The economic slowdown is changing the way consumers shop. Many consumers are spending less on discretionary purchases such as dining out and beauty and grooming services and demanding higher value-for-money products. Health-related products are definitely the ones consumers want in their baskets as 67 percent are spending more on them compared to 12 months ago.

A study by Mintel highlights some of the consumer trends that the industry is witnessing in recent times:-.

Affinity Towards Tradition

The pandemic led consumers across all age groups to lean towards traditions in food, beauty regimes, and health and wellness. This is clear as 39 percent of people aged 35-44 expect brands to offer traditional ingredients in packaged formats. People want products offering functional benefits aligning with their cultural needs, seeking immunity-boosting, energizing, or stress-relieving benefits rooted in tradition. This creates an opportunity for brands to play up the health benefits of local ingredients like tulsi, ashwagandha, and ghee.

High-Protein in Demand

There is a lack of confidence among consumers that they are getting enough protein, which is good news for food and drink companies. While this sentiment resonates equally among vegetarians and meat-eaters, it chimes more among women than men. The recommended dietary allowance of protein for an average Indian adult is 0.8-1g per kg body weight, however, the average intake is about 0.6 gm per kg body weight. Opportunity exists for brands to introduce products, especially targeted at women that can fulfill their daily protein need conveniently and cost-effectively.

Plant-based Diet on the Rise

High-protein claims in food and drink launches in India have grown by 25 percent between November 2018 and October 2021. Among high-protein launches globally, the plant-based claim has risen by 40 percent between November 2019 and October 2021. In India, 84 percent growth was observed over the same period. This is, therefore, an opportune time to highlight plant-based protein in India.

Growth of Meat Substitutes

55 percent of surveyed consumers agree that vegetarian meat substitutes do not appeal to them. This resonates with just over half of the vegetarians across all age groups. One of the reasons for this is the association of the word 'meat', which is likely off-putting to some. The non-appeal of meat substitutes is much more prominent among meat-eaters aged 18-44 than vegetarians. This is primarily because the earliest meat analogs introduced to Indians were soya chunks and other textured soy proteins. These first-generation soy products have been positioned as vegetarian meat alternatives for over a decade and are widely known to consumers.

Seven in 10 meat eaters say dishes made using meat substitutes do not provide the same experience, taste, and texture as the real thing. Over the last couple of years, India has seen over a dozen start-ups offering a range of second-generation plant-based meat alternatives such as vegan chicken, veggie burgers, keema, and kebabs which precisely mimic their animal-based counterparts. Exposing meat-eaters to these plant-based meat alternatives and making every effort to ensure they have good experiences is essential to growing the niche category.

Healthy Skin Matters

As Covid-19 has raised the issue of both physical and mental health, consumers’ mindset towards skincare has undergone some significant changes. Stress, lack of sleep, and an unhealthy diet are becoming the main contributors to skin problems. Consumers are demanding newer approaches to skincare because they recognize that beauty comes from the inside out. Food-based ingredients and probiotic claims will play a strong role in conveying inside-out wellness, as well as leveraging the botanical/herbal claims in India. Skin health claims such as strengthening the skin barrier and skin immunity will drive the beauty conversation rather than skin appearances.

Scalp Care Gains Prominence

While shampoo mostly focuses on addressing consumers’ hair problems, scalp-related issues are big in India and often overlooked by the industry — only 26 percent of shampoo launches focus on dandruff and skin disorder claims. Tapping into this new territory of scalp care claims can help grow the shampoo category even further. Though scalp may seem like a completely new field for shampoo to fill in, it is actually heavily related to hair problems. 61 percent of Indian consumers who face dandruff also experience hair fall. Shampoo can incorporate hair oil in its offering, which consumers highly associate with scalp care, in order to innovate and venture into this new sphere.

Value-Added Experiences

Consumers are willing to go the extra mile for value-added experiences. A key trigger for the purchase of premium products is the entire experience associated with them. 47 percent of Gen-Z and 52 percent of millennials say experiences are more important to them than material possessions, given their involvement with social media and the need to update moments and personal experiences online. Brands can capitalize on consumers' desire for products to be 'more than just products'. Accentuating experiences associated with the consumers' journey from decision making to consumption and after-sales will play a major role in improving the experience. These can range from innovative packaging, home delivery, association with social causes, social media mentions, and post-purchase follow-up.