More than half of respondents to Fairtrade’s biennial Fairtrade Consumer Insights report, conducted by GlobeScan, confirmed they have changed their purchasing choices within the past year to make a difference on economic, social, environmental or political issues, indicating people increasingly see their everyday shopping as an important way to make a difference.

Fairtrade America expects this consumer attitude will manifest in five key ways in 2022:

Consumers will continue to demand companies focus more on sustainability.

As climate change continues to worsen, consumers are looking to brands to provide sustainably sourced and produced products they can feel good about purchasing. Per the Insights report, more than a quarter of consumers say they always or usually base their purchases on sustainability, which is an increase of 11 points over the last 14 years and up 4 points from 2019.

Climate studies predict that by 2050 coffee, tea, cocoa, and cotton will be so severely affected that production in some areas will even disappear. While the world’s wealthiest 10% are responsible for 50% of global emissions, it is those disadvantaged by unfair trade systems who are enduring the extreme hardship caused by climate change. At this year’s COP26 summit in Glasgow, for example, more than 30,000 consumers the world over voiced their demand for businesses and governments to act on behalf of farmers facing the challenges of an unstable climate by signing Fairtrade’s “Be Fair With Your Climate Promise” petition.

Advocacy for human rights and fair wages will go global in scale.

In 2021, 73% of Fairtrade shoppers were willing to pay more for a product to ensure farmers and producers were paid a fair price; specifically, up to 35% more per pound for Fairtrade coffee and 30% more per bar for Fairtrade chocolate. About three quarters of consumers familiar with Fairtrade agree that when they buy certified products, they “feel part of a community standing up for fairness and justice.”

Large companies are taking note and re-examining their supply chains to ensure they are meeting these consumer demands. For instance, in 2020, Unilever announced a commitment to ensuring that workers who directly supply its goods and services across 190 countries will receive a living wage by 2030.

Shopping for everyday goods online will remain the new norm.

Covid-19 led more consumers to make purchases online — a trend that will continue into 2022. This digitalisation makes it easier for shoppers to compare products and learn whether a company’s sourcing and manufacturing practices align with their values. (Fairtrade – both International and America – is partnering with online retailers like Amazon to help shoppers find Fairtrade certified products through its Climate Pledge Friendly programme. Fairtrade America also launched a Product Finder with hundreds of certified goods sold in the US to help consumers easily identify and purchase Fairtrade certified products.)

Shoppers will seek out organisations and companies that promote gender equality.

Female producers in coffee, tea, cocoa, and other agricultural products worldwide are still fighting for equal rights and opportunities. A large proportion of the world’s food is farmed by women, yet there is a significant gender gap in agriculture leaving female farmers with less access than their male counterparts to resources like land, information, credit, training, and supplies. According to GlobeScan survey data, frequent Fairtrade shoppers care more than average about women’s causes.

More mission-focused brands + brand transparency.

There is a clear consumer desire to support brands that are not only taking care of their own teams and suppliers, but also contributing to making the world a better place. A study by Zeno Group found that consumers are up to six times more likely to buy from companies with a strong purpose. Additionally, 71% of consumers indicated that traceability is very important to them and that they are willing to pay a premium for brands that provide it, according to IBM Research Insights. Thus, companies have an opportunity to attract new customers and drive loyalty with existing shoppers by authentically developing a transparent supply chain and by celebrating how they work to benefit people and the planet.

This is of particular importance to Generation Z consumers, as the feature, “Recognising the Power and Potential of Generation Z” in T&CTJ’s January issue details.

Not quite pursuant to the sustainability trend, but more so serendipitously, T&CTJ, Firsd Tea and Crothers Consulting have collaborated to create what we believe is the ‘first of its kind’ tea survey to gauge perceptions of sustainability in the global tea industry among business leaders in the tea, coffee, cocoa, and wine sectors. The survey – which takes about 10 minutes to complete – launched in mid-December on our website and there is still time to respond.

For every completed response, a contribution will be donated to 1% for the Planet, an international organisation whose members contribute at least one percent of their annual sales to environmental causes. Their mission is to “build, support and activate an alliance of businesses financially committed to creating a healthy planet.”

Access the survey here. We hope you will take time to share your thoughts on tea sustainability. Thank you!

Best wishes for a happy, healthy and prosperous 2022! Stay safe and be well!

• Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
  Keep in touch via email: vanessa@bellpublishing.comTwitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal.

The post New year, new consumer trends revealed appeared first on Tea & Coffee Trade Journal.

Per Euromonitor, the Top 10 Global Consumer Trends in 2021 are:

• Build Back Better
• Craving Convenience
• Outdoor Oasis
• Phygital Reality (physical + digital)
• Playing with Time
• Restless and Rebellious
• Safety Obsessed
• Shaken and Stirred
• Thoughtful Thrifters
• Workplaces in New Spaces

In describing the trends, the authors of the report, Gina Westbrook and Alison Angus, write, “We [consumers] want to make the world better — either for our own sake or for humanity. We want new ways to make life both convenient and safe, inside and outside. Where we have the ability, we are balancing our time creatively. Amidst the anxiety and turmoil, we seek holistic, resilient solutions, more thoughtful consumption and, in some cases, ways to fight back.”

