Innovation Trends

in the Consumer Behaviour

Focus in Food Services

Sonia D’Arcangelo

Innovation Observatory Office

Research and Acceleration of Innovation Department

MAY 2017

FOR INTERNAL AND EXTERNAL USE

CIRCULAR AND

SUSTAINABLE

CONSUMERISM

NO DEMOGRAPH

CONSUMERISM

WELLNESS AND

MINDFULNESS LIFE

AI - ROBOT WAVINGHYPER-

PERSONALIZATION

FAST SHOPPING/

OMNI CHANNEL

MARKETING

TRAINING/

CONTENT

REVOLUTION

CONSUMER

TRENDS:

BIG PICTURE 2017

CONSUMER TRENDSFOOD

SERVICES INNOVATIONS

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CONSUMERISM

It’s the death of demographic

segmentation (no more age,

gender, income, family status

and more) to predict

consumer behavior

People of all ages are shaking

off demographic ‘conventions’

and constructing lifestyles and

identities more freely than ever

before.

New attitudes, new

expectations and new

freedom are coming up.

CONSUMER TRENDSCrucial words: polarization, new populisms,

anger, trust and post-truth.

THE ULTIMATE IN STATUS IN 2017?

Source: Trendwatching

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CONSUMERISM

Source: Trendwatching

Status is becoming less

about what I have, and more

about who I am.

Shift has been amplified by

social media, which has

turned personal achievement

into a shareable currency.

That means a status race to

prove I am healthier,

smarter, more creative,

more connected, and more

entrepreneurial than the

rest. And that’s just the start!

CONSUMER TRENDSDespite all the uncertainty of this new environment, five

powerful forces shaping the future remain as powerful as ever.

#1 TRANSPARENCY

#2 ASPIRATION

#3 ASPIRATION

#4 TOLERANCE

#5 EMPOWERMENT

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CONSUMERISM

Source: Internet

Food is particularly suited to

creative contamination

with other cultures –

Europe and India for example

- to create new experiments

and new innovative location

putting humans at the center

of experimentation.

Food is configured as a

wonderfully inspiring

theme for designers.

CONSUMER TRENDS The future of food & beverage brands in a post-truth world?

Brands that make the world a better place.

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CONSUMERISM

Source: Internet

In the Globalitazion Muslim

world’s fastest-growing

religious group is making its

influence felt across

consumer categories.

According to new analysis

from the Pew Research

Center, the number of babies

born to Muslim families will

begin to outpace those born

to Christian families by 2030.

Between 2010 and 2015,

births to Muslim families

made up 31% of all births.

CONSUMER TRENDS

• Halal food is reaching a

growing share of the global

palate. In the United

States, the halal foods

market is projected to hit

$20 billion this year, up

by one third since 2010,

according to the Islamic

Food Council.

• Halal foods appeal to a

wider range of health-

conscious consumers.

“Halal is not just some

religious aspect. “It has

to be healthy.

Healthy living is

becoming a status

symbol, as more

consumers opt to flaunt

their passion for wellness

through paying for

boutique fitness

sessions, “athleisure”

clothing, food with

health-giving properties

and upscale health and

wellness holidays.

WELLNESS AND

MINDFULNESS LIFE

CONSUMER TRENDS Consumers have many tools to promote ultimate wellbeing in

every area of their lives, from mindfulness apps and mood

sensors, to personalised nutrition and fitness wearables

also to monitor happiness.

The entire food industry is

being transformed by the

fusion of food, well-being,

and technology.

The future of food requires fresh thinking, new models of innovation, smart external development, and venture investing to create an ecosystem of innovative partners.

WELLNESS AND

MINDFULNESS LIFE

CONSUMER TRENDS Consumers are spending on health-driven

food services that help them manage overall wellbeing.

Rising numbers of consumers

are increasingly aware of the

negative impacts their consumption

has on the planet, society or

themselves.

33% of consumers are choosing

to buy from brands they believe are

doing social or environmental good.

That’s why the only truly

sustainable, long-term competitive

advantage will be businesses that

lessen – or eradicate entirely –

those negative impacts whilst

allowing continued indulgence.

CIRCULAR and

SUSTAINABLE

CONSUMERISM

Especially Millennials are constantly looking for sustainable

experiences with emphasis on the naturalness and food

origin.

CONSUMER TRENDS

Source: Unilever 2017

We produce more food

than ever before — but our

current model is

unsustainable, and as the

world’s population rapidly

approaches the 8 billion

mark, modern food

production methods will

need a radical

transformation if they’re

going to keep up

CIRCULAR and

SUSTAINABLE

CONSUMERISM

From lab-grown steaks to plant-based blood, science is

taking the animal out of meatCONSUMER TRENDS

Source: Digital Trends

CIRCULAR and

SUSTAINABLE

CONSUMERISM

CONSUMER TRENDS

Source: Fururism

CIRCULAR and

SUSTAINABLE

CONSUMERISM

CONSUMER TRENDS

Source: Fururism

Food has acquired a leading

role on the web and on social

networks.

Multitude of followers,

magazines, blogs, forums,

and tutorial sites dedicated to

it as well as numerous are the

generated content from

users gastronauts-sharing,

photograph and write reviews

of their dishes.

