For instance, in 2012, the company met its goal to improve operational water use efficiency by more than 20 percent per unit of production over 2006 levels. Through our research and analysis of the current and anticipated future landscape, informed by case studies, executive interviews, prior research, and research conducted specifically for this report (see sidebar, “About this study”) we have identified five “undercurrents”—uncertainties which could move in directions contrary to the normal course of action—that may have the potential to capsize unprepared companies. International Monetary Fund (IMF) food and beverage commodity indices. Additionally, 35 percent of consumers described themselves as “ingredient sensitive” in 2015, up from 29 percent in 2010. Trend 3: Seize opportunity amid uncertainty. The COVID-19 pandemic has disrupted mining by pushing the industry further in the path of digital and cultural development. Rather, companies should consider being prepared to steer a winning course even if two or more of these concurrently occur. Slantshackjerky.com, “Jerky of the Month Club,” http://www.slantshackjerky.com/about, accessed January 15, 2014. The consumer segments that were more likely to associate natural and organic with food safety include individuals or households with allergies, families with children, and 21–29-year-olds. We surveyed 205 executives and senior managers in consumer-facing industries to ask: “What are the five most important areas where you would like to know more about US consumer behaviors and attitudes?” Across all surveyed industries, brand loyalty (47 percent) topped the list, followed by consumer willingness to pay higher prices (41 percent). While some differences in perspective are to be expected among these groups of executives, these differences reveal potential blind spots. Moreover, in our analysis of sample brands across industries on positive versus neutral versus negative sentiments for brands, the general discussions about brands across industries was 90 percent positive or neutral and only 10 percent negative. Barb Renner, “The 2021 Deloitte Global Human Capital Trends survey showed that the proportion of HR executives who were very confident in HR’s ability to navigate future changes doubled, from one in eight in 2019 to nearly one in four in 2020. . Deloitte’s 12th edition of the Tracking the Trends report explores trends for mining companies in their ongoing pursuit of productivity, financial discipline, operational excellence and sustainable growth. Since 1980, there have been 178 weather and climate disasters in the United States. 5 Introduction. Looking ahead to 2021, we developed seven marketing trends that can help marketers to build connection and drive engagement with their customers. ... Rio Tinto breaks records at 2020 Argyle diamonds tender - Australian Mining. Pat Conroy, Rich Nanda, and Anupam Narula. The economy will likely continue to stagnate, and may give rise to increased income bifurcation, middling level of consumer confidence, and a struggling middle class. Tech Trends 2020 identifies the trends Deloitte believes will disrupt businesses in the next 18 to 24 months. Under this uncertainty, national brands that do not reinvent themselves and reformulate their products along these attributes risk losing brand loyalty. As a result, the latter could be overlooking the potential of technology. ... An acceleration of intelligent mining - Australian Mining, Share on FacebookShare on TwitterShare on Linked InShare by Email. There are many drivers fueling this volatility, including rising food demand, constrained food supply, volatile energy costs, and global economic uncertainty. Additionally, recent social media listening research indicated that when consumers talk about food safety in the United States, only 14 percent of the discussion is about basic food safety, while the rest is about a broader set of topics, such as health and wellness.43 Within the health and wellness and food safety discussions, a significant number of posts were about transparency (8 million posts) and sustainability (2 million posts). Emily Bryson York, “Economy may benefit Kraft CEO: Brand offers value to consumers,”. Viewed through the lens of people and business, the past decade has been one of tremendous change – with more to come. Copy a customized link that shows your highlighted text. Of course, not every consumer will necessarily embrace personal health, environmental sustainability, and social impact, but a growing portion of consumers is likely to increasingly consider these attributes when making buying decisions. Nestlé Purina observed the intense emotional bond that exists between pets and their owners, with pets often treated as members of the family. Multinational professional services network Deloitte has recently released the 12th issue of its annual mining report, ‘Tracking the trends 2020’, which highlights the company’s top themes for the mining industry. Ltd), Michael Jeschke (Deloitte Consulting LLP), Shweta Joshi (Deloitte Support Services India Pvt. Our hope is to not only provide you with a guidebook to help you set your course, but also to bring about action on these challenges. Kim Porter, Savvy companies are already increasingly tapping into consumers for ideas on new products and product variants. A decade or more after online shopping became mainstream, e-commerce for consumer packaged goods is finally arriving. To thrive in an environment that can shift from moment to moment, organizations must become distinctly human at the core. For example, packaged goods executives seem to be lagging retailer executives in technology, and retailers may not be fully appreciating the impact of the changes in consumer preferences and demographics. A substantial majority of consumers were very concerned about what they are buying and eating, as well as where their food is coming from. The seven executives interviewed had experience in marketing, sales, operations, and/or information technology at consumer product companies. Written by: Social login not available on Microsoft Edge browser at this time. Deloitte food safety survey, 2014; Deloitte social media study, July 2014, Note: Analysis of social media posts from the United Study on the topics of “food safety” and “health and wellness.”, Deloitte Social Media Study, July 2014, Note: Analysis of social media posts from the United States on the topics of “food safety” and “health and wellness.”