Sensory and Consumer Science at Symrise, on future trends on the beverage market.
Where do ideas actually come from on the beverage market?
Beverages constitute one of the most dynamic, innovative markets on earth. They’re the playground of the food industry. They very clearly reflect the effects of globalization and show how inspiration can come by looking beyond our borders. That doesn’t mean that we copy whatever works well somewhere else. This isn’t about mass marketing. Quite the contrary: we have to look at niches in every market. Our job is to take a close look at the new, unusual things going on beyond the mainstream – in tiny market segments. Green tea is a good example of this kind of lucrative niche and how it develops. It used to be that it left – figuratively speaking – a crunchy-granola aftertaste. Today, green tea extract is an inescapable component of practically every so-called wellness drink. These new, profitable niches are interesting for another reason, too: target groups are breaking down into smaller and smaller market segments. The tendency is a very clear departure from socioeconomic factors such as income or age and has more to do with situational life issues: what am I doing right now with my life and what drink works with that? Common interests play an increasingly large role. That’s why Prince Charles and Ozzy Osbourne might reach for the same drink if they’re doing similar things, like traveling, sports, BBQing, etc. When a beverage manages to fill a situative gap well, then it has a real chance.
How do companies and/or industry manage to keep up with the zeitgeist?
You keep your eyes open, do your own research and commission other research. Researching consumer habits, trends and outlooks is one of our strengths at Symrise. The first area of research tells us what’s happening today, the second tries to determine what will happen tomorrow, and the third looks at the day after tomorrow, i.e., through a window of five, ten or more years. We also take advantage of consulting services provided by select institutes and we commission studies. You don’t become a true trendsetter until you consistently focus on what are known as “weak signals,” i.e., the local or regional signals that might be observed today somewhere in the world, such as the new niches I just described. Another extremely exciting approach is to observe trends in completely disparate industries. The media and automotive industries are always way ahead, and we can make use of their insights. That requires a lot of information transfer, but it pays off. And finally, we’re not just looking at countries or industries – we’re also thinking outside the box. Non-verbal consumer research, such as investigating facial expressions, would be one area to watch here. Blog searches represent another important tool for us – they allow us to assess demand from the opinions that people express voluntarily, rather than waiting to ask for them, as is done in classic market research. Personally, I categorize trends according to my “SQE” principle: S is for signals, i.e., the weak signals I just described; Q is for quickies, i.e., short-lived trends that you can get behind and then bail out of quickly; and, finally, E is for evergreens, i.e., products with staying power.
What are the next big trends that you can already see coming?
An hour-glass effect is developing on the markets in general: the bottom half of the hour glass is full of mass-marketed products, the selection of products narrows in the middle, and the premium market widens up again at the top. The uniqueness of a brand and/or product opens up important opportunities in every segment of the hour glass. The boundary criteria become clearer. In the upper part of the hour glass it is obvious that the “artificial” attribute will vanish. Under no circumstances, however, do we want to stigmatize the lower value segment in the process – we have to offer good products here, too. Creativity and expertise in flavorings provide a lot of solutions in this regard. And there will most certainly be completely new active ingredients that will expand the functionality of current beverages. Other major topics include multisense issues, i.e., the perceptions of all of our senses: our tactile impression of the beverage bottle, the prickling sensation of the carbonation, the creaminess of the frothed milk of a cappuccino... Product development, communication and marketing will have to work with all five senses if products are to be unique. That can become part of the emotional component of brands and products: it’s a big job for marketing – assuming the quality of the product is right. People have to be excited about their drinks; consumers have to become fans of a brand. And that may to happen outside of the realm of trends – possibly even on a global scale. But let’s be honest: you can be hugely successful with a drink even on a regional level.
