Trends, Trends, Trends

Part
01
of four
Part
01

Health and Beauty Trends

Two trends in the health and beauty industries include natural, clean, and sustainable beauty prioritization, and inclusivity in beauty. The description of each brand and examples of companies have been compiled in each trend's sub-section below, while the criteria for including each trend has been summed up in the research methodology.

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

To identify two beauty industry trends that are expected to take center stage in 2020 and beyond, we looked into market reports for the beauty industry. We identified two market reports that are specifically focused on identifying trends for the beauty industry in 2020 and 2021. The first trend report is titled "Big Ideas in Beauty: The five need-to-know strategic ideas that will shape the beauty industry in 2021" and is published by WGSN, a trend forecasting company of parent organization Ascential with over 20 years of experience. Due to WGSN being a trend analytics and forecasting company, the trends reported by it are considered to be credible and have been repeated by different industry publications in their articles. The second trend report is titled "With sales mixed and disruption rampant, what is the future of beauty?" and it is published by Ipsos, one of the biggest global market research and consulting firms in the world. The report was referenced by several business publications, including Forbes. As trends identified are repeated in both reports, we established this as the criteria for including the trends in the beauty industry in the research above.
Part
02
of four
Part
02

Food and Beverage Industry Trends

Three trends that can be seen in the food and beverage industry are plant-based meat and milk, cannabis-infused food and beverages, and fermented food and beverages. Plant-based foods have been growing thanks to the growing taste for non-dairy milk and meat alternatives provided by companies such as Beyond Meat and Impossible Meats. Cannabis-infused food and beverages have risen in popularity due to the growing awareness of CBD, and fermented food and beverages are very popular in Europe but are growing in the US with beverages such as kombucha. These points are discussed in greater detail below.

Plant-based meat and milk

Cannabis-infused Food and Beverages

Fermented Food and Beverages

  • Description:
  • 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

To identify food trends, we first looked at trends defined by major food publications and experts such as Rosseto, Food and Drink Resources, Institute of Food Technologists, and Forbes. We looked across these sources and found the most common trends mentioned that affected both the food and beverage industries. After doing this, we did some more research into each trend to verify that they have been trending in recent years. We did this by researching other food publications and experts, along with news sources such as NBC and USA Today. Each trend we found is very new, meaning they haven't started significantly affecting the global food market until 2018.
Part
03
of four
Part
03

Automotive Industry Trends

Two trends in the automotive industry are; increase in autonomous vehicles and increase in electric cars. Argo AI, Waymo and Telsa are some of the brands in forefront of the trends.

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

Some examples of brands that are leaning to this trend include Waymo and Argo AI.

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

To provide two trends in the automotive industry, your research team began by searching for experts opinions regarding the trends in the industry by leveraging their blogs such as 5iQ, Epicflow. Based on that, we were able to find current trends according to industry experts. We also looked at news articles such as Forbes, CBT. We were able to find trends that we had encountered in the blogs. We choose the trends that were mention in industry expert blogs and media sources. The trends were selected based on the frequency of mentions two or more source, to ensure we decided trends that were considered trends by experts and the industry at large.
Part
04
of four
Part
04

Apparel Industry Trends

Three trends shaping the apparel industry are the drive for sustainability, digitalization of processes, and personalization of the products and experiences.

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

To identify three trends in the apparel industry, we examined the main industry and all its niches, including fashion, e-commerce apparel, retail apparel, sustainable apparel, and apparel trading, among others. We combined different articles and analyzed from the industry and focused on ongoing trends in 2019 and expected trends for 2020 from Vision Critical, Linch Pin SEO, Retail TouchPoints, Just Style, McKinsey, Bazaar Voice, Shopify, PixelPool, Reuters, Euromonitor, Markets and Markets, etc.

From the lists of trends found in the industry, we included the three trends that were repeated the most across all sources.
Sources
Sources