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NORTH AMERICA

C O N S U M E R

T R E N D S 2 0 1 8

Welcome to Mintel’s North America Consumer Trends for 2018, where we aim to put you and your business at the vanguard of the next year and the years beyond.

Our trend predictions are the product of a methodology based on four components: pending political and legislative events due in 2018; the momentum in product and campaign launches as observed by our team of global trend spotters; the appetite among consumers for these issues and innovations as evidenced by Mintel consumer research; and the opinions of Mintel’s expert industry analysts.

Much of what we’ll explore here is, in some way, the continued

evolution of the trends we accurately predicted to play out in 2017. However, with surprises at every turn and vague uncertainty gripping Americans and Canadians daily, being attuned to consumer trends is perhaps more crucial in 2018 than ever before. These predictions will allow us to explore together what it all means for brands.

Best wishes for the year ahead.

E D I T O R ’ S

N O T E PAGE 5

Trust Funding

In a post-truth world, consumers are putting their dollars where their trust remains intact.

PAGE 23

Health Yourself

In an uncertain and seemingly unstable world, self-care and preventative health are becoming essential for consumers across demographics.

PAGE 33

Life In Sync: Voices & Visuals

As the line between online and offline blurs, smart systems are delivering seamless convenience—with voice control and image recognition at the helm.

PAGE 13

The Value Equation

Budget-minded consumers are weighing a variety of value factors for each purchase decision, and brands are making these individuals a priority.

Stacy Bingle Consumer Trends Consultant

Carli Gernot Manager of Trends, North America

4 5 TRUST FUNDING

TRUST FUNDING

In a post-truth world, consumers are putting

their dollars where their trust remains intact.

TRUST FUNDING

6 7 TRUST FUNDING

What’s Happening In 2018? We’re living in a post-truth and post-trust world. As consumers grapple with news that may or may not be “fake,” with corporations acting in ways that foster mistrust, and with organizations voicing beliefs and philosophies, more people are reprioritizing who and what they trust.

Chasms in society are growing larger, and this divergence in perspective is fueling distrust and making it difficult for brands to appeal to those consumers who might see the world differently from their traditional consumer base. Consumers align their patronage and trust with companies whose actions, beliefs, and morals match up with their own.

Given the proliferation of instantaneous reporting via social media and the relentless 24- hour news cycle, individual, and corporate positions are on display at every turn. The president of the United States, corporations, and individual consumer influencers alike use social media to communicate their thoughts, positions, and reactions to the public. The potential for rapid- fire exposure has contributed to consumer skepticism and provides platforms for companies and leaders to be called out by

Consumers align their patronage and trust with companies whose actions, beliefs, and morals match up with their own.

everyday citizens. In turn, consumers use social media channels to communicate their trust (or lack thereof) in the brands they choose to support or decide to avoid, contributing to echo chambers and an “us versus them” division that only further feeds distrust.

While it has been true thus far that many consumers tend to align their support with companies that share their morals, values, and ideological positions, today, trust has become one of the strongest drivers in how consumers choose products, services, and which organizations and politicians to support.

Trust has become one of the strongest drivers in how consumers choose products, services, and which organizations and politicians to support.

8 9 TRUST FUNDING

Trust is key when it comes to spending on and believing in products and brands, but it is also a critical part of community cooperation and social harmony. Both of these areas are seeing the impact of waning levels of trust—consumers lose trust in a brand after a scandal or controversy, and, more often, when a marketing message doesn’t ring true with their perspective of how the world should work.

According to Mintel research, only 18% of American consumers agree that “most Americans share my values,” and just 5% of Canadians say they trust the news stories they read on social media sites, indicating a level of discomfort and skepticism. A March 2017 study by Pew Research reveals that two in five Americans say they expect “no major change” in the online social climate in the coming decade, while near the same number say they expect the online future will be “more shaped by negative activities.”

Consumers expect companies to take a stand, speak out, and prove that they’re trustworthy.

Why Consumers Will Buy Into This

As individuals lose trust in a company and find themselves disillusioned, they seek out a more trustworthy alternative that more closely aligns with their world view, thereby opening up opportunity for competitors. Nearly two in five Americans say that bad publicity like recalls or scandals would make them consider another car brand.

