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EUROPECONSUMERTRENDS 2018

E D I T O R ’SN OT EHello and welcome to theconsumer trends that we believewill define the European region inthe coming year and beyond.Our trend predictionsare the product ofa methodology thatencompasses fourcomponents: we takeaccount of the pendingpolitical and legislativeevents and productlaunches due in 2018;the appetite amongstconsumers for theseevidenced by Mintelconsumer research;the momentum ininnovations we areseeing from our teamof global trend spotters;and the opinionsof Mintel’s expertindustry analysts.This year’s predictionsare in many waysreactions to theemerging challenges—environmental, political,technological andpsychological—we’reseeing across ourregion, but we areconfident that you canturn them to the goodof your business andto the benefit of yourfellow consumers.Best wishes forthe year ahead.Richard CopeSenior TrendsConsultantPAGE 5Sea ChangeOcean plasticfashion and recycledpackaging launches,ingredient bansand activism arefocusing consumerand governmentattention on maritimeconservation.PAGE 17ShareholdersHacks and data disclosurelegislation form a newbreed of consumerswho will hold on tight totheir data and demandsomething in returnbefore sharing it.PAGE 27TeenaidersCatherine CottneyManager of Trends,EMEATeens are increasinglydefined by anxietiesaround image, healthand work, and arelooking for brands toalleviate the pressureand help them buildboth their confidenceand prospects.PAGE 35AccountantsIn a world of post-truth politicsand unsubstantiated media,consumers are looking for brandsto court them with transparency,simplicity and evidence.

45SEA CHANGESEACHANGEOcean plasticfashion and recycledpackaging launches,ingredient bansand activism arefocusing consumerand governmentattention on maritimeconservation.

67SEA CHANGEWhat’s Happening In 2018?We expect that more andmore brands will offereducation and leadershipwith clean, safe andsustainable products thatdistinguish them from thecompetition as more foodand beauty brands seek tohighlight and safeguard thepurity and future supply oftheir ocean ingredients.Lobbying campaigns byGreenpeace will makeconsumers more awareof ocean plastic and itsimpact on wildlife andtheir own health. The UKgovernment’s ban on all‘rinse off’ personal careand cosmetic productscontaining microbeads, andScotland’s commitment toa deposit return schemeon plastic bottles, areinitiatives that manyEuropean countries wishto emulate, with Swedenset to do so for microbeadsby 2020. Politics will alsofocus European consumerattention on marineconservation, with Brexitnegotiations putting fishstocks on the agenda asthe UK withdraws fromthe London FisheriesConvention and CommonFisheries Policy in 2018.Government and lobbying campaignerswill make consumers more aware ofocean plastic and its impact on wildlifeand their own health.With Adidas making onemillion shoes from recycledocean plastic and Procter& Gamble committed tointroduce 25% recycledplastic across 500 millionbottles sold yearly on itshaircare brands, perceivedpolluters will be forcedto follow. Coca-Cola hasalready responded topressure by raising its 2020recycling target to 50%.More food andbeauty brands seekto highlight andsafeguard the purityand future supply oftheir ocean ingredients.

89SEA CHANGETrends in ActionProcter & Gambleplans to introduce 25%recycled plastic across500 million bottles soldyearly on its haircarebrands.Grandes OriginesSaumon Fumé d’Ecosse(Smoked Scottish Salmon)is marketed as beingselected from sitesknown for their qualityof water, heralding anew era of sourcing fromunpolluted areas.NegozioLeggero has 13stores stockingmore than1,500 packagefree productsacross Italy andSwitzerland.GanamosReciclando recyclingmachines rewardconsumers withpoints when theyrecycle materialslike paper or plasticbottles.In Spring 2017, Adidasdebuted their new editionsof its popular UltraBoostshoe, all made from plasticdebris found in the ocean.

10 11SEA CHANGEWhy ConsumersWill Buy Into ThisThe 267 species ofseabird and 61% ofturtles with plasticin their digestivetracts aren’t alone,with a third of thefish and shellfishhumans consumecontaining plastictoo, according toPlymouth University.The problem isescalating, with thevolume of oceanplastic predicted todouble in the nextdecade, accordingto the PlasticPollution Coalition.Lobbying isn’tabout to stop either,with Greenpeacehighlighting thatjust 14% of the600 billion bottlesproduced globallyin 2018 will berecycled. This isdespite the fact that,according to Mintel,66% of Polishconsumers preferto drink waterfrom a recyclablebottle. Meanwhile,two-fifths of Britsagree that pollutionlevels in the sourcearea of water area concern.Sustainability andthe environment arehigh on consumers’agenda, as Mintelresearch finds morethan half of UK fishconsumers would66% of Polish consumersprefer to drink water from arecyclable bottle.like suggestionsabout sustainablealternatives, whiletwo in five UKwomen aged 16-24would like to seemore eco-friendlyfabrics used inclothes. AcrossEurope, Mintel findsa quarter of Spanishand Germanconsumers agreethat being “betterfor the environment”is the number-onereason for buyingnatural and organicproducts; this isfollowed by arounda fifth of Italian andFrench consumers.

