Consumer Behavior Trends

The most expensive mistake in business is assuming your customers will never change. Last year, something shifted in Indian retail. Gen Z (377 million) overtook millennials (356 million) to become our largest consumer group, influencing $40-45 billion worth of apparel and footwear purchases. But they're not shopping at the stores we built for them. [Et Retail] Brands watched their growth collapse in just 12 months. → ZARA fell from 40% to 8% growth, [Et Retail] → Levi Strauss & Co. crashed from 54% to 4% growth [Et Retail] → H&M dropped from 40% to 11% growth [Et Retail] Here's why the growth has slowed down: 📌 Gen Z discovered new brands like Freakins and Bonkers Corner, offering trendy clothes at ₹500-800 📌 They chose self-expression over brand loyalty 📌 70% of their shopping moved online, heavily influenced by Instagram 📌 They demanded inclusive sizing (XS to XXL) and unisex options that legacy brands ignored Take FREAKINS, which clocked ₹25 crore in FY2023, or Bonkers.corner, clocked ₹100 crore. [The Economic Times] [Et Retail] These brands understood what Gen Z wanted: crop tops, baggy clothes, Korean pants, and oversized tees at prices that let them experiment with three different outfits daily. Body positivity isn't a marketing campaign for this generation. It's how they think. When they couldn't find the sizes or styles they wanted at premium stores priced at ₹1,200-1,500, they simply went elsewhere. Myntra saw the shift and launched FWD with ₹500 price points. The result was explosive: 100% year-on-year growth and 16 million Gen Z users, who now represent one in three e-lifestyle shoppers. [Et Retail] Legacy brands bet that Gen Z would "grow up" and pay premium prices. Instead, 377 million young Indians chose values over logos. The most expensive mistake in business? Assuming your customers will never change. What changes in your customer base have surprised you recently?

I've been reflecting on one major trend from last year that I feel will be hard to ignore in 2025: Gen Z’s relationship with brands and social media. This generation doesn’t just consume content, they drive it. And they do so with a level of authenticity and transparency that demands our attention. For Gen Z, brand loyalty isn’t built on flashy ads or influencer endorsements alone. It’s about values. It’s about knowing what the brand stands for and aligning with causes they care about: be it sustainability, inclusivity, or social justice. Here’s how I’ve been thinking about this shift as an entrepreneur: For Gen Z, being true to themselves is really important. They want brands that embrace uniqueness and support personal expression. To connect with them, we need to be authentic and offer products and messages that let them express who they really are. Social Media is the New Word of Mouth: If you’re not engaging in the conversations Gen Z is having on social media, you’re missing out. They trust their peers and online communities more than traditional advertising, and their feedback is immediate and powerful. Experience Over Projection: For this generation, it’s not just about seeing an ad but engaging with a brand in a meaningful way. Whether through personalized experiences, interactive campaigns, or exclusive content, creating a connection is more valuable than ever. Gen Z is not just shaping the future of business but is redefining what it means to build loyalty and trust. Is your brand ready for this shift?

India’s food landscape is shifting fast. The recently released Godrej Food Trends Report 2026, built on inputs from hundreds of industry experts, lays out clear trends that F&B brands can’t afford to ignore. From an F&B perspective, here’s what brands need to internalise - + Savoury protein is the next big format → Sweet protein has hit fatigue. The pivot is toward namkeen - bhel bars, high-protein kebabs, street-food-flavoured protein snacks. Backed by new manufacturing tech, this category is primed to scale. + Fibre is the new protein → ‘Fibremaxxing’ is going mainstream. Gut-health awareness, GLP-1 diet influence, anti-UPF sentiment - all pushing in the same direction. Fibre-fortified snacks and RTE products have a real runway. + Snacking needs a mood brief, not just a taste brief → Mindful indulgence is what drives the next generation of snack loyalty, like nostalgic flavours, mood-enhancing cues. + Beverages → Savoury-forward cocktails - fat-washed, fermented, umami-rich - are redefining the bar occasion. For beverage brands, the brief is shifting. Complexity and cultural storytelling over sweetness and high ABV. + Q-commerce is reshaping home cooking → ‘Assisted cooking’ - quality base preps + consumer-finished dishes - is a product innovation white space that didn’t exist three years ago. + Flavour boldness is non-negotiable → India isn’t chasing global fads. It’s doubling down on teekha-chatpata roots. Innovation that plays it safe on flavour will get ignored. + Sweets & desserts → Mithai is going Indo-modern - texture mashups, western influences, multi-sensory indulgence. The traditional sweet is being reinvented. + Provenance sells → GI tagging, micro-region storytelling, and women-led agri sourcing are becoming premium brand assets - not just CSR footnotes. In today’s world, consumer signals - expressed and otherwise - are multiplying fast. Brands that read them early and build them into innovation pipelines won’t just keep up. They’ll own the shelf. #trends