Similarly, consumers expect companies to take a stand, speak out, and prove that they’re trustworthy, in whatever way that trustworthiness is communicated. Mintel research highlights that four out of five US consumers feel as though professional sports teams should take a stronger stand on controversial issues. In an effort to increase transparency and build trustworthiness, Google has rolled out globally a new fact-checking feature to help users find credible news stories, and SC Johnson has announced that it will list the presence of 368 potential skin allergens that may occur in its products.

5% of Canadians say they trust the news stories they

read on social media sites

Waning levels of consumer trust

Base: 2,000 internet users in the US aged 18+; 2,000 internet users in Canada aged 18+

Source: American Lifestyles: Finding Common Ground 2017; Canadian Lifestyles: Pride and Purse Strings 2017

18% of Americans agree that “most Americans share my values”

5%

18%

10 11 TRUST FUNDING

In February 2017, American chef and

restaurateur Rick Bayless closed four of

his Chicago restaurants for one day to show

support for immigration.

Evaporating trust means that companies sometimes have little choice but to communicate where they sit on various issues, make bold moral actions, and take clear political stances when necessary. Avoiding a display of corporate values may lead to consumer distrust. One way to retain trust is to operate with empathy; confessing mistakes and acknowledging flaws and shortcomings is crucial, especially since companies are vulnerable to instantaneous exposure and judgment at the hands of social media-focused consumers. Staying current with the concerns of individuals is important—commenting on controversy or current events can go a long way to build up trust with customers who want to hear from the brands they choose to support.

Product innovation that meets the changing needs of apprehensive consumers can build or redeem trust, including adding more information to packaging or incorporating livestreams of production methods. But taking broader action as a company might be effective as well. In February 2017, American chef and restaurateur Rick Bayless closed four of his Chicago restaurants for one day to show support for immigrants amid controversial immigration reform coming from the Trump administration.

One way to retain trust is to operate with empathy.

Brands will need to court consumers with transparency, honesty, and facts; at the same time, they will need to find new ways to prove their positions.

Where Next?

Brands will need to court consumers with transparency, honesty, and facts; at the same time, they will need to find new ways to prove their positions. Asserting efficacy, transparency, and trust will be a top priority for brands across categories as long as skepticism drives purchasing behavior and consumer attitudes.

12 13 THE VALUE EQUATION

Budget-minded consumers are weighing a variety of

value factors for each purchase decision, and

brands are making these individuals a priority.

EQUATIONEQUATION THE VALUETHE VALUE

14 15 THE VALUE EQUATION

While it’s true that values matter, brands are similarly clear about the importance of value when appealing to lower-income or merely budget-focused consumers. We’ve seen more retailers and companies roll out products and services that are geared toward capturing the low spender’s attention: Amazon added a $5.99/ month Prime membership for those on government assistance; online dollar stores like Hollar and

Brandless are becoming more popular. Consumers, on the whole, are feeling a bit more positive about their money—43% of Americans describe their economic situation as “healthy” in 2017, according to Mintel research— although they are still cautious with spending. However, the stigma of shopping on sale or with a coupon is long gone. Consumers have more options than ever thanks to brands’ renewed focus on these

low spenders, with some affluent consumers just as likely to seek out deals in certain categories as low-income consumers, albeit with different motivations.

With retail jobs disappearing and automation displacing factory jobs, middle America is feeling the pinch and the wage gap is widening, leaving many consumers unable to spend as they were once accustomed to. More brands are

focusing efforts to align with values, but value matters just as much to many consumers, and for a significant portion, it’s the most important factor in their shopping decision.

Brands are focusing efforts to align with values, but value matters just as much to many consumers, and for a significant portion, it’s the most important factor in their shopping decision.

What’s Happening In 2018?

The stigma of shopping on sale or with a

coupon is long gone.

16 17 THE VALUE EQUATION

It’s not news that consumers look for discounts and deals; but what we’re seeing is that brands across industries are prioritizing those consumers hunting for bargains in new ways.

Because cash-strapped and budget-savvy shoppers abound—often regardless of income level—savings and low prices are enjoying elevated status and renewed attention.

Even brands that have been regarded as high-end are developing more affordable products and services and some low-end brands are moving in on higher-tier territory with budget lines.