12 13SEA CHANGEBrands are responding tosustainability demands, asin Italy and Switzerland,Negozio Leggero has13 stores stocking morethan 1,500 package-freeproducts and, in France,Grandes Origines SaumonFumé d'Ecosse (SmokedScottish Salmon) ismarketed as being selectedfrom sites known for theirquality of water, heraldinga new era of sourcingUK consumer attitudes towards recycling products49% wouldbe interestedin buyingfashion itemsmade wholly/partiallyfromrecycledplastic72% would beinterested in buyingproducts withpackaging madewholly/partially fromrecycled plasticfrom unpolluted areas.While in Spain, GanamosReciclando combinesrecycling machines withincentives by rewardingconsumers with points whenthey recycle materials likepaper or plastic bottles. Themachine gives out moneyoff vouchers, discounts incertain stores and, in somecases, small amounts ofactual cash.79% believepeopleshould beincentivisedto recycleplastic73% would liketo see morefood/drink thatis guaranteed tobe sourced from(unpolluted)watersBase: 2,000 internet users aged 16 Source: Mintel Reports 2017

Where Next?Whilst plasticswon’t be whollydemonised (theyprolong shelf-lifeand prevent foodwaste) intensifiedeco-lobbyingwill producemore recyclableproducts. Expectto see incentivesand initiatives likesponsored ‘reverse’vending machines(such as thosewhich accept usedbeverage containersand return money tothe user) as well asmore governmentbacked variationson plastic-bagtaxes. We maywell see socialstigmatisationof plastic cupsand cling film,more pioneeringbrands innovatingwith soluble podpackaging, andmore retailersdispensing with itcompletely. In food,drink and beauty,we’ll see pure,unpolluted sourcingmainstream as aclaim and naturalexfoliators likesalt and sandchampionedalongside othersustainable marineingredients.Fashionable,premium oceanplastic products willpromote this trendin the coming year,but its consumeradoption will bedriven by healthand saving money,whilst for brands itwill become a normthat governmentsand lobbyistswill compel themto embrace.We may wellsee socialstigmatisationof plastic cupsand cling film,and morepioneeringbrandsinnovatingwith solublepod packaging.The world’sleading marketintelligence agencyWhat you need to knowabout consumers, markets andinnovation, now and in the future.How do we do it?Mintel’s global, specialist team of world-class analysts usethe most credible source of data, news and opinion. Theymine that data for innovation, trends and inspiration, so theycan give you a clear insight into what’s next.Credible DataInnovationTrendsLeading IndustryForecastingExpert Team50 years ofindustry experienceWhat’s next?ConsumersMarkets

16 17SHAREHOLDERSSHAREHOLDERSHacks and datadisclosure legislationform a new breed ofconsumers who will holdon tight to their data anddemand something inreturn before sharing it.

18 19SHAREHOLDERSWhat’sHappeningIn 2018?The data consumers aregenerating is escalating,but this data is creatingvulnerabilities, as highprofile hacks of Yahooaccounts and theWannaCry malware crisishave shown. In response,consumers will protectthemselves with softwareand behaviours learnedfrom the more streetwise,private approach ofyounger generations.At the same time,governments are providingprotection, with the UKseeking to emulate the EU’sGeneral Data ProtectionRegulation (GDPR)legislation, which fromMay 2018, will compelall businesses to seekconsumer consent, disclosetracking and offer the rightto be forgotten, when itcomes to data disclosure.This effectively reboots thedigital settings of the brandconsumer relationship andfrom now on brands willneed to proffer economicallyor personally compellingincentives for consumersto resume sharing theirinformation with them.Consumers will protectthemselves with softwareand behaviours learnedfrom the more streetwise,private approach ofyounger generations.

20 21SHAREHOLDERSWhy ConsumersWill Buy Into ThisMintel research revealsstrong consumer concernsaround both the tracking oftheir data and companies’ability to safeguard it.A meagre 8% of UKconsumers strongly agreethat banks can be trustedto keep personal data safefrom hackers/fraudsters.Meanwhile, two-thirdsof Brits worry abouthow brands track theironline activities.However, consumersare also open to dataexchanges in return forsavings, discounts andpersonalised offers. Forexample, over half of UKconsumers would be willingto share information from asmartwatch or fitness bandwith an insurance companyto help calculate the cost oftheir plan.UK willingness towardssharing financial data withdifferent providers75% Mymain bankBulgari has developedits own app to protectpersonal dataand passwords.41% Otherestablishedbankingprovider21% Otherbank that isrelatively newin the market28% Pricecomparisonwebsite17%Technologyfirms (egGoogle, Apple)Base: 2,000 internet users aged 16 Source: Current Accounts, UK 2017

22 23SHAREHOLDERSWearable devices andsmart TVs present majoropportunities here, butcompanies will need toincentivise consumersto raise their ownershiplevels as according toMintel, less than one in 10French, German, Italian andSpanish consumers own asmartwatch. Streaming TVdevice ownership remainslow too, with ownershippeaking at 13% in Italy andGermany (respectively),followed by 11% in Franceand 9% in Spain.Bud, a technology platformbased in the UK, links users’financial services togetherin a single interface. BulgariTHERO is a3D-printed desktopdevice that allowsusers to switchbetween encryptedcommunicationmethods simply byturning a dial.has developed its ownapp to protect personaldata and passwords—acustomised version ofWISeID from SwisseSecurity firm WISeKey.Meanwhile, THERO is aphysical desktop device outof Spain that gives onlineprivacy and protection atangible form.Bud enables users to view and interact withall their finances in one placeConsumersare open todata exchangesin returnfor savings,discounts andpersonalisedoffers.