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education and communities connected to health, beauty Premiumization as a megatrend embodies the power
and personal care. One such company is Helskinki-based to spend more on the things that matter, according to
CosmEthics, whose app empowers consumers to make Euromonitor. At the same time, consumers are expected to
safe cosmetic choices. Users scan a product barcode to re- scale back on products and services deemed less relevant,
veal hazard or allergy profile warnings and recommenda- creating attrition in segments that fail to address changing
tions specific to personal needs. priorities among consumers who choose to exploit
personal resources mindfully.
"The mission of CosmEthics is to promote cosmetic in-
gredient awareness, and help consumers make safe and Euromonitor identified three main trends that will define
suitable choices," said Irina Barbalova, Global Lead-Beauty premiumization as services that facilitate consumers' quest
and Personal Care Research at Euromonitor. for time, grant permission to indulge in smart luxury, and
help consumers build a "better me" either through health,
Food choices also factor prominently into this megatrend. experience or a sense of community.
"There's a greater demand for 'whole food' solutions to
common health problems, but also we're still trying to Megatrend: Shifting market frontiers
crack the code of delivery and meal kits, and personalized The retreat of the middle class and slower growth in
menus," said Michael Schaefer, Global Lead-Food and Bev- developed markets following the financial crisis has
erage Research at Euromonitor. "I think the manufacturer created a paradigm shift in the global economy. "We're
or retailer able to find that formula could unlock huge op- expecting this trend to continue, with emerging and
portunities." developing countries accounting for two-thirds of global
GDP by 2030," Boumphrey stated. She noted that companies
Brehmer noted that the definition of health has evolved to looking to expand globally will find opportunities in
embrace mental health and happiness in addition to physi- regions of Africa, second-and third-tier cities in China, the
cal health and wellbeing. "Even hotels are now designing Arctic and even outer space, to name several.
bigger spas and major workout areas, so it really is having
a broad impact," Brehmer said. Another related trend is the proliferation of convenience-
based stores strategically located in urban areas, where
An emphasis on ethical living is also expected to become population densities support local access to goods and
more mainstream. One caveat on eco- and ethics-con- services. Brehmer expects food and beverage, and health-
scious consumption is that price points matter. "If ethical related businesses with smaller footprints to perform well
goods aren't provided within an affordable price range, in urban centers.
then consumers still aren't motivated to translate this con-
sciousness into actual purchases," Boumphrey stated. Megatrends role in corporate culture

Megatrends: Middle class retreat, premiumization Understanding the fundamental market shifts underway
and then integrating megatrends into corporate culture
The global financial crisis of 2008 has had an indelible im- requires a thorough evaluation to identify key trends,
pact on the middle class, forcing many to retreat from con- scope market size, create prototypes and establish go-to-
spicuous consumption to optimize limited resources. In market strategies.
her research analysis, Boumphrey found that middle class
households in developed economies have not experienced Brehmer advises clients to administer megatrends in five
any significant improvements in their standards of living stages. The first step is to create a shortlist of megatrends
since the financial crisis presumably ended. to innovate against; most companies choose four or
five, based on immediate and long-term potential. Next,
Euromonitor has also seen a fundamental change in mid- determine megatrends to develop tactical insights on, and
dle class consumers who are attaching less importance map the success of recent launches. Third, quantify the
to the product/service itself than to having access to the impact, identify opportunities, and rank each megatrend
product/service. and its projected investment.

An Hodgson, Euromonitor's Income and Expenditure The next step is to map the company's current portfolio
Research Manager, believes niche businesses focused on and innovation pipeline against the megratrend needs
leasing and resale, product repair and refurbished goods, of tomorrow, identifying gaps that might be ripe for
and low-maintenance, durable goods will benefit from innovation. Finally, she recommends building a corporate
this megatrend, as will premium goods and services with culture that embraces megatrends and the requisite
clear value propositions, and businesses that split services periodic reviews and adjustments as trends evolve.
into sectors to leverage consumer preferences. Shrinking "If they're not thinking about it now, someone else is,"
middle class consumption in recent years has led to the Brehmer said. "That's the challenge."
sharing economy, glorified frugality, the thrill of the deal,
and trading up or down, all of which are expected to con-
tinue.

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