Brands will need to be agile to counter this year’s challenges. Food inflation and pressure on household spend means that for many consumers one method of managing their spend will be to shop for more items in a cheaper store or switch to a slightly cheaper brand or own label equivalent. Being physically and digitally available in as many places as possible to counter increased shopping around will be key. It is also worth noting that this movement from brands to own label is not homogenous. For some brands in specific categories the treat and enjoyment of a consumer’s favourite product may be one of the sacrifices that they are not willing to make. Brands will need to work harder than ever to demonstrate what makes them uniquely different to the other products on the shelf and how they can appeal to more consumers. Similar to the rest of Great Britain, Scottish brands will also need to navigate the macro influences below.
• With tougher economic times ahead, history tells us that how brands frame the value that they offer to consumers will become a more significant factor in their success as retailers compete with each other to demonstrate their own value messaging.
• Glasgow hosted the 26th UN Climate Change Conference (COP26) in November last year. With government, industry and consumers themselves expecting more action from brands, the sustainability agenda may have taken a temporary back seat to the cost-of-living, but it will continue to exert influence and come to the fore again. An example of this is the Deposit Return Scheme which, although delayed, has at its core the aim of a circular economy and reduction in plastic waste which continues to be important to shoppers.
• Scotland’s relationship with obesity is a nationwide challenge and as pressure grows on consumers to make healthier choices, coupled with government intervention, brands can expect further controls being placed on where and how they can advertise and promote. If and when HFSS legislation is introduced in Scotland, it will impact store layout and promotional strategy. • And finally, global events have exerted more influence in the last five years than the market has seen before. Brexit, the pandemic, and the war in Ukraine have all impacted on domestic supply chains, energy and transport costs. These have then directly impacted on brand manufacturers and retailers with increases in oil, fertiliser, vegetable oil prices and feeding costs expected to exert further pressure on costs, driving food inflation for consumers. The brands that continue to appear on this list in the future will have focused on understanding shopper behaviour, developing what makes them unique, growing their categories, targeting new needs and moments whilst ensuring that they are available in as many places as possible
For more information, please contact:
Lesley Ann Gray, Strategic Insight Director, Scotland Lesleyann.gray@kantar.com 07810 853154