Time To Become A Market Maker Q2 results are now all out. As usual, here is our quarterly take on the world largest FMCG companies results: 1) Our predicted shift from a 'shrinking-to-glory' era (most missing top-line yet most delivering bottom-line) to a 'shrinking-to-misery' era (most missing both top-/ & bottom-line and reducing guidance) is now largely confirmed. In that regard Q2 marks a real shift (58% top-line miss, 70% bottom-line miss). It is the consequence of the end of three super-cycles (end of high pricing, end of China as global tailwind, end of post COVID growth acceleration on few specific categories like VMS, Beauty, Pet, Alcoholic Drinks) along with now a (cyclical) weakness in US/EU consumption 2) As predicted Boards are dismissing CEOs at an unprecedented pace in an attempt to respond to those unprecedented times 3) Volume development stopped to improve in Q2 with 50% of the world largest FMCG companies recording volume decline. The overall suggests (as shared previously) that volume recovery will be everything except linear   4) Gap between winners & losers keep increasing. It is true across all verticals and reflects the gap in cat/geo footprint, brand portfolio & execution. Difference in price elasticity being the ultimate predictor of success 5) Majority of FMCG companies are ill-prepared to manage this situation (68% are yet to recover their pre-covid profitability level, most have been on average steadily losing market share over the last decade). One-off reinvestments into growth are likely to be a negative sum game (most FMCG companies neutralizing each other with increased pace of innovations & increased A&P), the overall translating into profit erosion with little-to-no top-line growth (all confirmed by Q2 results) 6) The delta between the cost of inorganic growth and the cost of organic growth is progressively reversing driving, as expected, an acceleration in M&A. Unsurprisingly mid-size growth-oriented M&A on same categories large developed markets benefiting from GTM synergies are driving this trend (highest ROI deal type over the last two decades in the FMCG industry). We expect now a non-linear acceleration in M&A in the coming quarters 7) Divesture remains the #1 lever to adjust growth/ profitability footprint at pace/ scale & boost EPS growth and unsurprisingly value of divesture has now outpaced M&A value for 3y in a row In that context, our conviction remains: outperforming FMCG companies will be the ones that will be market makers/ drive incremental category growth More on the how in our publication below Enjoy the read. Keen to read all your perspective Exciting times To join the 35k FMCG executives that receive our newsletter, sign up at: https://lnkd.in/ea4gy65y 𝗔𝗯𝗼𝘂𝘁 𝘂𝘀: FF&A solves the most complex strategic & growth problems of the world largest FMCG companies. 14 out of the world 20 largest FMCG companies are repeat Clients #fmcg #cpg

