Eight major predictions for the food and beverage industry in 2024
January 10, 2024
After experiencing ups and downs in 2023, how can we make money in 2024? That is to grasp the development trend of the industry. Only by riding the ride of the trend can we seize the opportunity and find our own trend.
01 Health products become a necessity
The sugar free tea drink market is very popular in 2023, which reflects the increasing demand for healthy products from consumers. In the future, three no products (0 additives, 0 preservatives, and 0 pigments) will become mainstream. At the same time, low sugar, low-fat, and low calorie products will also receive consumer attention.
02 Consumer recovery becomes a fixed trend, and brand competition will intensify
In 2024, the economy will develop well. Although there may be setbacks, the overall outlook is optimistic. However, for brands, internal competition will continue to intensify. In addition to competing with products, innovation, and channels, they also need to compete with prices, consumers, and marketing content.
For brands, it is undoubtedly a huge challenge, and how we succeed depends on how we position ourselves, whether to produce high-quality high-end products or high-end cost-effective products. Brands need to combine their own actual situation, rather than blindly following the trend.
03 Matthew effect is obvious, leading brands have more advantages
In the food and beverage industry in 2024, there were only top brands and non top brands. As consumers gradually regained their rationality in shopping, cost-effectiveness became the core criterion for most consumers to choose products. Top brands have more brand influence and stable channels, making them easy to expose to consumers. In addition, top brands can achieve total cost leadership, making them more competitive in the distribution process.
Therefore, becoming a top brand will be the only goal that regional and growth oriented brands can achieve. Only by becoming a top brand can they have greater exposure.
04 The Era of Hard Discounts Comes
Currently, China has entered the era of hard discounts, and discounting will become the main force of future retail formats. Therefore, how brands can adapt to the discounting retail format is an important task in 2024. Whether to abandon cooperation with the discounting retail format or actively embrace it is a choice for brands. Although China's channels are diversified, the discounting retail format will face greater advantages, Can aggregate more consumers. Perhaps exchanging profits for sales is the top priority for brands in 2024.
05 Changes in consumer structure, affecting brand innovation paths
Small structured families, late marriage families, and aging population are the current situation of China's population structure, which will affect changes in consumer demand. For example, home-based economy, health foods, natural foods, nutritional health, functional, and fun products will be more popular, and changes in consumer structure will affect the path of brand product innovation.
How to better meet consumer needs will become the focus of brand research and development.
06 Online traffic peaked, offline traffic returned to growth
With the growth of internet traffic peaking, the cost expenditures of brand owners online are increasing. Therefore, returning to the offline market will become a new choice in 2024. Nowadays, discount supermarkets have spread throughout first tier cities and are gradually moving towards lower tier markets. The mature development of O2O, instant retail, and community group buying will provide new ways for brands to open up offline channels.
07 Increase advertising budget and increase brand exposure
At the end of 2023, several listed companies have made it clear that they will increase their media advertising budgets in 2024, which will help brands increase brand exposure and influence in various channels. It seems that in order to not be forgotten by consumers, increasing advertising budgets is also a reflection of brand strength. Especially in the era of self media, everyone can become an IP, and brands must increase their brand exposure in order to gain an advantage in the public IP.
At the same time, participating in industry exhibitions has also become an important choice for brands in 2024. Although mobile internet has matured, after comparing online product selection in recent years, brand owners have found that online channels are easier to connect with the C-end, while offline exhibitions can aggregate high-quality distributors. When brands return to offline and build their own distribution channels, participating in industry exhibitions will become an unavoidable topic.
The industry is developing well in 2008, and we need to do our best
Overall, the trend of positive development in the food and beverage industry in 2024 will not change. Consumers are more rational, but it does not mean that demand is weakened. We are more sensitive to prices, but it does not mean that there is no demand for high-end products. In the era of consumption stratification, individuals also have different needs. How to find and meet them is the key to finding competitiveness for brands.
So, to be good at oneself, the most important thing is not to compete with peers, but to compete with oneself. More precise marketing, more efficient management, lower operating costs, attracting more outstanding talents, and finding more suitable partners are the key to winning the brand war in 2024.
