Profiting From Consumer Mega-Trends in the UAE and Saudi Arabia: Health

Published by: Datamonitor

Published: Sep. 16, 2009

Table of Contents

Overview

Catalyst

Summary

EXECUTIVE SUMMARY

Health concerns in the Middle East are gaining momentum and increasing in scope

Consumers are acting more holistically in the pursuit of general wellbeing

Health conscious consumers are increasingly prone to, and acting upon, product safety concerns

Ethical Wellbeing reflects a convergence of ethicality and emotional wellbeing

Financial Wellbeing reflects how consumers value the peace of mind that emanates from financial security

Stress is a common theme in modern lifestyles as consumers adopt stress reduction strategies in their pursuit of wellbeing

Jaded Society: overcoming fatigue and lethargy

Visual Culture: appearance consciousness continues to characterize an image conscious society

Sterilized Society: the escalating obsession with hygiene, cleanliness and immunity

Consumers are embracing tools that enable more informed health-driven choices

Moderation and avoidance

Positive nutrition

Fitness for wellbeing: getting active and using supporting products

Table of Contents

Table of figures

INTRODUCTION: THE IMPORTANCE OF TREND-TRACKING

Tracking consumer mega-trends is fundamental to long-term success

Trend-tracking insight 1: mega-trends can be classified in two ways according to desirable product/service benefits and societal complexities

Trend-tracking insight 2: trends are aligned with pre-existing, but evolving human values, attitudes, needs and behaviors

Trend-tracking insight 3: mega-trends can be broken down into trends and sub-trends to provide structure and clarity at a time of 'information overload'

Trend-tracking insight 4: manufacturers, retailers and researchers/futurologists perpetuate trends

Trend-tracking insight 5: adopting a broader perspective to trend-tracking facilitates better decision making by overcoming 'category myopia'

Trend-tracking insight 6: trends have longer-term implications than fads and can be categorized by evolvement

Trend-tracking insight 7: for every trend there is a 'counter-trend' while 'trend-crossover' is also and important phenomena

Takeouts and implications: a trend framework boosts the quality and frequency of insight generation ensuring maximum return from the broader market research processes in place

THE FUTURE DECODED: DECIPHERING THE HEALTH MEGA-TREND

MEGA-TREND SYNOPSIS: Health concerns in the Middle East are gaining momentum and increasing in scope

TREND: Middle Eastern consumers are acting more holistically in the pursuit of general wellbeing

SUB-TREND: Middle Eastern consumers are taking more self responsibility for, and placing greater importance on, their health

In both the UAE and Saudi, health is becoming an increasingly important issue as health reforms improve chronic disease awareness and accessibility to healthcare services

Key takeouts and implications: health is set to stay at the top of the agenda for the years ahead

SUB-TREND: Middle Eastern consumers are adopting a broader ""wellness"" orientated lifestyle

Consumers in the Gulf are adopting a ""wellness"" oriented lifestyle

Key takeouts and implications: the pursuit of wellness/wellbeing is best thought of not as a trend in its own right, but as an umbrella of related trends and behaviors that must be reflected in products and marketing

TREND: Health conscious Middle Eastern consumers are increasingly prone to, and acting upon, product safety concerns

SUB-TREND: Intensifying product safety anxieties affect many Middle Eastern citizens

Product safety is an issue gaining prominence in the Gulf region

Key takeouts and implications: escalating health attentiveness has been matched by growing concern about the safety of products

SUB-TREND: Consumer sensitivity is a growing phenomena as reflected by allergen and intolerance influenced consumption among Middle Eastern consumers

Consumers in the UAE and Saudi Arabia are highly conscious of the food and drinks they purchase due to issues with tolerance or allergies

Key takeouts and implications: consumer sensitivities such as allergies and intolerances create opportunities to target specific segments

SUB-TREND: 'Fear-driven avoidance' means some consumers are outright rejecting products with what are perceived as harmful ingredients or where safety is compromised