Source: Internet

TRAINING/ CONTENT

REVOLUTION

CONSUMER TRENDS

The rising viral food trend of

customers ordering food and

drinks based on their

"Instagram-ability",

regardless of whether they

actually like them or not.

Social media becoming key

in designing experiences that

should in fact be primarily

aimed at other sensorial

channels, e.g. the look of

food outweighing its taste

when it is shared.Source: NextAtlas

TRAINING/ CONTENT

REVOLUTION

CONSUMER TRENDS

THE INSTA-WINDOW

Virtual and augmented

reality applications are

creating new opportunities for

food and drink brand

communication.

Some restaurant chains are

already incorporating virtual

elements into their offering

to provide alternative

realities

Source: Walter Thompson

TRAINING/ CONTENT

REVOLUTION

CONSUMER TRENDS

Just Eat has given a glimpse

of the takeaways of the

future, experimenting with

technology that would allow

customers to view a table full

of holographic food using

Microsoft’s HoloLens AR

headset— and choose their

favorites even though the

table is bare in real time.

Source: Walter Thompson

TRAINING/ CONTENT

REVOLUTION

CONSUMER TRENDS

It’s an age of human

empowerment. It’s designing

technology and services about us

that conforms itself to people.

We aren’t just incorporating

technology into our lives; as it

becomes exponentially more

sophisticated, we are embedding

humanity into the technology

itself.

Consumers look to AI to serve

basic human needs.

AI / ROBOT WAVING

CONSUMER TRENDS Consumers adopt intelligent services that make

their lives easier, faster and more fun!!

Source: Foodbev

AI / ROBOT WAVING

CONSUMER TRENDS

With the AI market

expected to grow to

$5.05 billion by 2020,

there is a massive

opportunity for the

food and beverage

industries to harness

its capabilities, improve

offerings, optimise

operations and deliver

a better customer

experience.

Consumers are asking for help when it comes to food.

Research by J. Walter Thompson shows that 77% of UK/US

millennials want technology to offer them more assistance

in planning and cooking healthy meals

Source: Foodbev

AI / ROBOT WAVING

CONSUMER TRENDS

When it comes to time

optimisation and consumer

engagement, speech and

image recognition are two

facets of AI that can play an

important role, Like in

Personal diet coach app.

If consumers can save time

logging their meals, they will

be more likely to track their

behaviours and share their

invaluable data with apps

and, ultimately, brands.

AI can also engage consumers on a large scale. Chatbots

are computer programs that simulate conversation. When

augmented with AI, they can deliver responsive, cost-effective

customer service to a limitless audience over food messaging

platforms

In 2017, consumers are impatient.

The digital world has schooled more

of them into becoming so-called

“IWWIWWIWI” — “I want what I

want when I want it” —

consumers, impulsive and in pursuit

of immediate gratification.

They want services yesterday and

real-time virtual dialogue with their

brands.

With constant mobile

connectivity, consumers can (and

do) connect with friends and

strangers at almost any moment.

FAST SHOPPING/

OMNICHANNEL

MARKETING

CONSUMER TRENDS

MORE THAN 50% OF ALL HUMANS USE A

SMARTPHONE

(WeAreSocial, January 2017)

Consumer expectations for

on-demand food and drink

delivery are sky-high

(literally)— and they’re willing

to pay extra for convenience.

On average, consumers are

willing to pay 11% more for

each added layer of

convenience in the food

chain, from online grocery

delivery to restaurant take-

out, according to recent data

from Lux Research.Source: Lux Research

FAST SHOPPING/

OMNICHANNEL

MARKETING

CONSUMER TRENDS

HYPER

PERSONALIZATION

The Hyper-Personalization trend

refers to the flourishing of products

and services that can be fully

personalized.

A widespread need for extreme

customization is getting more and

more popular also in the food system.

The number of restaurants offering

vegetarian menus, vegan and raw

food is continuous and steady

growth along with the slice of

consumers who have embraced

these "new" habits.

CONSUMER TRENDS

HYPER

PERSONALIZATION

Consumers are aware that eating

habits directly influence quality of

life.

This is fuelling unprecedented

demand for healthier eating

options with fitness-promoting

attributes. With the endorsement

of health experts, such as

nutritionists, chefs, fitness and

medical professionals, brands are

busy creating products with the

addition of health-giving

properties, including exotic

vegetables, vitamins and fibre.

CONSUMER TRENDS

HYPER

PERSONALIZATION

People can customize

their diets based on their

genetics, leading to the

ability to help manage

certain diseases through

proper food consumption.

Foods can also be

designed to align with

personal preferences.

In Food world this leads to

Internet of Food

CONSUMER TRENDS

HYPER

PERSONALIZATION

The kitchen of the future, is

likely to be equipped with

dispensers to deliver your

personalised prescription

of nutritional supplements.

A daily dose might be

squirted into your morning

coffee.

A 3D printer will include the

nutrients you need in

a bespoke piece of

chocolate in your favourite

shape.”

CONSUMER TRENDS

Individually Tailored diets are coming.

