Ahead of the Olympics in Paris and other sporting events over the summer, new insights from Circana reveal how consumer behaviours and trends will provide fresh sales opportunities for FMCG retailers and manufacturers.
The group’s latest ‘Volume Vortex’ report, a survey of consumers across Europe, US and South Africa, outlines how firms can re-engage consumers across a wide range of age, income and gender demographics in an attention-deficit economy and a fragmented media landscape.
Themed events and informal gatherings in office environments and holiday venues, rather than major city centre hospitality locations, are expected to dominate sales of food, beverages, and general merchandise during the summer games in Paris. This shift is driven by the high costs associated with travel, event tickets, and city-based spending.
Circana notes that brands with limited budgets should consider targeting semi-rural and holiday areas where engaged, captive audiences are located away from busy cities. This strategy could lead to better marketing returns for retailers by focusing on less competitive locations.
Traditionally, high-income consumers were expected to flock to bars and cafes for the summer games. However, Circana’s survey data reveals that 56% of high-income households across the top six European grocery markets are planning to watch events at home, surprising many hospitality venues. However, 44% of consumers say they are open to or prefer out-of-home viewing. This dual trend presents a significant opportunity for grocery retailers and manufacturers to cater to both at-home (AH) and out-of-home (OOH) consumption preferences.
Circana stated that by strategically aligning product offerings, pricing, and promotional efforts, as well as investing in quick service delivery (QSD) partnerships, brands can significantly boost both sales and brand growth. Importantly, this approach offers an avenue for local and challenger brands to achieve effective market penetration without the need for large budgets.
In an expensive media and promotion marketplace, demand forecasting and media strategy need to be as focused as possible, which is why, across all regions, 24% of consumers said they are likely to make changes to the way they participate, purchase and consume during the biggest sporting event of the year.
Ananda Roy, Senior VP of Global Thought Leadership and Strategic Insights at Circana, said: “The evolving consumer habits around major sporting events, particularly the summer games in Paris, offer numerous opportunities and challenges for brands and retailers. The key lies in recognising these shifts and innovatively adapting media and advertising strategies to meet new consumer demands.”
Roy added: “By enhancing at-home experiences, rethinking delivery methods, or focusing marketing efforts on non-traditional locations like workplaces, offices, and holiday destinations instead of sports venues, the sporting arena offers abundant opportunities for those prepared to innovate and take decisive action.
“In today’s attention deficit economy, characterised by an overload of information and numerous media channels vying for limited consumer attention, it’s important to understand and respond effectively to these shifts in consumer behaviour.”
Other key insights from Circana’s study include eSports and gaming, traditionally separate from real-world sports events with hard-to-reach audiences, becoming areas for growth because of the advancement of consumer electronics, VR, and AI. With greater convergence between eSports and upcoming sports events, with mixed audiences, this evolving metaverse offers opportunities for targeted brand promotions, particularly in snacking, non-alcoholic beverages, and enhanced nutrition and hydration products.
Meanwhile, the report notes that 35% of singles across all income levels are less active in spending on leisure due to high costs and limited options. Typically, this group spends more on out-of-home activities and travel, but they are now cutting back. Brands focusing on the youth market will need to increase their efforts to engage this demographic, as their leisure spending is now viewed as becoming a discretionary choice.
Consumers aged over 45-years are likely to spend more at the summer games in Paris due to its unique history and significance, comparable to other global sports events. Circana said that brands targeting this age group can expect higher engagement, even though this demographic typically shows strong brand loyalty, tends to avoid switching brands, and is generally cautious with spending, except in certain categories.