I understand why people don't "get" alt proteins, based on industry developments, but let's use the current egg industry to show where I see value for alternatives to animal products _________________________________ Much of the alt protein space has been focused on consumer-facing products, and while a handful have seen success, the broader landscape has faced hurdles Why? Consumers, simply, don't see a problem with animal products (i.e., if it ain't broke, don't fix it) 👎 Alt protein enthusiasts argue that the need is so great from a sustainability and animal welfare standpoint, but people don't make purchases based on those factors However, this ignores where real pain in the supply chain may be felt as we make food in a changing climate—the invisible inputs portion of the food system No ingredients are truly "invisible," but many are used for functionality and/or taste—AKA consumers aren't thinking about them 🥚 Eggs, for instance, can be found within: - Baked goods (cake, cookies, bread) - Pasta - Mayo and dressings - Confectionaries (custards, ice cream, etc.) - Even some processed meat and dairy products In fact, anywhere between 30-40% of the egg market is used for eggs as ingredients versus whole-egg use cases 💵 In an almost $300B global market, that means $90-120B of eggs are "invisible" to consumers 🛑 But what happens when egg prices soar due to something like the bird flu in the US? 🛑 The USDA is showing wholesale egg prices >$7.30/dozen, up over 45% since early 2024. When 70M chickens are culled, these costs are passed on to consumers 🎢 That's where alt proteins can offer respite from the rollercoaster pricing ride that no large food company wants to be on In a world where price volatility in food is REAL, locking in a stable supply chain for egg ingredients at agreed-upon prices allows the largest buyers (Nestlé, Mondelēz International, Grupo Bimbo, McDonald's, Barilla Group, etc.) to plan ahead The direct approaches are the companies producing identical animal proteins (The EVERY Company, Onego Bio), but others are creating novel ingredients with similar or superior functionality, aiming to undercut egg prices Additionally, where we focus a lot of our time at CCC as it relates to alt proteins, enabling tech companies facilitate the shift to a sustainable bioeconomy for food by addressing major cost drivers in bioprocessing and supply chains (Boston Bioprocess, Sunflower Therapeutics). These companies not only push the industry forward but also generate revenue by supporting pharma, biofuels, etc., making them attractive investments _________________________________ What's happening with eggs is one example across animal ag, and we expect continued food price volatility—a food security issue alt proteins can directly address We can't predict when price shocks will happen, but to be prepared, we must invest in solutions today What do you think?

3 consumer trends I saw this week that show Gen Z and alpha consume very differently from us. I’ve seen four generations of consumers in my own house - My dadi, my parents, Trisha and I, and now my daughter. There were minor evolutions in consumption as we went down the generations. But, now the playbook seems to have shifted completely. Here are 3 examples from founder conversations this week: 1. Dinner sets are dead. It’s about sets of 2/3 My grandfather had a 24-piece porcelain set. White, gold rimmed, never used. Only brought out when “important guests” came over. That was what buying for an occasion looked like. Seeing a young couple spending ₹10,000 on two mugs from Good Earth for their morning coffee ritual isn’t uncommon today. A founder in the dinnerware space told me it’s experiential now. Customers want a different bowl for ramen, a different plate for sushi, a proper thali for Indian food, and an entire shelf just for mugs. Even if it’s just for personal consumption and in sets of 2. India’s homeware market is set to double by 2032. And over 60% of young buyers start their journey on Instagram and Pinterest. So, the playbook has turned. 2. Perfume ≠ One Bottle Anymore In college, I had one perfume that lasted two semesters. A "signature scent" was for my personality. Now? Gen Z rotates 4 to 6 fragrances. One for work. One for the gym. One for date night. One just for the vibe. And, they ‘layer’. Fragrance has gone from utility to emotion. It's your mood. It’s self care. (Yes, I’ve written about this before. Link in comments.) 3. Fitness is the New Friday Night For me as a young adult, weekends meant parties and fancy meals. Now I get texts like: “Bro, paddling tomorrow?” “Saturday run at 7am?” I see more Padel tournaments, 10Ks, and gym stories than party reels. And honestly? I love it. Everyone is talking about their trainer, diet or fitness regime. The new social flex is now your marathon personal best or knowing what ‘Hyrox’ means 🤣 . The new generations aren’t just spending more. They’re spending with emotion, ritual, and aesthetics. And, they’re spending differently. If you're still selling the way you did 5 years ago, you're selling to a past that’s not coming back. Do you agree? Have you seen the same story? #India #consumer #genZ #d2c

