Blog: Hypes, Market trends, Category trends, Driving forces...

Innovation is fascinating. If you want to create meaningful innovation you should pay attention to market trends, but, what kind of trends to focus on? How to use them in your strategic and operational plans?

These concepts play pivotal roles in shaping business strategies and decision-making. 🚀

Driving Forces: are the underlying factors or developments that cause significant change. They propel shifts in the business landscape and influence future outcomes.

• Characteristics:

• Cause and Effect: Drivers are the causes behind specific effects or outcomes.

• Impact: They shape the future by affecting various aspects of society, economy, technology, or environment.

• Long-Term: Drivers operate over extended periods, often decades.

• Example (FMCG Industry): The aging population is a driving force. As people age, their consumption patterns change, leading to increased demand for health-related products and services. Densia yogurts from Danone offer an added value for this population, supporting their bones with Calcium.

Densia yogurt aging population

Market Trends: are general patterns or directions of change observed in consumer behavior, preferences, or industry dynamics.

• Characteristics:

• Observable: Trends are evident through data analysis and observation.

• Time-Bound: Trends occur over shorter time frames (usually several years).

• Response Needed: Organizations must adapt to market trends to remain competitive.

• Example (FMCG Industry): The rise of e-commerce and online grocery shopping is a market trend. FMCG companies need to optimize their digital presence and supply chain to cater to this shift. Mercadona retailer at the begining of this trend, was not sure about the future of e-shopping. However they realized it will be very important in the future, so they have invested a lot of money on it.
  

Mercadona online

Category Trends: specifically pertain to product categories within an industry. They highlight changes in consumer preferences or demand for specific types of products.

• Characteristics:

• Niche Focus: Category trends zoom in on particular product segments.

• Varied Durations: Some category trends persist longer, while others are short-lived.

• Strategic Implications: Businesses must align their offerings with category trends.

• Example (FMCG Industry): The plant-based food trend falls within the category of meat & dairy alternatives. Companies are launching innovative plant-based milk, cheese, and yogurt products to meet consumer demand. Alpro from Danone, is a great example of this market trend. On the meat alternatives Heura or the PL are good examples.

Alpro vegan

Hypes: refer to exaggerated or short-lived trends that capture widespread attention but may not have long-term viability.

• Characteristics:

• Frenzy: Hypes create buzz and excitement.

• Risk of Overinvestment: Organizations must be cautious not to overcommit resources.

• Temporary: Hypes fade quickly.

• Example (FMCG Industry): Remember the fad for kale chips a few years ago? It was a hype—everyone wanted them—but the trend subsided as other health foods gained prominence.

kale hype

In summary, understanding these concepts empowers businesses to navigate the ever-evolving landscape. By identifying driving forces, monitoring market and category trends, and discerning hypes, organizations can make informed decisions and stay ahead in the race for innovation. 🌟

It is very important to have a good understanding of them, being able to identify meaningful insights behind to trigger your strategy or operational plan.

For more insights, check out the FMCG Pulse Report by NielsenIQ, which provides a comprehensive view of global FMCG trends and regional data1.