FOOD SERVICES INNOVATIONSCONSUMER TRENDS

An Innovative New

Snack Bar

Maintain Energy

From Dawn to

Dusk!

RAMADAN ENERGY BAR

Ramadan Energy Bar is a blend of simple and complex

carbohydrates designed specifically to maintain blood

sugar for up to 9 hours, giving you energy all day. Its

the ideal nutritional supplement for fasting.

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CONSUMERISM

Halal home cooked

Baby Food

HALAL BUBS

Its the first company of its kind.

No longer do parents have to worry that their

child may ingest un-fresh, pre-packaged and

sometimes even mouldy food.

NO DEMOGRAPH

CONSUMERISM

Alternative protein food.

Enjoy our gluten/soy/grain/dairy-free bars on a

monthly basis, simply by subscribing to the Exo Elite.

EXO CRICKETS

FAST SHOPPING/

OMNICHANNEL

MARKETING

CIRCULAR and

SUSTAINABLE

CONSUMERISM

Vegan butchery opens in São PauloNO BONES

CIRCULAR and

SUSTAINABLE

CONSUMERISM

NO DEMOGRAPH

CONSUMERISM

Starbucks Weaves

its Magic with

New Color and

Flavor Changing

Unicorn

Frappuccino

STARBUCKS

TRAINING/ CONTENT

REVOLUTION

The Unicorn

Frappuccino is

presented in

Instagram.

Blended crème is made

with a sweet dusting of

pink powder, blended

into a crème.

It is finished with vanilla

whipped cream and a

sprinkle of sweet pink

and sour blue powder

topping.

Starbucks offers

voice-activated

ordering

STARBUCKS

Using Amazon's Alexa assistant, customers can place

orders using voice commands, simply by saying

“Alexa, order my Starbucks.

AI / ROBOT

WAVING

FAST SHOPPING/

OMNICHANNEL

MARKETING

COCA-COLA Consumer browsing history used to display personalized ads in store

HYPER

PERSONALIZATION

NIKON Food truck's menu encourages people to get their eyes tested

WELLNESS AND

MINDFULLNESS LIFE

Intelligent nutrition assistant

helps people eat more healthilyAVA

WELLNESS AND

MINDFULLNESS LIFE

AI / ROBOT

WAVING

TESCO Supermarket unveils food-filter service for customers with intolerances

WELLNESS AND

MINDFULLNESS LIFE

FAST SHOPPING/

OMNICHANNEL

MARKETING

Craft brewery uses DNA to create bespoke beer

MEANTIME

HYPER

PERSONALIZATION

Ride-sharing app launches data-driven restaurant guide

UBER

AI / ROBOT

WAVING

FAST SHOPPING/

OMNICHANNEL

MARKETING

Café kiosk features robot baristaCAFÉ X

AI / ROBOT

WAVING

Smart fridge allows people to order groceries from their kitchen

SAMSUNG

AI / ROBOT

WAVING

FAST SHOPPING/

OMNICHANNEL

MARKETING

WASTELESS Grocery prices automatically decrease as their expiration date approaches

CIRCULAR and

SUSTAINABLE

CONSUMERISM

Beer brand transforms empty bottles into building materials

DB BREWERIES

CIRCULAR and

SUSTAINABLE

CONSUMERISM

Wine company offers complete product

transparency about how much element

costs in producing wine

ALIT

TRUTH IS STILL TRANSPARENCY

TRAINING/ CONTENT

REVOLUTION

US Based chocolate lanched special-

edition chocolate boxes encouraging

customers to share

GODIVA

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CONSUMERISM

Fast food chain's combo meal designed for

seniors and individual accompanying elederly

people

BURGER KING

NO DEMOGRAPH

CONSUMERISM

COOP SWEDEN Supermarket reduces plastic packaging on own-brand meat

CIRCULAR and

SUSTAINABLE

CONSUMERISM

IKEA

IKEA is opening a "Do-It-Yourself Restaurant", in which diners will be the chefs.

HYPER

PERSONALIZATION

BAIDU & KFCFast food chain

recommends meals

via facial

recognition

AI / ROBOT

WAVING

FAST SHOPPING/

OMNICHANNEL

MARKETING

HYPER

PERSONALIZATION

WELLNESS AND

MINDFULLNESS LIFE

Wine subscription matches customers' DNAVINOME

HYPER

PERSONALIZATION

Artificial Intelligence used to brew beer

INTELLIGENTX

BREWING

COMPANY

AI / ROBOT

WAVING

Supermarket invites shoppers to dig up their own vegetablesZONA SUL

CIRCULAR and

SUSTAINABLE

CONSUMERISM

Railway company introduces healthy eating food serviceJAPAN RAILWAY

COMPANY

HYPER

PERSONALIZATION

WELLNESS AND

MINDFULLNESS LIFE

Handheld sensor collects health and wellness dataONE X

HYPER

PERSONALIZATION

WELLNESS AND

MINDFULLNESS LIFE

Brewery devises biodegradable, edible packagingSALTWATER

BREWERY

CIRCULAR and

SUSTAINABLE

CONSUMERISM

Data & information have

been collected from:

Thank you