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Market review 2009<br />
Consumer trends<br />
In recent years there has been a consumer ten<strong>de</strong>ncy towards<br />
more healthy food, convenience, indulgence and ethics. These<br />
drive new innovations and have caused an amalgamation of<br />
traditional segments, such as juices, soft drinks and water<br />
into new concepts, such as still drinks. These trends are still<br />
visible, even in the recent recession. The economic downturn<br />
accelerated a fifth trend, already distinguished in the previous<br />
years: value for money.<br />
First, consumers recognize a connection between healthy food<br />
& drinks and their well-being. The increasing inci<strong>de</strong>nce of<br />
overweight and obesity in the Western world is making people<br />
ever more conscious of the necessity to nourish their bodies<br />
in a healthy way. They are willing to pay more attention to the<br />
food they eat and the beverages they drink in or<strong>de</strong>r to help<br />
them improve their quality of life. CSDs have suffered from this<br />
shift which drives the amalgamation of traditional segments.<br />
Instead of CSDs, people now choose lighter flavored waters<br />
or fruit drinks. This trend is also responsible for the rise in<br />
consumption of fresh pressed Not From Concentrate (NFC)<br />
juices. Anticipating this trend, <strong>Refresco</strong> is investing in backward<br />
integration in orange juice, in Spain for instance.<br />
HEALTH &<br />
WELLNESS<br />
(diet, nutrition)<br />
CONVENIENCE<br />
(lifestyle)<br />
Another way in which <strong>Refresco</strong> contributes to the health<br />
trend is by succeeding in <strong>de</strong>veloping a new CSD without any<br />
preservatives by using a new aseptic technology.<br />
Second, the convenience market is growing because people are<br />
eating out more and eating fast food to make time for more<br />
leisure activities to counter their busy lifestyles.<br />
Third, we see an upward trend in the <strong>de</strong>mand for premium<br />
products, however small they may be, as a result of growing<br />
affluence. Even in times of economic downturn people like to<br />
indulge or treat themselves. Instead of expensive presents,<br />
people now turn to smaller luxury goods, and that causes a<br />
shift to premium-priced, value-ad<strong>de</strong>d products such as fruit<br />
juice smoothies and functional drinks.<br />
Fourth, ethical retailing – and environmental issues (climate<br />
change, recycling, etc.) are gaining ground on the consumer<br />
agenda. Factors un<strong>de</strong>rlining that this trend is growing are: the<br />
proliferation of local recycling schemes, and pilot recycling<br />
programs that will charge on the basis of waste quantity. But<br />
this trend is not yet booming.<br />
VALUE<br />
FOR MONEY<br />
PREMIUM<br />
(indulgence)<br />
ETHICS<br />
(sustainability,<br />
sourcing)
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