Key takeouts and implications: consumers will be less forgiving when products compromise their safety

SUB-TREND: Middle Eastern consumers are opting for local products and products produced in countries with strict phyto-sanitary regulations

The average cconsumer in the UAE and Saudi-and in the Gulf generally-favours locally produced food; however certain consumer sub-groups show no preference for local produce at all

Key takeouts and implications: while globally, safety concerns will be one of a number of drivers ensuring that 'local' products will continue to gain favourability, in the UAE and Saudi the picture is much more complex

SUB-TREND: Middle Eastern shoppers increasingly value reassurances and transparency about how products are produced

UAE and Saudi consumers want to know where and how their products were produced

Key takeouts and implications: reassuring consumers will become a necessity to overcome trust voids and build stronger brands

TREND: Ethical wellbeing reflects a convergence of ethicality and emotional wellbeing

SUB-TREND: Direct and indirect consumer altruism shapes consumer choices

Ethical and/or environmental considerations heavily impact Middle Eastern consumers' purchasing activities

Key takeouts and implications: ethics, environmentalism and health are more inter-related than many come to realize

TREND: Financial wellbeing: and the 'economies of happiness' influence emotional and physical wellbeing

SUB-TREND: Consumers value the peace of mind that emanates from financial security

Wealth is a particularly important determinant of emotional wellbeing in the Gulf, partially because personal identity is highly dependant on consumerism

Key takeouts and implications: financial anxieties increase consumers' focus on the short-term

SUB-TREND: Financial moderation: Middle Eastern consumers are exercising more financial prudence and control

The downturn has prompted Middle Easterners to manage their finances more closely and adjust lifestyles

Key takeouts and implications: growing levels of financial moderation will place additional pressure on the growth of upscale premium products and further intensify value consciousness

TREND: Stress is a common theme in modern lifestyles as Middle Eastern consumers adopt stress reduction strategies in their pursuit of wellbeing

SUB-TREND: Consumers are confronted with the need to confront and manage tension and anxiety

Stress and tension have increased dramatically in the UAE and Saudi Arabia in the last six months

Key takeouts and implications: the prevalence of stress and anxiety in consumers' lives suggests that there are ongoing opportunities to position products as 'antidotes to reality' and which give consumers a feeling of being in control

SUB-TREND: The pursuit of work-life balance represents the ongoing conflict between a desire to maximize leisure time, maximize occupation success, and maximize leisure time

UAE and Saudi consumers are unhappy with their work-life balance

Key takeouts and implications: opportunities exist for brands to help consumers navigate the ongoing problem of work-life balance

SUB-TREND: Pampered relaxation: consumers are actively seeking moments of downtime

Consumers in the Middle East continue to want relaxation therapies and downtime in their everyday lives

Key takeouts and implications: all FMCG products have the potential to align with the pampered relaxation trend, particularly personal care

SUB-TREND: 'Mood foods' reflect consumers' tendency to comfort and reward eat

UAE and Saudi consumers are interested in, and actively buying, food and beverage products designed to aid relaxation, concentration and provide emotional comfort

Key takeouts and implications: a category of food and beverages based on ingredients that make individuals happier, calmer, livelier and even more intelligent is a potentially compelling proposition for those who are becoming more aware of protecting their mental/emotional wellbeing

TREND: Jaded society: overcoming fatigue and lethargy is a common problem for contemporary Middle Eastern consumers

SUB-TREND: Many individuals across the globe lack energy and vitality in their day-to-day lives

Satisfaction with energy levels in the Gulf region is similar to satisfaction levels elsewhere

Key takeouts and implications: energy boosting products can help offset consumers' diminishing energy levels caused by hectic lifestyles

SUB-TREND: 'Pick-me-up consumerism' captures the situation whereby consumers are increasingly attentive about their alertness and are opting for products that deliver energy and performance benefits