#Amazon just killed the old e-commerce algorithm. Rufus now has memory & it changes the game more than Prime ever did. For 20 years, #ecommerce placements ran on two engines: ▪️Product-based logic → “You bought a phone, here’s a case.” ▪️Crowd-based logic → “People who bought X also bought Y.” That era is over. Now, with Rufus AI memory, a third engine arrives: ▪️Contextual logic → “Yesteday you asked for trail shoes. Today you’re back - here’s a water-resistant jacket that completes your kit.” This is bigger than chat. Rufus memory will fuel every surface on Amazon: Sponsored Display, PDP recos, offsite retargeting. One memory, everywhere. A full-funnel intelligence system that learns once and sells everywhere. Why it matters: 1️⃣ Smarter cross-sell → Rufus won’t waste placements on what was just bought. It will anticipate the next logical purchase 2️⃣ Full-funnel impact → Memory won’t stay in chat. Expect it to power every algorithmic slot across Amazon. 3️⃣ Journey > click → Performance is no longer about CTR. The real metric: How often does Rufus recall and re-recommend your brand across the funnel? 4️⃣ Content = algorithm fuel → If your PDP doesn’t spell out connections (pairs with, next in routine, complementary use cases), Rufus won’t link you into the journey. What brands must do now: ▪️Design ecosystems, not SKUs → Build routines, bundles, and adjacencies. Memory rewards portfolios that tell a story. ▪️Engineer cross-sell signals → Use content to “teach” Rufus where your product fits in the customer journey. ▪️Hit hygiene benchmarks → Near-200 character titles, 7+ visuals, A+ content, 4.3★+, Prime/FBA - still a non-negotiable fundamental priority ▪️Adopt new KPIs → Share of voice in Rufus answers, attach rate, and repeat recommendation frequency. Business impact This is the algorithmic pivot of the decade. Contextual AI shifts Amazon from a #marketplace with recommendations into a shopping brain that curates, recalls, and predicts. Every surface, every placement, every touchpoint is now personalized by a history of interactions. Day 1 for the industry - we will see other #online #OMNIchannel giants follow. Retailers with strong loyalty programs are sitting on a goldmine once they connect life context with shopping intent. If you’re not training contextual algorithms to remember your brand, you’re training them to forget you.

Hotels are betting on longevity. Let’s break it down: High-end hospitality is evolving. Guests aren’t just coming for rest, they’re also coming for optimization. The rise of "wellness tourism" means the top hotel brands are becoming centers for diagnostics, recovery, and peak performance. But creating a true health destination takes more than just a "sauna" or "juice bar". Here’s the real model: ✅ 𝗦𝘁𝗮𝗿𝘁 𝘄𝗶𝘁𝗵 𝗱𝗶𝗮𝗴𝗻𝗼𝘀𝘁𝗶𝗰𝘀, 𝗻𝗼𝘁 𝗱𝗲𝗰𝗼𝗿 Bloodwork, biological age testing, VO2 max, microbiome kits. Low infrastructure, high insight. It’s the unlock for personalization, and loyalty. ✅ 𝗕𝗿𝗶𝗻𝗴 𝗰𝗹𝗶𝗻𝗶𝗰𝗮𝗹 𝗲𝘅𝗽𝗲𝗿𝘁𝗶𝘀𝗲 𝗶𝗻-𝗵𝗼𝘂𝘀𝗲 MDs, NPs, and functional health pros alongside movement and nutrition experts. Guests don’t want a list of services, they want a plan that makes sense. ✅ 𝗟𝗮𝘆𝗲𝗿 𝗶𝗻 𝗼𝗽𝘁𝗶𝗺𝗶𝘇𝗮𝘁𝗶𝗼𝗻 𝘁𝗼𝗼𝗹𝘀 Hormone therapy, hyperbaric, NAD+ IVs, red light, breathwork. From luxury to longevity, this is what turns guests into long-term clients. ✅ 𝗣𝗲𝗿𝘀𝗼𝗻𝗮𝗹𝗶𝘇𝗲𝗱 𝗼𝘃𝗲𝗿 𝗽𝗿𝗲-𝗽𝗮𝗰𝗸𝗮𝗴𝗲𝗱 Generic retreats are out. Tailored protocols based on biomarkers and goals? That’s what brings them back. ✅ 𝗠𝗮𝗸𝗲 𝗵𝗲𝗮𝗹𝘁𝗵𝗰𝗮𝗿𝗲 𝗰𝗼𝗻𝘁𝗶𝗻𝘂𝗼𝘂𝘀, 𝗻𝗼𝘁 𝗲𝗽𝗶𝘀𝗼𝗱𝗶𝗰 Offer re-testing, app-based progress, supplement delivery, remote consults. Guests leave with a roadmap, not just a short-term experience. 🏨 Early movers: → SHA → Six Senses Hotels Resorts Spas → Lanserhof Group → Aman → Equinox Hotels The future of hospitality isn no longer just about five-star service. These are places to recharge. Longevity isn’t a trend. It’s becoming the new standard for wellness travel. And the best hotels are getting ahead of it. 👉 Which brand do you think will get there first? ♻️ Repost if you see this shift coming, and follow Delphine Le Grand for more on where hospitality meets healthspan.

