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Megatrends Megatrends are long-term, consumer-driven trends that disrupt industries globally. We show you how to leverage megatrends to stay relevant and competitive in rapidly changing, consumer-centric markets.

The Importance of Quantifying Megatrends: Unveiling Future Opportunities

9/21/2023
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In today's rapidly evolving business landscape, staying ahead of consumer trends is crucial for companies to remain relevant and competitive. Megatrends, the long-term consumer-driven shifts in behaviour and values, play a pivotal role in shaping industries and economies.


Why do you need to quantify megatrends?

Quantifying megatrends gives businesses valuable data-led insights into consumers’ spending patterns associated with specific trends. Companies can leverage the data to anticipate the future direction of spending, identify growth opportunities and uncover which markets offer the most potential for investments.

UAE is expected to see the biggest increase in per capita propensity to spend on products and services relating to the personalisation megatrend between 2022 and 2027, with a CAGR of nearly 8%

Source: Euromonitor International's Megatrends Quantification Model

This compares to just 1.7% globally. With this in mind, companies can explore further to understand the specific opportunities in the United Arab Emirates that can be leveraged.

By taking both a quantitative and qualitative approach to megatrends analysis, companies are able to bridge the gap between broad consumer need concepts and actionable strategies based on spending patterns, giving them greater confidence when prioritising innovation investment decisions.

How can our quantification model help your business?

Euromonitor International’s megatrends quantification model uses a multi-step process that combines data analysis, trend evaluation and expert consultation.

The first step in the process is to identify specific sales value data from across categories that indicate consumers’ propensity to purchase products aligned with each megatrend. Then, to understand how the trends will evolve over time, data points related to economic, social, demographic, technological and environmental drivers are considered. These drivers help shape the trajectory of each trend and provide insights into future consumer behaviour. The analysis is then validated through consultation with in-house experts who possess deep industry knowledge and work closely with organisations worldwide.

The result is a quantified evaluation of future opportunities for growth

Our quantification model highlights consumers’ propensity to spend on products and services that align with specific megatrends, helping companies determine which megatrends to focus their innovation strategies on to stay relevant and drive future success.

Looking at per capita CAGR in the chart below, we can see the largest potential between 2022 and 2027 sits within the convenience, digital living and shopper reinvented trends. This clearly reflects consumers’ focus on immediacy and time-saving solutions across everything they do, their desire to incorporate advanced technology in all areas of their life and how they are shopping more, not just online, but through alternative channels and platforms from social media and in-game to the metaverse.Global Consumer Propensity to Spend

What are the benefits of quantifying megatrends?

  1. Enhanced strategic planning: Quantifying megatrends increases businesses’ comfort levels when making investment decisions and developing effective strategies. By understanding which trends are most significant and how they will evolve, companies can align their resources and efforts accordingly.
  2. Targeted market expansion: Quantitative analysis helps identify markets that offer the most potential for specific trends. This enables businesses to focus their expansion efforts on regions where consumer demand aligns with their product offerings, increasing the likelihood of success.
  3. Improved product development: Quantifying megatrends provides businesses with a clearer understanding of consumer preferences and priorities. This knowledge can guide product development, ensuring that offerings are tailored to meet evolving consumer needs and desires.
  4. Competitive advantage: By quantifying megatrends, companies gain a competitive edge by staying ahead of market shifts. They can proactively adapt their strategies and offerings to capitalise on emerging trends, positioning themselves as industry leaders.

Quantifying megatrends is a vital tool for businesses, which, used alongside qualitative megatrend analysis, enables businesses to evaluate opportunities more thoroughly and better understand portfolio investment needs to meet the demands of tomorrow’s consumers.

Download our white paper, Transform your Innovation Strategy with Megatrends, for in-depth trend descriptions, case studies and strategic recommendations.

Watch this video, How to Apply Megatrends Analysis to Your Strategy, to learn how to use megatrend analysis in your business.

 

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