This report provides an update on Premiumisation – one of the 10 megatrends, exploring the three key pillars of the trend to highlight where opportunities lie for business. Premiumisation continues to be highly sought-after by consumers seeking to enhance their wellbeing and consumers willing to pay more for premium products and services. In response, companies have leveraged consumers’ desires and wants through innovation and active marketing.
Key Findings
Premiumisation continues to be in demand amidst the cost-of-living crisis
Despite the current cost-of-living crisis, consumers continue to value premium products. This is driven by wellness, technological benefits and convenience. By being more discretionary in their spending, they purchase fewer items yet with better quality, to serve for their own self-love and building a better version of themselves.
Rising income and the attitudes of Gen Z consumers to spend more on themselves
Despite being cost-conscious, Gen Z consumers will arguably be one of the most important consumer groups for premium products and services, given the gain in their purchasing power by 2028. Moreover, they will also form the backbone of economic growth and will drive growth.
Consumers satisfy their own desires and wants through premiumisation
Consumers satisfy their own desires and wants, seeking greater value to specific benefits that serve their distinct lifestyles. This is done through looking for customised products and services that are personalised to their own liking, as well as indulgences and convenience solutions such as snacks and ready meals as well as luxury goods.
Consumers spend more to build a better version of themselves
Consumers seek to become their “best selves” and enhance their wellbeing, demanding more healthy solutions that take care of their physical and mental/emotional wellbeing.
Affordable premiumisation set to gain momentum
To cope with the high cost of living, consumers have normalised value-seeking products yet still demand affordable premiumisation. In response, brands are introducing this concept of “affordable premiumisation” where prices are lowered slightly and resold while still being positioned as premium to attract consumers.
The Megatrends: Premiumisation Megatrend briefing offers latest insights into long-term consumer-based trends impacting businesses globally. It highlights important shifts in consumer values and behaviour, how these are affecting the evolution of the trend and offers strategic analysis into the implications for companies across categories and geographies. It identifies where opportunities lie for business and showcases relevant product and service manifestations responding to the trend(s) and the changing consumer need.
Product coverage: Changing Values as a Megatrend Driver, Convenience, Digital Living, Diversity and Inclusion, Environmental Shifts and Pressures as a Megatrend Driver, Experience More, Personalisation, Population Change as a Megatrend Driver, Premiumisation, Pursuit of Value, Shifting Economic Power as a Megatrend Driver, Shifting Market Frontiers, Shopper Reinvented, Sustainable Living, Technology as a Megatrend Driver, Wellness.
Data coverage: Market sizes (historic and forecasts), company shares, brand shares and distribution data.
Why buy this report?
- Get a detailed picture of the Megatrends market;
- Pinpoint growth sectors and identify factors driving change;
- Understand the competitive environment, the market’s major players and leading brands;
- Use five-year forecasts to assess how the market is predicted to develop.
