Imagine walking into a store, hesitating between several items that have caught your eye. One is made locally, with respect for the environment. Another is high-tech, promising to revolutionize your daily life. The third offers unrivalled security for your personal data. How do you make your choice?
In the complex and dynamic European consumer landscape of 2023, consumers are no longer guided by price and quality alone. A host of new concerns and values, shaped by global challenges and societal evolutions, now have a major impact on their purchasing decisions.
Sustainability, the circular economy, health and wellbeing, data security, localism, transparency and cutting-edge technologies have become the seven keys that open or close the door to European consumer loyalty. Let’s dive into this exciting whirlwind of consumer trends and explore together how these seven concerns are shaping the European market of today and tomorrow.
In order of importance, from most to least motivating for Europeans:
1.Health and Wellness: The COVID-19 pandemic has reinforced the importance of health and wellbeing, often putting this factor at the top of consumers’ concerns. Consumers are more inclined to choose products and services that support their physical and mental health.
Examples:
- Organic food, without additives or chemicals.
- Meditation and fitness apps.
- Beauty products free from parabens, sulfates and other potentially harmful substances.
2. Sustainability: With growing environmental awareness, more and more consumers are looking for sustainable, environmentally-friendly products. This also includes a preference for companies that follow ethical and sustainable practices in their production.
Examples:
- Clothes made from recycled materials.
- Biodegradable cleaning products.
- Energy-efficient electronic devices.
3. Data security : With the increasing use of online services and digital transactions, concern for data security and privacy has intensified.
Examples:
- Online payment services offering bank-level security.
- Applications that don’t require excessive permissions and that respect the confidentiality of user data.
- Cloud storage services with high-level encryption.
4. Transparency: Consumers want to understand where their products come from, how they’re made, who makes them and what the company’s values are. They are more likely to choose products from brands that are transparent in their operations.
Examples:
- Clothing brands that publish detailed information about their factories and working conditions.
- Beauty brands that reveal all their ingredients and explain their uses.
- Fast food chains that provide detailed information on the provenance of their food.
5. Localism: More and more consumers value local products and support local businesses. This is often linked to perceived quality, supporting the local economy and reducing the carbon footprint caused by transport.
Examples:
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- Agricultural products sold directly by local farmers.
- Locally produced beers and wines.
- Clothing and accessories made by local artisans.
6. Circular Economy: This is an extension of sustainability, where consumers are increasingly concerned with the entire life cycle of a product – from its creation to its end-of-life. They are more inclined to choose products that are designed to be recycled or reused.
Examples:
- Furniture designed for easy disassembly and recycling.
- Take-back programs through which customers can return used products for recycling.
- Rental or exchange services for high-quality items that are intended to be used over a long period (e.g. high-fashion clothing, tools, electronics).
7. Cutting-edge technologies: More and more consumers are interested in products and services that use the latest technologies, whether in electronics, clothing or services.
Examples:
- Smartwatches that monitor health and well-being.
- Electric cars with self-driving technology.
- Smart home devices for remote control of lighting, heating, security, etc.
Navigating the changing landscape of European consumption is no easy task. In 2023, European consumers have reaffirmed their desire to play an active role in their consumption, to give meaning to their purchases, and to link their individual preferences to global challenges. Health and well-being, sustainability, data security, localism, transparency, circular economy and cutting-edge technologies: these seven keys form the compass of contemporary consumption.
It’s not just a clever marketing strategy for companies to take these concerns into account. Rather, it’s a necessary response to increasingly strong consumer demand for products and services that respect their values and aspirations.
As we move into the future, we can expect these trends to become stronger and more complex. Sustainability and the circular economy could become even more important as the consequences of climate change are felt. Data security and transparency could take on a new dimension with the development of cutting-edge technologies. Localism could be transformed, integrating notions of community and solidarity.
In this dynamic context, one thing is certain: understanding and responding to consumer concerns is an imperative for any company wishing to succeed in the European market. As consumers become increasingly aware of their power and responsibility, the future belongs to those who know how to reconcile economic performance with respect for values.
Bonus, and how is it going in other parts of the world?
North America
Consumer spending in North America is strongly influenced by technology and innovation. There is strong demand for high-tech products, and companies that use innovative technologies to improve their products and services tend to do well. Environmental concerns are also on the rise, with growing demand for sustainable, environmentally-friendly products.
South America
In South America, consumers attach great importance to accessibility and value. Local products are appreciated, and there is a growing awareness of the importance of sustainability. Safety can also be a major concern in some regions.
Asia
In Asia, consumption is influenced by a combination of cultural traditions and modern trends. High-tech products are in high demand, particularly in countries with strong economic growth such as China and South Korea. At the same time, there is an appreciation for traditional and local products. Sustainability and eco-responsibility are also gaining ground.
Africa
In Africa, consumers attach great importance to value and affordability. In many countries, the growth of the technology sector has led to an increase in demand for technological products. Local products are also highly valued. Environmental concerns may be less pronounced than in other regions, although this is changing.