Market research company, Euromonitor International, has released a megatrend analysis report, identifying the 10 most influential themes on consumer behaviour.

Driven by shifting economic power, population change, environmental shifts, technological advances, and changing cultural values, megatrends are descriptions of customer values, priorities and preferences.

“Megatrends are long-term, fundamental shifts in consumer behaviour,” Euromonitor International wrote in the report.

As megatrends are broader in scope, they can be key to innovation. With an understanding of consumer desires, businesses can be better equipped to create long-term plans.

“Megatrends often transcend economic fluctuations but significantly shape market direction, competitive landscapes, purchase habits and profit,” the report noted.

The ten megatrends Euromonitor International identified are convenience; digital living; diversity and inclusion; valuing experiences; personalisation; premiumisation; pursuit of value; reinventing shopping; sustainable living; and wellness.

Digging into the megatrends

While all of these megatrends are useful, there are a few that stick out as extra relevant for Australia’s liquor retail industry.

One such important megatrend is convenience. The report notes that consumers are seeking easier, seamless options in retail, with 67 per cent seeking ways to simplify their life. They are coming to expect near-immediate access to products and services at any time, from any place, with minimal effort.

“Consumers demand convenience across all aspects of their lives, from each touchpoint or transaction, especially as the world becomes even more complex and noisy,” Euromonitor wrote.

As 42 per cent of consumers are willing to spend more money to save time, it is also a potential revenue booster. However, it is important to justify costs increased in the name of convenience by identifying advantages to the consumer.

Tied closely to this convenience megatrend is that of digital living, with more and more people adopting technology in different ways.

As 72 per cent of consumers use technology to improve their day-to-day lives, in-person and online retail are expected to work together seamlessly. Digital integrations can provide the speed and flexibility that customers seek in their purchase activities.

The values of consumers are also increasingly influential in the retail space, with consumers increasingly expecting brands to be making a positive impact on the world.

A common theme throughout these megatrends is that retail is no longer just about a product. Consumers are also seeking an experience, and 60 per cent want that experience to be personalised to them.

“Consumers won’t settle for typical or basic. They want better. Now, it’s about high-quality, value-added interactions. Unique, captivating, curated, entertaining—these are all examples of elevated engagements that are expected,” identified Euromonitor.

Currently, 48 per cent of consumers want tailored products and services, and 47 per cent want to be perceived as unique, with Euromonitor expecting this demand to increase. This affects customers’ expectations for how their data is used – 47 per cent expect personalised experiences in exchange for sharing their preferences and 38 per cent share their data to received personalised and targeted offers. From the consumer’s point of view, retailers should be using their data on a granular level to recommend the exact products they desire.

Another two megatrends that could be analysed together by the liquor industry are premiumisation and value. Euromonitor noted 34 per cent of consumers would rather buy fewer but higher quality products, and are becoming increasing discerning in their purchases.

“Consumers will spend money on the things they value most. Their desire for healthier, sustainable, unique and intentional living drives their willingness to pay more for what matters,” the report said.

Read the full paper from Euromonitor International here, which includes a full analysis of all the megatrends, as well as recommendations for businesses on how to utilise these trends in their innovation and planning strategies.

Euromonitor launches new data solution for e-commerce

As well as the informative megatrend report, Euromonitor has also launched a new data solution focused on e-commerce. It aims to provide businesses with market intelligence and valuable insights around how consumers are engaging with brands online.

The Euromonitor E-commerce solution provides online sales data by industry, category, company, brand and retailer, and is updated every three months. It operates in a key channel, with Euromonitor predicting e-commerce will remain a dominant retail force, accounting for 47 per cent of retail growth by 2027.

In Australia specifically, Euromonitor notes that online shopping increased by 27 per cent between 2019 and 2022.

Tim Foulds, Head of Insights at Euromonitor International said: “In Australia, post-pandemic consumers are becoming more mindful of their product choices, origin, and the environmental cost of their food. They also seek budgetary options in the short to medium term.”

Reflecting on the launch of the e-commerce solution, Jared Koerten, Head of E-commerce at Euromonitor International, said: “As e-commerce continues to dominate retail, it is more important than ever for companies to have access to accurate and reliable online sales data. We believe that this new solution will be a game-changer for businesses looking to grow and thrive in the digital age.”

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