Consumers in the Gulf show high levels of interest in food and beverages delivering antidotes to fatigue

Key takeouts and implications: consumers across the globe are highly interested in functional products that boost mental and physical wellbeing

TREND: Visual culture: appearance consciousness continues to characterize an image conscious society

SUB-TREND: The high prevalence of appearance and body shape anxiety is at the core of 'appearance based wellbeing' (or lack of it)

Personal image is a highly important part of life in the Gulf

Key takeouts and implications: appearance concerns impact consumers' emotional and physical wellbeing so looking good has arguably never been more important

SUB-TREND: A more holistic pursuit of beauty through more diverse appearance management tactics is occurring in the Middle East

The Gulf consumer is typically interested in the idea that food and beverages improve their appearance

Key takeouts and implications: health, wellbeing and beauty are becoming inextricably linked in consumers' minds

SUB-TREND: Middle Easterners increasingly adopt structured and sustained beauty regimes

Beauty regimes are common in the Middle East with the use of fragrances particularly widespread

Key takeouts and implications: consumers attach considerable importance to their oral, skin and hair health respectively which drives spend and the adopting of beauty regimes

SUB-TREND: The polarization of beauty ideals/attitudes reflects the conflict between natural beauty and more 'manufactured appearances'

Key takeouts and implications: manufacturers are retailers must adopt diverse product portfolios on order to meet the polarized beauty ideals among global consumers

TREND: Sterilized society: the escalating obsession with hygiene, cleanliness and immunity

SUB-TREND: Consumers are becoming pre-occupied with boosting self-immunity

Gulf consumers are highly interested in food and beverages that boost the immune system

Key takeouts and implications: consumer lifestyles reflect the burgeoning interest in immunity boosters

SUB-TREND: Healthy nesting: consumers are ensuring hygiene and purity within their living spaces

Key takeouts and implications: consumers generally recognize the broader health and wellness benefits associated with clean living environments

SUB-TREND: Personal cleanliness matters in a society that values purity

There is a large potential for growth in the personal hygiene market in the Gulf region

Key takeouts and implications: leverage the wellness factor in the marketing of personal hygiene products

TREND: Gulf consumers are embracing tools that enable more informed health-driven choices

SUB-TREND: The 'democratization of health' information has facilitated more self reliance among consumers globally

Increasing accessibility of health information has enabled Gulf consumers to make health-driven choices

Key takeouts and implications: consumers are continuing to turn to the media to get their health information, but need to feel that they can trust what they are reading

SUB-TREND: Formulation attentiveness: knowing about and being influenced by health information is becoming more widespread

Consumers are paying more attention to nutritional information available on food and drink packaging

Key takeouts and implications: consumers are demonstrating their increasing knowledge of health by making consumption choices based on labeling and professional advice

SUB-TREND: Information overload: burdened by too much information consumers are using information short-cuts to make informed, but simplified choices

In Middle East manufacturers and distributors must ensure that nutritional information is easily comprehensible and targeted

Key takeouts and implications: product formulation is a battleground for industry players, so key benefits must be clearly communicated to consumers

SUB-TREND: Information overload: gaps in health awareness and understanding

Consumers in the Gulf region are dissatisfied with the clarity of the nutritional information available on food packages

Key takeouts and implications: confusion is a barrier to consumption, and therefore should be eliminated to increase consumer confidence

SUB-TREND: Personalized nutrition and nutrigenomics are emerging themes and reflect a crossover between the health and individualism mega-trends

Key takeouts and implications: personalized nutrition is appealing to consumers but care must be taken not to take them out of their comfort zones

SUB-TREND: Personalized beauty regimes are still relatively niche but are gaining traction as situational and personally adaptive beauty solutions are increasingly sought

Key takeouts and implications: demand for personalized beauty is growing in all regions as consumers become more 'me' orientated