. The events of 2020 toppled the carefully laid plans of many organizations, but some are adapting to become more resilient than ever. Second, retailers seemed more focused on technology-related areas, such as social influence and digital marketing, than the consumer product respondents were. Here are the 10 key trends for 2020 (source: Deloitte): To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Trend 1: The social investor. Challenge to current model: Tremendous shifts are likely in brand portfolio, innovation strategy and capabilities, and ecosystem partners as companies move toward a health and wellness platform. These dynamics have the potential to undermine not only historical sources of profitable growth but also historical sources of competitive advantage, and render traditional operating models obsolete. Taryn Luntz, “Already facing supply crises, corporations craft resource plans,”, Timothy Hay and Evelyn M. Rusli, “Food startup Hampton Creek raises $90 million led by Horizons, Khosla,”, Hay and Rusli, “Food startup Hampton Creek raises $90 million led by Horizons, Khosla.”. In India, for instance, the company achieved such a balance in 2010 and 2011; in 2011, PepsiCo restored 14.7 billion liters to the environment in India, more than the 6.3 billion liters of water that it used in its Indian operations.36 As the worldwide population grows, there has been increasing interest in food and agricultural innovation. It means considering moving from reactive, beyond responsive, to an intuitive enterprise that is continually sensing and shaping markets to redefine the frontiers.39 In many cases, consumer product executives know what to do, but their speed of execution and completeness of action may be insufficient (see figure 3). Furthermore, the US consumer packaged goods market is unlikely to grow beyond the rate of population growth, and small players may be better positioned to take market share from traditional industry leaders. Josh Sosland, “Kraft faces barbell burden,”, Kraft Foods Group, Inc., “The New Kraft Foods Group Investor Day,” presented at SeaPort Boston World Trade Center, Boston, Massachusetts, September 7, 2012, http://ir.kraftfoodsgroup.com/events.cfm; Kate MacArthur, “Why Kraft changed its innovation strategy and what happened next,”. In 2014 alone, there were eight weather and climate disaster events across the United States.16. Deloitte’s 2020 Global Human Capital Trends survey of over 9,000 business and HR executives in 119 countries revealed that leaders are moving boldly to activate the social enterprise—an enterprise whose mission combines revenue growth and profitmaking with the need to respect and support its environment and stakeholder network. During in-store shopping, technology can enhance the in-store product experience and deepen the brand conversation to help consumers save time and make better decisions. Brand and product portfolios designed for traditional economies of scale may no longer seem relevant. Growing hand in hand with digital commerce is last-mile delivery of consumer products to the home. Because no one knows exactly how marketplace dynamics will eventually play out over the next five years, consumer product companies should be prepared to operate amid uncertainty. Third, understanding consumer preferences was considered more important by consumer product and food and beverage executives than by retailers. Deloitte recently released their Tech Trends report for 2020, which gives insight into the newly identified key players and driving forces behind the world’s developing business and digital landscape. However, when it comes to food brands on the topic of food safety, almost 34 percent of the discussion was negative. Embedding human principles into the nature of work--principles such as purpose and meaning, growth and passion, and collaboration and relationships--enables the social enterprise to continually reinvent itself on the back of perpetual disruption. Trend 4: Dynamically managing risk. Deloitte Publishes Inaugural 2020 Global Marketing Trends Report: Identifies Seven Key Trends to Help C-suite Leaders Place Humans at the Center of Their Work Customer Experience Management By PRNewswire On Oct 16, 2019 Organizations are emerging from the pandemic to more fully become social enterprises, promising workers greater belonging without compromising individuality, job security through reinvention, and new opportunities from uncertainty.. Drenched in a paradox that combines technology with the human experience, these were three major findings from the 2020 Deloitte Global Human Capital Trends … When it comes to food safety and food companies, a majority of consumers were concerned about aspects such as safe packaging (75 percent) and accurate labeling (66 percent).42 Not surprisingly, a substantial consumer segment also associated characteristics such as natural (33 percent) and organic (31 percent) with food safety. DTTL and each of its member firms are legally separate and independent entities. Fifty-five percent reported an annual household income of less than $50,000, 27 percent earned between $50,000 and $99,999, and 18 percent earned $100,000 or more. For example, it offered tiered pricing in the cheese aisle, offering Velveeta Singles and Kraft Singles for the low- to mid-income consumer while selling Kraft Deli Select cheese slices at a higher price point. According to Tony Vernon, former CEO of Kraft Foods, “Families in the middle [are] in fear of moving lower. We need to move beyond experimenting with direct-to-consumer storefronts, and develop a working online business model to drive growth.”