Why Consumers Will Buy Into This

Consumers focused on value above all else will go to great lengths to save and avoid paying more than they have to. Discount grocery retailer Aldi began selling organic produce, entering into direct competition with outlets on the higher end of the spectrum like Whole Foods. With the opening of their new stadium in August 2017, the Atlanta Falcons rolled out a new fan-friendly, lower-priced concessions menu and Tesla has introduced the Model 3, which will start at only $35,000.

The hotly anticipated

Model 3 is Tesla’s attempt to bring an electric car to

the masses.

Cash-strapped and budget-savvy shoppers abound

Base: 1,238 internet users in the US aged 18+ who

have flown in the past year; 2,000 internet users in the

US aged 18+; 2,000 internet users in Canada aged 18+

Source: Airlines US 2016; Consumers and the Economic Outlook:

Quarterly Update US July 2017; Consumer Finances

and Priorities Canada 2016

65% of US consumers say

lower prices would influence them to choose one airline over

another

70% of US consumers say that “saving money” is most important when it comes to improving their current economic situation

36% of Canadian consumers say they worry about money a lot of the time

52% of Canadian consumers agree

that they are more cautious with their

money now

Consumers focused on value above all else will go to great lengths to save and avoid paying more than they have to.

Aldi’s foray into organic and

gluten-free foods signaled a new

direction for the company.

The Atlanta Falcons’ new stadium sells food and drink at unbelievably low prices, including

$2 for a hotdog and $5 for beer.

Brandless is a direct-to- consumer, ecommerce business that sells everyday essentials for $3 each.

Launched in November

2016, Hollar is the

first online dollar store.

Trends in Action THE VALUE EQUATION

18 19

20 20

Consumers consider many aspects of a product or service when making a purchase decision and price is often the most influential, even while ideological concerns remain powerful. Tighter budgets may cause consumers to re-evaluate whether their go-to choices are worth the cost and brands need to be able to respond accordingly via tiered pricing structures or different sales channels for different consumer segments. Because a large proportion of rural and low-income consumers don’t have

home broadband, finding value online isn’t necessarily their solution for saving. The physical still matters for many consumers, whether it’s in-store experiences, pop-up commerce, or intriguing and informative packaging.

As economic uncertainty continues its hold on the North American consumer base, brands that engage with low spenders and develop low-cost alternatives are set to enjoy increased attention from those looking to save.

Where Next?

The physical still matters for many consumers, whether it’s in-store experiences, pop-up commerce, or intriguing and informative packaging.

The world’s leading market intelligence agency What you need to know about consumers, markets and innovation, now and in the future.

Expert Team

50+ years of industry experience

Leading Industry Forecasting

What’s next?

Credible Data

Innovation

Consumers Markets

Trends

How do we do it? Mintel’s global, specialist team of world-class analysts use the most credible source of data, news and opinion. They mine that data for innovation, trends and inspiration, so they can give you a clear insight into what’s next.

22 23 HEALTH YOURSELF

HEALTH YOURSELF

In an uncertain and seemingly unstable world,

self-care and preventative health are becoming

essential for consumers across demographics.

HEALTH YOURSELF

Interest in self-care and preventative health has been building for decades, but a combination of strong forces is bringing these topics into the spotlight in 2018.

Across North America, fake news, global terror threats, and sociopolitical unease are impacting people’s well-being now more than ever. Regardless of

an individual’s political affiliation, widespread turmoil elicits feelings of unease and the growing lack of trust, melancholic atmosphere, and profound worry can take a toll on society. As a result, people are looking for ways to boost their moods. It’s telling that Google searches for the term “self-care” reached a five-year high after the US election.

Adding to these concerns, as the US healthcare debate rages on—and as a physician shortage looms in both the US and Canada—the uncertainty of the situation is causing an anxious populace to focus on holistic views of health to stay well, maintain a sense of balance, and ultimately avoid the unknown risk associated with healthcare costs.

What’s Happening In 2018? Google searches for the term

“self-care” reached a five-year high after the US election,

according to Google Trends.

Interest in self-care and preventative

health has been building for

decades, but a combination of

strong forces is bringing these

topics into the spotlight in 2018.

HEALTH YOURSELF

24 25

26 27 HEALTH YOURSELF

The Adidas All Day app empowers users to live

their best life by inspiring balance amongst what

fitness experts call the four key drivers of athletic performance: movement, nutrition,

mindset, and rest.

With Hilton’s Five Feet to Fitness™, you can work out in the privacy of your hotel room with over 11 different fitness equipment and accessory options.

