Natural, clean, and sustainable beauty

•  Prioritizing sustaina­bility is one of the key asks from consumers towards beauty brands. According to WGSN, "as consumer expectations grow, brands will need to embrace sustainable business practices, especially when it comes to water scarcity and how it will impact product development."
• Additionally, the trend is expected to be driven by smaller brands that are not facing the challenges of scale which are oftentimes a major problem of larger beauty brands. According to the CEO of Proctor & Gamble, which includes brands such as Aussie, Always, and Garnier, switching to 100% organic and clean ingredients is not possible for businesses of their size.
• The main reason why natural, clean, and sustainable beauty movement is considered a trend for the next two years lays in the statistics which show that new sustainable brands currently attract the interest of 55% of customers.
• On top of that, 59% of consumers say they will try a product from a brand based on the fact that the brand markets itself as a clean brand. Moreover, 60% of consumers are specifically interested in trying natural brands.
•  WGSN explains that another proof of brands consciously deciding to join the natural, clean, and sustainable beauty movement is in the large efforts seen by beauty brands to streamline products by offering "better formulations featuring higher active ingredients and multiple benefits."
•  Brands that are embracing clean, natural, and sustainable beauty include Dr. Hauschka, Weleda, Lush, L'Occitane, and The Body Shop.
• Dr. Hauschka uses biodynamic farming methods to grow strictly plant-based organic ingredients for its products, and over 75% of Weleda’s products come from organic farming practices. Approximately 90% of Lush’s products are packaged in sustainable, recycled packaging, while The Beauty Shop actively provides access to better working conditions, higher quality education and health services to its farming workers in India.

Inclusivity in beauty

• The inclusive beauty movement has already swept the beauty and cosmetics industry by storm. In 2020 and 2021, the beauty industry is expected to launch expanded product offerings that will not only cater to more skin tones and hair types but also gender-fluid consumers.
• Additionally, the trend will cover a larger issue of including physical and mental needs in the beauty offerings by major brands.
• The main reason why inclusivity in beauty is considered to be a large trend is shown in the Ipsos study, where amongst statistics driving this trend, the following is specified: In the last year, consumers are putting a big focus on products positively reflecting their age (54%), followed by images that show reality and no photo-shopped perfection (51%).
• Embracing the beauty in all body sizes is another big priority (49%), and it is followed by embracing natural facial features (47%). Another large segment of the market is looking for products that will fit their race/ethnicity (42%), skin color (40%) and gender (40%).
•  Fenty Beauty, MAC Cosmetics, Make Up Forever, and Milk MakeUp are examples of large beauty brands that are embracing the inclusivity trend in their offering, mainly by expanding their shade ranges and offering age-appropriate products.

Research methodology

Plant-based meat and milk

• Description:
• The plant-based industry is growing due to the growing influence of flexitarians — those who choose to eat less meat, dairy, and poultry.
• The technology and techniques used to make plant-based food and beverages taste like the real thing are improving.
• Plant-based meat manufacturers have been successful in matching their products with real beef in terms of fat and protein content and taste.
• Why it's a trend:
• Sales of plant-based foods were up by 20% to $3.3 billion in 2018, making it one of the fastest-growing sectors in the food industry.
•  39% of Americans are trying to eat more plant-based foods.
• Plant-based milk remains the largest in the plant-based food category with sales of $1.6 billion in 2018, an increase of 9%.
• Sales of plant-based meats have reached $878 million.
• From 2018 to 2019, the plant-based retail market grew by 11%.
• Examples:
• This growth in the plant-based market has caused many fast-food restaurants to introduce their own plant-based food items.
• In October 2018, McDonald's introduced the P.L.T. (Plant Lettuce Tomato) sandwich, where the 'Plant' is a Beyond Meat patty. The burger is available in 28 locations in Canada to test if it will stay on the menu.
• Dunkin' Donuts introduced a meatless sausage by Beyond Meat in their breakfast sandwich. This sandwich is only available in locations across Manhattan.