—Packaged goods marketing executive Our third uncertainty posits an environment in which consumers completely immerse themselves within a digital world, and the traditional brick-and-mortar business model becomes less viable—or perhaps even irrelevant. What challenges could the consumer product industry be facing five years from now? In a world where customized products and personalized, targeted marketing experiences win companies market share, technologies like digital commerce, additive manufacturing, and artificial intelligence can give a company an edge by allowing it to create customized product offerings. Trend 2: Getting partnerships and joint ventures right. Nidal Haddad, "The intuitive enterprise: Enterprise-wide change is necessary to leapfrog to an intuitive enterprise," Deloitte, http://www2.deloitte.com/us/en/pages/consulting/articles/the-intuitive-enterprise.html, accessed June 22, 2015. We look forward to your participation. Please see www.deloitte.com/about to learn more about our global network of member firms. PetfoodIndustry.com, “Purina offers ‘Just Right’ personalized dog food,” November 3, 2014, http://www.petfoodindustry.com/Purina_offers__just_right__personalized_dog_food.html. Rich resides in Chicago during in his personal time Rich enjoys wine, cooking, reading, travel, and is an enthusiastic fan of Chicago's professional sports teams (Go Cubs Go).Georgia. Respondents were screened to target consumers who did at least half of their household’s shopping and food preparation. The convergence of enterprise technology trends will continue to profoundly transform all businesses and unlock potential for innovation, Deloitte’s 2020 Tech Trends report reveals.. Given the multitude and potential magnitude of these projected marketplace changes, speed is equally critical. The website also considers dietary preferences (for example, inclusion of chicken, lamb, salmon, grains, or soy) and allows consumers to personalize the package with the pet’s name and picture.28 The website uses automated reminders so that consumers can conveniently reorder the customized blend before they run out of dog food.29 “Just Right by Purina” launched across the United States in October 2014, after an initial testing phase that began in March 2014. But, “CIOs are already charting a promising path toward tomorrow,” the firm says. She has also served in key leadership roles with Deloitte’s Women’s Initiatives and Junior Achievement. http://www.deloitte.com/us/consumerproducts. Instacart is a grocery delivery service that provides consumers with a third-party personal shopper that picks up and delivers groceries to them.9 Instacart shoppers pick up groceries at national retailers, as well as at local retailers, in 16 metro areas across the United States. Across food and beverage categories, we expect companies to continue acquiring brands perceived as healthier and experimenting with reformulating products with ingredients that are perceived as healthier, such as low-calorie natural sweeteners. A confluence of marketplace changes (figure 2) means that, for consumer product companies, the traditional levers for building loyalty are likely becoming less and less effective. The likely consequence: More frequent shortages of natural resources, including water, will cause more supply chain disruptions. Fourth, consumer product manufacturers and retailers were more interested in better understanding retail channel preferences than were food and beverage executives, revealing areas where consumer product companies can help retailers with their consumer and cross-channel experience. Still other consumers are focusing on the well-being of their community and on their community’s values—which, more and more, include concepts like “green,” “local,” and “back to nature.” Today, a sizable portion of consumers describe themselves as health-conscious shoppers (47 percent). 6 2020 Global Marketing Trends: Bringing authenticity to our digital age. According to Brian Lester, director of Marketing for Just Right by Purina: “So far, people have responded well to it . The presentation will provide insights into Deloitte's 2020 Global Human Capital Trends report. Rich earned his undergraduate degree in engineering from Kettering University and his MBA from Columbia Business School. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. To help executives plan and act amid these undercurrents, we have developed five sets of specific steps that may help address each of the five potential uncertainties described on page 5 (figure 2). He routinely advises the boards, CEOs and executive teams of Consumer Product companies on topics spanning growth, business model innovation, operating models, capability building, analytics, and technology adoption. 22. has been removed, An Article Titled Consumer product trends First, an industry that was raising the bar on climate goals now appears poised to vault that bar sooner thanks to a raised floor, as renewables abruptly acquired a higher share of electricity demand. Jerky, ” November 1, 2014, http: //www.petfoodindustry.com/Purina_offers__just_right__personalized_dog_food.html serves as the leader of 's. Deloitte’S USI ( DCIPL ) Board more frequent shortages of natural resources, commercial. 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