Wellness brands are reshaping CPG. Straining households, food prices have spiked ~31% since 2019. In the K-shaped economy, the wealthiest consumers are buying trendy brands at luxe specialty grocers, as everyone else seeks the cheapest option that meets their needs. Yet, even among six-figure earners, 70% say they now shop at discount grocers for essentials, reserving splurges for special “little treat” products. Unexpectedly, lower-income consumers are driving the fastest growth in natural product spend as private label unlocks access. Store brand sales have jumped 23% in four years, rising to >20% market share, and 80% of consumers say the quality now matches national brands. The new product pipeline, when Once Upon A Farm debuts $3 organic baby food pouches, Nestlé is pressured to answer with a $2 Gerber version, then Target launches a $1 Good & Gather dupe. The trendy brand never trickles down, but copycats do. Notably, high- and low-income shoppers are feeding different wellness motivations. The former pays a premium for identity x belonging. The latter is cleaning up toxic exposures on the cheap. Stuck in the middle, legacy brands increasingly satisfy neither, relying on M&A to stay relevant. Broadly speaking, F&B CPG is underperforming, but premium/functional/healthy options are growing twice as fast as the overall category. Outliers, better-for-you insurgents gained ~55% YoY on volume. Predicting a permanent shift in consumer values, nearly half of CPG execs say their current business model won’t survive the decade. 🔗 Read the full breakdown on Fitt Insider → https://lnkd.in/g4zz27XQ

Gen Z is eating out 5+ times a week. So why are we still designing restaurants for their parents? Here’s the data that should terrify casual dining and wake up QSR leadership: 56% of Gen Z qualifies as “frequent users”, dining out 5 or more times per week. Nearly half are spending MORE of their disposable income on restaurants compared to last year. Meanwhile, Gen X and Boomers? They’re pulling back. But here’s where it gets interesting: Gen Z isn’t just ordering more often. They’re ordering differently. They prefer DINNER over lunch. They want experiences, not just speed. And they’re gravitating toward fast-casual and full-service concepts that offer quality, transparency, and ambiance, not just a bag through a window. The kicker? Three out of four Gen Z diners say they’re “price-aware,” but only 63% say prices feel high, compared to the industry average where nearly everyone agrees prices have jumped. Translation: Gen Z isn’t as price-sensitive as we assume. They’re VALUE-sensitive. They’ll pay more if the experience justifies it. This is a generational shift in consumer behavior that most legacy QSR brands are completely missing. We’re designing value menus for customers who are aging out of the category, while the highest-frequency diners in America are telling us they want something else entirely. If your 2026 growth strategy is “cheaper combo meals,” you’re solving yesterday’s problem. The question isn’t “How do we get Gen Z to visit more?” They’re already visiting 5+ times a week. The question is: “Are we building the restaurants they actually want to spend their money in?” What are you changing in your locations to meet Gen Z where they are, not where we think they should be? #QSR #GenZ #RestaurantTrends #ConsumerInsights #ValueVsPrice #FastCasual #Leadership