Cannabis-infused Food and Beverages

• Description:
• Traditional and new liquor brands have introduced cannabis-infused beverages.
• One of the reasons this has become popular because Millennials and Gen Z are consuming less-inebriating beverages than previous generations.
• Apart from THC, companies have mostly been using another compound called CBD to infuse into their products. CBD doesn't produce the same hallucinogenic effects as THC (source 2). CBD is mostly found in hemp, which can be legally harvested nationally.
• Why it's a trend:
• According to a survey of chefs, 77% say that they see CBD drinks as the number one trend for 2019.
• There is a growing belief that CBD has health benefits such as treating insomnia, pain, anxiety, and seizures, although peer-reviewed research is yet to conclusively back that assertion.
• It is predicted that the CBD industry could reach $3 billion by the year 2021. Much of the growth should be fueled by a recently passed farm bill that legalized US-grown hemp.
• Examples:
• At a cereal bar in Colorado called The Cereal Box, customers can add a taste-free scoop of CBD powder to their cereal for $3.
• New Age Beverages Corporation is an organic and natural beverage company that is based in the US. They entered the CBD-infused beverage market recently by signing an agreement to develop and distribute Marley+CBD cannabis-infused beverages.

Fermented Food and Beverages

• Description:
• In the food and beverage industry, fermentation is the process of making lactic acid by involving natural bacteria to feed on the starch and the sugar in food.
•  Fermentation carries health-related benefits such as omega-3 fatty acids, probiotics, vitamin B, and enzymes.
• Why it's a trend:
• A major driver of this trend is the increasing awareness of the importance of gut health and overall health and wellness. 23% of shoppers seek food for a health benefit.
• Other drivers include millennial consumers who like new texture experiences and international cuisines. 40% of millennials like to experiment with new and unusual flavors.
• The increasing need for new flavors can be seen with the ordering of fermented foods like sauerkraut and kimchi. The more familiar sauerkraut has seen a decline in 2018, but the lesser-known kimchi has seen a rise.
• In the Netherlands, the fermented beverage market grew more than 40% each year from 2015 to 2017.
• Upserve, a restaurant management platform, analyzed their data and found that consumption of fermented foods was up by 149% in 2018. They found that one of the most popular fermented beverages is kombucha.
• Examples:
•  KÖE is a kombucha brand made by Stratus Group Beverage. Kombucha is a Chinese fermented tea drink that has an acidic and tart taste. With it going mainstream in Western markets, KÖE is being targeted at the vast majority of Americans who have never had kombucha.

Research Strategy

Increase of Autonomous Vehicles

• The automotive industry is growing, and industry innovation will lead to a superior self-driving vehicle.
• Features like adaptive cruise control and auto-parking, have given room for more advanced auto-driving features and allowed tech companies like Uber to start testing fully autonomous vehicles.
• The trend will require deep expertise in AI and machine learning-based on this automotive startups have partnered with machine learning leaders. Toyota has recently partnered with Nvidia to create a self-driving alliance.
• The trend is expected to bring increased personal safety, time-saving for drivers, mobility for nondrivers, decreased environmental harm and reduced transportation costs.

Why it's a Trend

• The global market for autonomous vehicles is projected to be worth $54.23 billion in 2019, and its value is expected to increase to $556.67 billion by 2026. This explains the high involvement of startups in the industry.
• According to KPMG, countries most ready for autonomous vehicles are USA, Netherlands, Norway and Singapore which recently welcomed an autonomous bus to his streets on March 5, 2019.
• Car manufacturers, mobility service providers and autonomous technology companies are struggling to be the first to achieve their vision of autonomous shared transportation.

Brands Leaning into The Trend

Electric Vehicles to Increase

•  Environmental factors have driven the growth of zero-emission vehicle technology. The popularity of cleaner and more environmentally-friendly electric vehicles and hybrid electric vehicles is increasing.
• Tesla, as a company has moved the needle forward for electrical capability, the battery technology has improved over time to be better, resulting in more extended range and faster charging.
• Although there has been a limitation in the production of only small cars, the electric-powered pickups and even semi-trucks are expected to arrive soon.

Why it's a Trend

• More than 270 ambitious startups are revving up the electric vehicle industry.
• It estimated we have more than 5.6 million EVs on the road today, which is 64% more than in 2018. It's determined by 2030, 55% of cars sold in Europe will be fully electric.
• Tesla, a manufacturer of the vehicles, is facing stiff competition as we have more than 43 confirmed model launches on the anvil in 2019.
• According to a research conducted by SMMT demand for electric vehicles had increased by 88.7% and the sector accounted for 8% of the overall market, this had been the highest figure it has ever achieved.