TREND: Moderation and avoidance: disciplined consumerism

SUB-TREND: Food stress and anxiety is a growing problem among consumers who feel pressurized to make 'better' dietary choices

Consumers in the Gulf region feel guiltier about snacking in-between meals

Key takeouts and implications: consumers' aims of moderated consumption and healthier choices are confused by contradictory information and the tendency for 'carefree consumption' to occur

SUB-TREND: Formalized dieting: regimented eating for weight management

Specific diet plans are more common in the Gulf than globally

Key takeouts and implications: consumers experience difficulties in pursuing sustained dietary plans

SUB-TREND: Dietary control: exercising dietary restraint is a key manifestation of the moderation trend

A significant sub-set of consumers are trying to eat smaller portions sizes

Key takeouts and implications: CPG players must answer consumers' needs for dietary control

SUB-TREND: Satiety: appetite control is a developing moderation concept with much potential

The potential for 'satiety inducing' products is significant in the Middle East

Key takeouts and implications: products which provide a feeling of satiety have significant potential, including in the Middle East

SUB-TREND: Vegetarianism and meat reduction have spread among consumers, feeding the market for meat alternatives

Key takeouts and implications: respond to consumers' meat reduction behavior with meat alternatives and responsible portion control marketing

SUB-TREND: Mealtime fragmentation: skipping meals is a widespread consequence of modern consumers' time-pressured lives and unhealthy routines

Key takeouts and implications: a gap exists between consumer attitudes towards main meal consumption and actual behavior

TREND: Positive nutrition: consumers are eating and drinking for wellbeing

SUB-TREND: Eating for wellbeing: changeable dietary routines are occurring in the Gulf region as dietary patterns increasingly take into account health considerations

UAE and Saudi consumers are interested in eating for wellbeing

Key takeouts and implications: consumers are willing to change their dietary habits

SUB-TREND: Embracing diet diversity: a more balanced and varied diet

UAE and Saudi consumers are trying to eat fresh produce with a high nutrient content

Key takeouts and implications: consumers will not compromise on freshness and are actively seeking products which provide them with their daily vitamin and mineral needs

SUB-TREND: The popularization of functional foods is also becoming apparent in the Middle East

UAE and Saudi consumers find added nutrients in food and drinks appealing

Key takeouts and implications: regional consumers actively seek functional foods with 'added' health benefits

SUB-TREND: Being hydrated: drinking adequate quantities of water

UAE and KSA consumers recognized the importance of hydration

Key takeouts and implications: the need for instant and continuous hydration has grown in consumer importance

TREND: Fitness for wellbeing: getting active and using supporting products

SUB-TREND: Getting active: consumers increasingly feel a sense of obligation when it comes to exercise

UAE and Saudi consumers are surprisingly happy with their level of physical fitness

Key takeouts and implications: consumers are surprisingly happy about their current levels of physical fitness

SUB-TREND: Sports nutrition: opting for performance and recovery supporting products

Key takeouts and implications: the market value of sports nutrition products is increasing, mainly driven by Lifestyle users

APPENDIX

Definitions

Methodology

Further reading and references

Ask the analyst

Datamonitor consulting

Disclaimer

Abstract

• Detailed trend analysis outlining what constitutes ‘value’ for consumers (trends are, after all, a reflection of what’s important to consumers)
• Offers UAE and Saudi Arabian category insights, benchmarked against global sentiment, to cater for contextualized regional specific information needs
• Covers all major FMCG sectors, but also with applicability to wider consumer goods audiences
• Part of Datamonitor’s mega-trend report series which outline the most important issues shaping current and future buying behavior

• Understand the significance of the different health-aligned trends across FMCG sectors to help support market diversification plans
• Save time and gain deep insight by using this 'one-stop-shop' resource which offers a clear and up-to-date framework for understanding MENA consumers
• Access data from 2009 primary research to increase the likelihood of being ‘on-trend’ with NPD and marketing activities in the MENA region

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