This “perfect storm” is motivating many consumers to incorporate proactive wellness methods into their daily routines. And just as unfavorable news is widespread and at our fingertips, so too are its antidotes: tips, tools, and motivations for self-care. Brands are facilitating this movement with above-and-beyond initiatives, such

as Hilton’s Five Feet to Fitness™ program, Bell Canada’s Let’s Talk Day, and Adidas’ holistic All Day app. Other apps, videos, social media posts, fitness trackers, and smart devices are guiding consumers as they seek not just physical wellness, but also mental, emotional, and spiritual wellness.

Apps, videos, social media posts, fitness trackers, and smart devices are guiding consumers as they seek not just physical wellness, but also mental, emotional, and spiritual wellness.

28 29 HEALTH YOURSELF

New consumer concerns emerge every year, but those in 2018 will be both unique and trying. As it relates to unease stemming from the US presidential election, Mintel research shows that most Americans initially took

a “wait-and-see” approach, but sentiments have shifted as consumers have found more reasons to be concerned. In November 2016, 61% of US consumers agreed with the statement: “There’s no point in worrying about

Why Consumers Will Buy Into This

things until we’ve got a better idea of what might happen.” By July 2017, that proportion had fallen to 46%. In the same time frame, the proportion of Americans who agreed that the election had a positive impact on the cost of health insurance dropped from four in 10 to three in 10.

Canadians, meanwhile, are not unaffected by their neighbors’ fears, and carry their own set of worries as well.

Nearly one quarter of Canadians are concerned about the value of their savings and investments in light of the results of the 2016 US presidential election. Meanwhile, 84% of Canadian adults are concerned with the future of the economy and just two in five have a positive outlook on the future of the country.

As a result, consumers are taking charge with proactive approaches to both maintain a sense

of stability and avoid unnecessary health- related costs. According to Mintel research, around seven in 10 American and Canadian consumers say that feeling better is a reason for better managing their health.

84% of Canadian adults are concerned

with the future of the economy.

24% of Americans and 21% of Canadians cite saving money as a reason they manage their health

Consumers take a proactive approach to health

Source: Managing Your Health US 2017; Healthy Lifestyles Canada 2016 Base: 2,000 internet users in the US aged 18+; 1,732 internet users in Canada aged 18+ who see themselves as healthy

0%

0%

100%

100%

America

Canada

69% of Americans and 75% of Canadians cite feeling better as a reason they manage their health

41% of Americans and 39% of Canadians cite feeling less stressed out as a reason they manage their health

21% 39% 75%

69%24% 41%

21% 39% 75%

30 30

Where Next? As the focus on self-care continues to grow as a reflection of the current climate, emerging concerns that affect various groups will require more personalized pathways to health. A shrinking middle class will necessitate approaches for low-income consumers; an aging population will call for innovative care that facilitates extended independence; the iGeneration (ranging from ages 11-23 in 2018) will face new

issues resulting from a lifetime in front of screens; and the world’s opioid crisis will demand even more holistic pathways to wellness that eschew certain drugs.

The opportunity is ripe for brands in any sector to develop their support roles for the growing number of consumers seeking to better themselves and get ahead of health concerns.

An aging population will call for innovative care that facilitates extended independence, while the iGeneration will face new issues resulting from a lifetime in front of screens.

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32 33 LIFE IN SYNC: VOICES & VISUALS

VOICES &

As the line between online and offline blurs, smart systems are

delivering seamless convenience— with voice control and image

recognition at the helm.

LIFE IN SYNC: LIFE IN SYNC:

VISUALSVISUALS VOICES &

34 35 LIFE IN SYNC: VOICES & VISUALS

Alexa is an intelligent personal assistant developed by Amazon.

Humans have been using speech and images to communicate for thousands of years, and technology is finally catching up.

The first iteration of the trend ‘Life in Sync’—one of Mintel’s North America Consumer Trends for 2017—correctly predicted that life would become “seamless and smarter thanks to major advancements in artificial intelligence (AI).” That trajectory continues, and computer systems are now adept at understanding the words we vocalize and the images we present to them. In 2018, speak (or show) and you shall receive.

