Evolving Consumer Landscape: Diageo's Projection of Key Trends for 2024

Article Brief:

Consumers are increasingly looking to find meaning in everyday life, often swapping things for experiences, according to a new report from spirits marketer Diageo.

According to the Distilled: A Diageo Foresight Report, 60% of Millennial and Gen Z consumers prioritize spending on life experiences over saving for retirement, a trend referred to as neo-hedonism. The report identifies five consumer trends affecting brands in the near future: neo-hedonism, betterment brands, conscious well-being, expanding reality, and collective belonging. The information is based on data collected by the Diageo Foresight System, which monitors global online conversations.

Article Insight:

According to Diageo’s research, it is crucial for brands to embrace change rather than avoid it. Mark Sandys, the chief innovation officer, emphasized the importance of rethinking strategies and staying agile, as consumer needs continue to evolve, as stated in the report. The data for the report was compiled from July 2021 to June 2023.

Diageo defines the trend as neo-hedonism, where consumers seek everyday moments of indulgence through unique products, enriching social spaces, and a more inclusive vision of indulgence. The trend generated 1.4 million conversations, representing a 39% increase year-over-year.

In addition, Diageo uses the term "brand betterment" to describe the public's desire for brands to make a positive impact on the world. The report revealed that 81% of people feel that social media has increased pressure on businesses to be environmentally, socially, and ethically accountable. Furthermore, 63% of consumers believe that high prices are the main barrier to adopting sustainable practices. This trend sparked 5.6 million conversations, marking a 44% increase from the previous year.

Diageo is advising brands to find ways to help consumers bridge the gap between their desire for sustainable and responsible brands and the obstacles that prevent them from making sustainable purchasing choices, such as price, availability, and overall experience.

An intentional approach to well-being, referred to as conscious well-being by Diageo, has become a top priority spurred by the COVID pandemic. The report tracks 4.3 million related conversations on social media, showing a 30% increase year over year. Subtrends in this category include at-home and near-home sanctuaries, self-love, social occasions enriched by a slower pace, and an interest in multi-functional products that offer well-being-related benefits. North America saw an 18% growth rate in related conversations on social media, while Asia Pacific saw a 65% uptick.

The report also highlights the increasing interest in the metaverse and augmented reality, with a 94% year-over-year rise in social media discussions related to this trend identified by Diageo as expanding reality, totaling 4.6 million. Prominent subtopics include digital marketplaces, AI usage, digital art, and entirely virtual reality events.

Additionally, the research identifies another trend of collective belonging, where consumers seek real-world virtual spaces that promote unity and acceptance. Key findings related to this trend reveal that 48% of 18-to-44-year-olds engage more digitally than in real life. The concept of collective belonging generated 28.7 million related conversations on social media, a 41% year-over-year increase. Consumers explored this trend through diversity initiatives, online communities, and influencer sponsorships.