Megatrends: Premiumisation

Delivery

This report comes in PPT.

Key Findings

Premiumisation continues to be in demand amidst the cost-of-living crisis

Despite the current cost-of-living crisis, consumers continue to value premium products. This is driven by wellness, technological benefits and convenience. By being more discretionary in their spending, they purchase fewer items yet with better quality, to serve for their own self-love and building a better version of themselves.

Rising income and the attitudes of Gen Z consumers to spend more on themselves

Despite being cost-conscious, Gen Z consumers will arguably be one of the most important consumer groups for premium products and services, given the gain in their purchasing power by 2028. Moreover, they will also form the backbone of economic growth and will drive growth.

Consumers satisfy their own desires and wants through premiumisation

Consumers satisfy their own desires and wants, seeking greater value to specific benefits that serve their distinct lifestyles. This is done through looking for customised products and services that are personalised to their own liking, as well as indulgences and convenience solutions such as snacks and ready meals as well as luxury goods. 

Consumers spend more to build a better version of themselves

Consumers seek to become their “best selves” and enhance their wellbeing, demanding more healthy solutions that take care of their physical and mental/emotional wellbeing.  

Affordable premiumisation set to gain momentum

To cope with the high cost of living, consumers have normalised value-seeking products yet still demand affordable premiumisation. In response, brands are introducing this concept of “affordable premiumisation” where prices are lowered slightly and resold while still being positioned as premium to attract consumers.