Because of the intuitive nature of voice control, consumers are quickly becoming comfortable with using smart assistants to complete tasks. Already, Amazon’s Alexa can perform more than 15,000 “skills,” Google says that 20% of its smartphone searches are done by voice, and some smart assistants (Microsoft’s Cortana among them) claim near-human recognition error rates of close to 5%. The time has come for the quickness and intuitiveness of chatbots to migrate from type to talk.

AI can recognize visuals just as capably as it can understand

What’s Happening In 2018?

voices. It not only identifies faces as a security biometric—as seen in Apple’s Face ID feature—but it is enhancing the real world with a digital overlay that’s now advanced enough to be truly helpful. Apple is also making augmented reality (AR) for the masses by building it into iOS11 and opening it up to developers, allowing brands to tap into the endless possibilities of AR.

All of this is inextricably blurring the line between the online and offline worlds, leading consumers to see not “digital” or “physical” in the various tools that make life more convenient, but to

instead see one clear, streamlined benefit. We will continue to see rapid improvements in this realm— and rapid consumer adoption— as machine learning amasses more data every single day.

The time has come for the quickness and intuitiveness of chatbots to migrate from

type to talk.

The Concept-i vehicle is

Toyota’s vision for how

cars might look in 2030.

Cortana is an intelligent

personal assistant created

by Microsoft. (Used with

permission from

Microsoft.)

Face ID from Apple includes an encrypted facial map to check that a user’s identity is authentic and allows the user to unlock the iPhone and authorize payments.

AR apps deliver high- quality experiences using the built-in camera, powerful processors and motion sensors in iOS (pictured here) and other devices.

Facebook’s AR glasses are said to use a waveguide system that projects images and light into the

user’s eyes, superimposing photos and videos on top of a live image of the real world.

Trends in Action LIFE IN SYNC: VOICES & VISUALS

36 37

38 39 LIFE IN SYNC: VOICES & VISUALS

In an increasingly hectic world, consumers are looking for technology that can help make life more manageable. According to Mintel research, one third of US consumers see the role of their smartphone or tablet as a tool to make life more convenient, while the same proportion

already own, or would like to own, a digital assistant.

When it comes to streamlining in the home, three quarters of Canadian consumers who are interested in making their home better connected agree that using smart devices saves time when

performing day-to-day tasks. Over two in five US consumers are interested in WiFi- and/ or Bluetooth-enabled refrigerators/freezers (eg to monitor food inventory, control via mobile device), with one in five saying they would pay more for these features.

One third of US consumers see the role of their smartphone or tablet as a tool to make life more convenient.

Why Consumers Will Buy Into This

As tech advancements make voice control and image recognition more prevalent, consumers seem to anticipate the benefits they could reap. Mintel research reveals that there is already substantial interest given that three in five Canadians are interested in Bluetooth technology for their next vehicle; meanwhile, half of Americans have used or are interested in using AR or VR to virtually experience a location.

Consumers see the benefits of voice control and image recognition

Source: Managing Your Health US 2017; Healthy Lifestyles Canada 2016 Base: 2,000 internet users in the US aged 18+; 1,732 internet users in

Canada aged 18+ who see themselves as healthy

50% of US travelers have used or are interested in using AR or VR to

virtually experience a location

60% of Canadians say they would be interested in Bluetooth technology (eg hands-free calling, voice control) for their next vehicle

60%

50%

40 40

The future of AI is fraught with concerns, but it will also bring unimagined benefits to the world.

Improvements in voice control could help users avoid looking down at screens. They could also help improve the lives of humans by adding a layer of emotional understanding: Toyota’s Concept-i car sees the vehicle’s AI building a “relationship” with its driver and performing caring actions. Voice- control improvements will vastly transform the shopping process; orders will go from idea to doorstep with just a few spoken words. This presents new opportunities, and new challenges, for brands.

Eventually, AR will move from our phones to our field of vision, syncing our worlds even more effortlessly. Facebook is working on AR glasses that could easily integrate visual information into our normal field of vision. Further out, AR contacts could be on the horizon, making visual guidance on a dinner recipe as accessible as the blink of an eye.

It’s possible to imagine a future where we can voice a query for directions and then see navigation instructions immediately within our field of vision. Brands can work toward a seamless and synced future today by using voice- and visual-based technology to truly take the “think” out of consumer interactions.

Where Next?

The future of AI is fraught with concerns, but it will also bring

unimagined benefits to the world. Find out more: mintel.com

Mintel Trends. For those who create, innovate, or communicate.

mintel.com

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