TrendSights Analysis: Risk Aversion - How to accommodate the concerns of risk-averse consumers

TrendSights Analysis: Risk Aversion - How to accommodate the concerns of risk-averse consumers


The Risk Aversion trend refers to the rising consumer tendency towards products that assist them in mitigating risks arising from products, their environments, and their financial situations. Brands should seek to support the four strategies that consumers use to mitigate risk: avoiding certain ingredients, protection from environmental irritants, assurance of product quality, and cost saving. This trend is likely to grow as consumer sensitivity to risk grows.

Consumers are concerned about the variety of hazards that exist in day-to-day life. This concern spans the impact of ingredients in FMCG products on their health, potential irritants in their environment, as well as political and economic uncertainty. FMCG manufacturers can tailor their products to respond to these needs - helping consumers reduce risk in their lives. Risk-averse consumers, however, are hesitant to trust brand claims. Brands must thus also build credibility if they want their natural or risk-reducing products to appeal to the consumers.

Brands can appeal to risk-averse consumers in several ways: reducing or limiting the use of ingredients perceived as having a negative impact on consumer health and wellbeing, offering products that protect consumers from environmental irritants such as pollution and bacteria, building consumer trust in the brand through engagement and third-party certifications, and offering price-saving products that help consumers deal with the financial uncertainty caused by pervasive political and economic instability.

The report TrendSights Analysis: Risk Aversion examines the impact of consumer risk aversion on FMCGs. It examines why this trend is increasingly important, who the target audience is, their preferences, and how FMCG brands can best capitalize on this trend. Finally the report looks at what the future of the trend will be.

Companies mentioned in this report: L'Oreal, Marks & Spencer, Gippsland Dairy, La Roche Posay, ZO Skin Health, Origins, Nexba, Purina Beyond, Presha Fruit.


  • 62% of consumers would prefer reduced chemicals/processed ingredients over increased functionality in food and drink.
  • 58% of consumers are concerned about the impact of pollution on their health and appearance.
  • 62% of parents are more likely to trust blogger/user reviews over brand claims.
Reasons to buy
  • Understand the top concerns of risk-averse consumers.
  • Understand where these consumers turn to for information and which sources they perceive as most reliable/trustworthy.
  • Understand the main opportunities within this trend and how this trend is affecting a variety of industries.
  • Understand how other brands are designing products to cater to this trend.

Executive Summary
Trend snapshot
What next?

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