Brands Leaning to The Trend

•  Tesla is an example of a brand that leans on the trend.

Research Strategy

1. Focus on Sustainable Apparel

Description

• With a global focus that is shifting to create more environmentally conscious consumers, the apparel or fashion industry has taken a step forward to provide clothes that integrate better with a healthy and sustainable lifestyle.
• Apparel companies are leaving the fast-fashion model behind due to their impact on the environment and adopting sustainable practices for their materials, waste management, and supply chains.
• As a result of the sustainability efforts in the apparel industry, the markets for second-hand clothes, capsule wardrobe, rentals, clothes recycling, and Indian clothes, have also grown.

Reasons to Consider it a Trend

• Euromonitor named it one of the top three trends shaping the industry in 2019 and the Wold's market report for the apparel and footwear industry.
• Sustainable apparel has grown so much recently that it is now considered its own niche.
• According to McKinsey, this is one of the top ten fashion industry trends that will continue impacting in 2020, especially in younger audiences who are more environmentally conscious.

Brand/Company Examples

• Brands like Lewis and J. Crew are capitalizing on apparel rental thanks to people's drive towards more sustainable options.
•  JOOB Activewear is another brand that is investing in sustainable materials and a business model that is more environmentally friendly.

2. Digitalization and Technology

Description

• Consumers are increasingly seeking ways to acquire their products online thanks to the prices, free shipping, convenience, and experience, this reflects highly on the apparel industry, as it allows them to shop from a variety of brands from any place and at any time.
• Based on this preference toward online shopping, apparel brands and clothing retailers are looking for ways to make their e-commerce presence stronger and building omnichannel strategies.
• Additionally, there has been an increase in the number of start-ups companies entering the market and selling only through the internet, and most have never had a brick and mortar shop.
• The facility to attract online apparel consumers has also increased because of social media advertising, social media influencers, and subscription boxes.
• Digitalization has impacted many consumer goods industries, like apparel, beauty, and retail.

Reasons to Consider it a Trend

• Euromonitor named it one of the top three trends shaping the industry in 2019 and the world's market report for the apparel and footwear industry.
• According to the analysis presented by Vision Critical, digitalization is one of the most significant trends in the retail apparel industry niche.
• Digitalization is also considered one of the most relevant trends in the sustainable apparel niche.

Brand/Company Examples

•  J. Crew recently hired Starbucks executive VP as their new president and CEO to address the apparel retailer's needs to innovate their digital strategy. This decision has helped the company to leverage its brand and create a better customer experience and digital platforms.
•  Nike is an athletic apparel brand that has recently embraced the importance of a digital strategy and appointed a chief digital officer to take charge of the products and services offered in Nike+, Nike.com, and the other digital platforms of the brand.

3. Personalized or Tailored Products and Experience

Description

• In an era where customers have a great number of options available, apparel brands and retailers are looking to personalize their shopping experiences, products, and interactions to separate themselves from their competitors.
• Apparel companies are creating products that meet their clients' values and needs to earn their loyalty, engaging, and interacting with them, which is especially important for millennials.
• With machine learning, retailers can analyze and collect data from their clients, getting a better understanding of their motivations, needs, and the type of shopping experience they prefer.
• Instead of following the monolithic approach, retail companies in the apparel industry are seeking to offer options for different client's needs, based on activities, plus-size options, etc.

Reasons to Consider it a Trend

• Euromonitor named it one of the top three trends shaping the industry in 2019 in its world's market report for the apparel and footwear industry and one of the most relevant trends in the sustainable apparel niche.
• Based on the analysis presented by Vision Critical, personalization is also known as tailoring the experience to the client's needs, and it is one of the top three trends in the retail apparel industry niche.
• With the closure of over 3,300 apparel stores and more than 700 department stores in the US, apparel companies are jumping on this trend with the hope of remaining relevant to their audience.

Brand/Company Examples

• One of the largest apparel retailers, Walmart, has redesigned its apparel approach and incorporated plus sizes, private brands, and more clothing variety in Walmart.com and in their store, following the lead of Target and Amazon.
•  Nike, Dolce & Gabbana, Adidas, and Arket are also showing their understanding of their clients' needs by personalizing clothing items that resemble their audiences' values through messaging or donations based on social movements such as LGBTQ, gun violence, or feminism.

Research Strategy