Consumers are embracing products that have local credentials or claims as they consider these products to be better quality, healthier, more sustainable, more trustworthy, and more authentic than non-local alternatives. The trend captures a growing distrust, especially in the West, of globalization and big business, with consumers instead opting for local products as a way to reconnect with and support their local community. Research report titled “TrendSights Analysis: Localism – Meeting local needs through product positioning, production methods, and formulation” describe trend prevailing in the market among local consumers and their buying behavior which can be well utilized by FMCG companies.
- Anti-globalization – Consumers demand local goods as they trust these products and want to support local businesses.
- Sustainability – Consumers want to protect the environment as eco-consciousness grows.
- Tradition – Support for local and national traditions is a way for consumers to identify with products.
- Older consumers tend to be more influenced by this trend as they have a greater affinity and connection to their local communities.
- Consumers in more developed markets are the most likely to support localism because of the recent anti-globalization movement, particularly in the US and UK, which has reinvigorated demand for local products.
It has been studied that almost 42% of the consumers worldwide prefer domestic brands over international brands which makes local brands to sustain and compete on different level. Another study showed that almost 52% of consumers believe that the quality of products used to be available a decade before, no longer exists and today the quality is not competitive as compared to before.
- Product formulations must integrate more local, high-end, and sustainable ingredients to cover all the aspects of this trend. Additionally, localizing products with popular national flavors will also help products seem less foreign and more trustworthy, as consumers will appreciate products better suited to their specific tastes and familiarity.
- Packaging and marketing must focus on green credentials as consumers tend to associate local products with being eco-friendly. Emphasizing a lack of “food miles” and how natural or organic the product is will be vital to creating a premium position and illustrate quality to consumers.
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Ankur Gupta, Head Marketing & Communications