CPG Marketing Trends: Fall 2021 Edition
There’s never been a better time to shop for food and drink online. As work-from-home becomes the new normal, once ordinary pantry items like condiments and snacks have become the new post-on-Instagram badge brands. Our favorite snack oracle Andrea Hernandez over at Snaxshot coined fun terms like “pantryshot” and “shelfie” to describe society’s newfound fascination with sexy product design and cult kitchen ingredients.
In some ways, this has been a welcome change. For one, the rise of CPG’s has rendered the grocery store “ethnic aisle” as obsolete. These days, there’s a DTC brand for every ingredient, from Vietnamese coffee and Taiwanese tea to Afghan saffron and Indian achaar. But with so many new products, so many niche consumer groups, and constantly-changing technology, it’s also getting harder to keep up with important macro trends across the digital marketplace. Here, we’re sharing our notes and CPG trend observations for Fall 2021.
1. Subscription-based services will continue to rise in popularity as consumers find ways to enjoy stay-at-home convenience and cooking.
At the end of 2020, global meal kit delivery services were worth an estimated $10.26 billion dollars and it’s projected that through 2028, the compound annual growth rate could be 13%. This points to a broader lifestyle shift. 7 in 10 consumers plan on cooking at home even after the end of the pandemic.
No, restaurants aren’t over (thankfully), but more and more, people are taking it upon themselves to cook a fabulous meal at home. Beyond expanding delivery services, digitally-savvy restaurants have an opportunity to think outside the menu to continue reaching consumers in their own kitchens. These days, you can buy instant noodles from Momofuku and pasta sauce from Carbone. It’s hard to know where Momofuku the restaurant stops, and where Momofuku™ the Brand begins.
2. The “ethnic aisle” is becoming a thing of the past.
As the New York Times recently reported “ethnic aisles” are becoming a relic of the past with both grocery stores and CPG companies rethinking the dynamics of having specific ingredients relegated to an amorphously defined section of the supermarket. Interestingly, the article also notes that there’s a persistent desire for traditional and cultural ingredients — what’s shifting isn’t demand for the ingredients but rather, a more nuanced expectation for how they are contextualized and presented.
This is where online stores offering niche goods can step in. Kim’C Market has a myriad of kits and ready-to-cook premium Korean food products that can tap into these consumers with specific tastes who are eager to find the balance between convenience and self-sufficiency.
Kim’C Market is a 100% online retailer of premium Korean goods.
3. As it turns out, doing good is good for business.
For increasingly discerning consumers, quality doesn’t mean fancier. It also means ethically produced — not just from an environmental perspective but also in terms of building sustainable community structures. A GreenPrint study found that 64% of Americans would choose to spend more on sustainable products and 81% of consumers believe sustainability is more than just a buzzword.
However, there seems to be a disconnect when it comes to branding — the desire for sustainable brands is strong but not enough companies are doing the work to get their message across. Though 78% of people have a higher likelihood of purchasing an item that carries a label stating it’s environmentally friendly, 74% reported having trouble identifying whether an item is eco-friendly or not. While sustainability clearly matters to a large swath of consumers, some people need more direction and guidance from the brands themselves.
That’s why we’re proud to work with Hanoi-based Sông Cái Distillery, which has done a great job of highlighting how their award-winning gin is making a positive impact. Founded by Vietnamese-American sustainable agriculture visionary Daniel Nguyen, Sông Cái approaches sustainability on a human level. They source their botanicals exclusively from Vietnamese highlands’ ethnic minority communities like the Hmong and Red Dao — while also investing back into these underserved rural communities with fair wages, reforestation programs, educational assistance, and shared farming equipment.
Founder Daniel Nguyen works with rural foragers and farmers to source botanicals for Sông Cái gin.
4. Tastes are increasingly “refined” not only in food — but also for digital experiences.
For instance, a Deloitte trend survey shows that 66% of consumers value “well-designed technology” and 63% respondents predict that their tech usage will increase after the COVID-19 pandemic. In short, there’s a chance for companies to up their game by utilizing digital platforms to get their conscious messaging across. You don’t have to be on every platform, but even just one or two can make a huge impact. Find what works for you.
5. RTD cocktails continue to boom.
2021 has been a huge year for Ready To Drink (RTD) cocktails with both legacy brands and up-and-comers getting in on the action. The RTD industry had an estimated worth of $714.8 million in 2020 and it’s set to have a compound annual growth rate of 12%. As the industry expands, there’s a space for brands that value connoisseurship.
Brooklyn Gin has a variety pack of gin & soda canned cocktails with hibiscus pair, lime, and cucumber flavoring — all using fresh ingredients and real gin. This sets it apart from the numerous RTD brands which are using neutral grain bases and artificial flavorings. We are happy to work with them to get their message across that in fact, quality and convenience can go hand in hand.
6. RTD coffee on the rise, while whole bean coffee consumption falls.
RTD coffee options are growing in popularity. According to the United States National Coffee Association, traditional whole bean coffee consumption is decreasing while RTD beverages and single-serve pods are on the rise. In their survey, 22% of respondents reported having an espresso-based beverage the previous day.
Omni Bev is uniquely positioned to be a leader in RTD Vietnamese coffee cold brews. They offer a myriad of variations, ranging from traditional Vietnamese coffee to coconut to coconut-matcha — all of them made with premium, plant-based ingredients . While their RTD Vietnamese coffee cold brews perform better in grocery stores and convenience stores, their portable French Press and Phin Filter are geared for e-commerce.