Premiumization and Indulgence - Consumer TrendSights Analysis, 2023

Premiumization and Indulgence - Consumer TrendSights Analysis, 2023

Summary

Trendsights Analysis on Premiumization & Indulgence explores how consumers seek premium products in all categories in the market. The trend is a part of the Sensory & Indulgence mega-trend, and focuses on how brands provide added value to their premium goods to make them more appealing and sophisticated.

During times of busy lifestyles and poor work-life balance, consumers seek products that will help them relax, ease anxiety and provide the feeling of treating themselves. Thus, individuals look for goods which are better quality, more sophisticated and often available at a higher price than their non-premium substitutes. Brands often embrace the trend of premiumization by providing additional value to products and services, which can also justify the extra costs related to the ‘premium’ range.

Scope

• In majority of sectors consumers consider good value for money as low price and high quality of a product. Therefore, combining these two features might be a way for brands to reach out to a wider audience – those who would like to try premium goods but cannot afford them at a full price.
• As the health-oriented trend is growing, buyers might be more inclined to purchase premium options in categories which directly affect one’s wellbeing, such as food, household products and healthcare.
• Consumers’ main incentive to seek premium goods is pleasure-seeking, emotional attachments and increased-focus on health.

Reasons to Buy

• Understand the reasons why consumers look for premium products in the market.
• Identify which product features are perceived as good value for money and when individuals are leaning towards more 'premium' options.
• Understand consumers' future plans towards purchasing luxurious and expensive goods.