They note that resilience and adaptability are the driving forces behind the top global consumer trends in 2021. The pandemic created, influenced or accelerated each of these ten trends, forever altering consumer behaviour. I won’t go into detail on all the trends, but some require comment.

Regarding “Build Back Better,” consumers are demanding that companies care beyond the bottom line. They believe companies should help reshape the world in a more sustainable way, leading a shift from a volume- to a value-driven economy while reforming social inequity and limiting environmental damage.

“Craving Convenience” may not seem to be a new trend, but Covid-19 reduced impulse shopping, forcing consumers to plan “walk-ins.” Furthermore, the pandemic accelerated digital adoption, which sent e-commerce soaring. “Businesses are under pressure to rapidly adapt their operations to develop a resilient customer experience while maintaining convenience. Companies must preserve the swift and seamless shopping journey across all channels,” explain Westbrook and Angus.

Consumers embraced internet-connected devices to maintain their daily routines amid Covid-induced lockdowns. According to Euromonitor, video conferencing, smart appliances and technologies like augmented reality (AR) and virtual reality (VR) helped consumers form new habits around working, learning, exercising, shopping, and socialising (e.g., 34% of consumers take part in online video gaming at least weekly). These digital tools enabled “Phygital Reality,” which is a hybrid of physical and virtual worlds where consumers can seamlessly live, work, shop and play both in person and online. “Businesses can integrate virtual processes into their physical spaces to give consumers who prefer to stay home the comfort to venture out instead. Delivering virtually enabled at-home experiences remains imperative to drive e-commerce sales and gather data,” note Westbrook and Angus.

Now, consumers are both able and forced to be more creative with their time in order to get everything done, hence, “Playing with Time.” Per Euromonitor, businesses should provide solutions that address the consumer desire to maximise time, offering increased flexibility, especially with products and services that can be accessed from or near the home.

“Consumers are fed up. Distrust in leadership has become the norm. Bias and misinformation are causing a crisis of confidence,” write Westbrook and Angus. They explain that companies can cater to the “Restless and Rebellious” via more precise marketing on social media and gaming, where they can give consumers a voice and pressure social giants to take on misinformation.

The report finds that “Safety Obsessed is the new wellness movement.” Consumers demand touchless, cashless and clean. The fear of infection and increased health awareness drive demand for hygiene products and pushes consumers towards contactless solutions to avoid exposure. Euromonitor advises companies to implement enhanced safety measures and innovations that target concerns to reassure consumers. (Pursuant to “contactless,” the report reveals that 44% of consumers would be comfortable receiving a delivery via drone or robot.)

“Shaken and Stirred” is an interesting trend. The authors explain that the global pandemic reconfigured daily lives, testing mental resilience, restricting experiences, and provoking economic shocks (per the report, 73% of consumers rate depression and mental health as currently having a moderate or severe impact on their everyday life). As a result, consumers have a new understanding of themselves and their place in the world in pursuit of a more fulfilled, balanced and self-improved life. “Businesses must provide products and services that support resiliency for mental wellbeing and to help Shaken and Stirred consumers weather adverse circumstances to gain trust.”

Euromonitor says that companies offering digital products and services are best equipped to help Shaken and Stirred consumers access information and virtual engagements to promote self-improvement and lifestyle balance. The report finds that pre-pandemic, 46% of Generation Z and 50% of millennials preferred spending money on experiences over things, but restrictions on large gatherings are generating interest in at-home events (such as at-home coffee and tea tastings).

With incomes being impacted by Covid, consumers are cautious and frugal (e.g., there was a 10% growth in sales of discount retailers like Aldi and Lidl from 2019 to 2020). “Discretionary spending is declining due to the uncertain economic environment. Thoughtful Thrifters are prioritising value-added and health-conscious products and services,” writes Westbrook and Angus. Euromonitor suggests companies pivot towards value-for-money propositions, offering affordable options without sacrificing quality. Premium attributes should be reinforced with a new empathetic story and have a strong tie-in with health and wellness, self-care or mental wellbeing.

“Workplaces in New Spaces” seems to be an obvious trend as working from home is not a new concept, but Covid refined it. The authors note that Covid had “a rippling effect on consumer life, from clothing choices to technology spend to eating habits and beyond. Consumers are searching for new ways to define the beginning and end of their workdays, as they struggle to manage their time.” According to the report, 64% of professionals think work from home will become a long-term change. Businesses must support work-life balance, productivity and communication needs. Understanding the benefits and challenges of working remotely allows companies to bring the best of the office into the home.

Consumers – people – are resilient, they will acclimate and adapt. As Westbrook and Angus state, “purpose-driven initiatives will resonate with consumers in 2021. Amidst social unrest, consumers want the facts and expect brands to act. Communicating with compassion and supporting mental wellbeing are critical attributes to drive brand loyalty. Flexibility, agility, transparency, and technology will pave the way forward. With mounting uncertainties reshaping the world, businesses should prioritise and reinforce consumer, environmental and safety needs to foster a brighter future.”

• Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
  Keep in touch via email: vanessa@bellpublishing.com
  Twitter: @TCTradeJournal or LinkedIn: Tea & Coffee Trade Journal.

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