Givaudan sees consumption in 2018 being driven by 7 trends
Scent and flavor market leader Givaudan is the name behind many of our most recognizable tastes and fragrances, supplying an enormous proportion of the consumer food, cleaning, and perfume industries – amongst many others. The company has recently completed a huge research project to try and understand what is shaping “the future of food demand”. It spoke to 33,000 consumers in 25 countries in an effort to identify “high-level forces of change”. It then spoke to experts in the field (food sociologists, professional chefs, etc.) in an effort to “deepen” its research.
Givaudan’s share price is up 18% over 12 months
SOURCE: Yahoo Finance
The company identified 70 “crucial drivers” and “leveraged attitudes” that are changing the way we think about and consume food. Of these, 7 composite trends are, the company says, key to understanding the changes we’re witnessing:
The first, Crafted Identities, is a reflection of people embracing “more complex, fluid expressions of self beyond gender, race, and ethnicity.” According to Givaudan: “this translates into food choices driven by social causes and values; novelty, exotic flavours and flavor fusions, and food experiences worth sharing socially.”
Next in the list is Layered Wellness – a reflection of the new possibilities for high-tech health solutions. Givaudan writes: “the increasing quantification of health is enabling more proactive wellness measures and driving consumer demand for functional foods, ‘better for you’ products and pure and simple ingredients lists.”
Third comes Human Connection, which describes consumers’ new levels of “mobility” and “independence”: “this is translating into a demand for authentic flavours and cooking methods, food with a provenance or connected to a specific culture and sustainable and ethically sourced products.”
Tailored Expectations suggests that: “advances in technology will allow consumers to quantify and communicate their needs, permitting trusted brands to provide the most relevant solutions.” According to Givaudan, this means new levels of diversification and “niche food and drink products” alongside personalized nutrition plans.
DelightFULL describes consumers’ increasing taste for “moments of escape and meaningful indulgence.” Givaudan says this will result in a rise in “multi-sensory eating experiences” that use indulgent ingredients and exotic tastes.
Number six on Givaudan’s list, Risk Aware, describes a tendency to distrust the food sector, caused by “conflicting information” on health, global security and the environment. A “natural” response is the interest in “natural” solutions, including organic and sustainable food, transparent labeling and minimally processed food.
The last spot on the list goes to Augmented Self. This trend is a reflection of our increasing desire towards self-improvements, using everything from modern solutions (genomics and sensing technologies) to ancient ones (Ayuvedra). In any case, the trend describes consumers’ taste for “functional” foods with “physical, emotional and cognitive benefits.”
Dominion holds Givaudan in its Global Trends Managed Fund.
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