Spring Awakening: Ten Trends for Q2
April 14, 2021, By: Todd Kaufman, VP of Business Development - After thirteen months of lockdown, closures and shelter-in-place orders, the end is nearing. For some, it’s here. As the warm weather begins to take hold, the term “spring awakening” has never had more meaning. Accelerated vaccine roll outs have led to cities all over the world gradually reopening offices, schools, restaurants, sporting arenas, gyms and more.
And consumers are looking for a refresh in every sense of the word. Having spent a year under restrictions, the fatigue of sameness is leading consumers to break routines and create new habits that bring connection, happiness and confidence. For those fortunate enough to have saved discretionary income over the last year, the dam is expected to burst, leading to an influx of spending on goods and experiences.
Following are ten trends that will reinvigorate consumers as we shed our collective cocoons this spring.
Functional Foods
While COVID led to some seriously indulgent food trends, it also sparked massive consumer interest in foods and beverages that deliver nutritional benefits with qualities such as immunity, gut health and protein content.
Whether healthy or indulgent, consumers are consistently looking for a “plus-one” in what they consume as well as messaging about the right consumption occasion. The Naked Collective’s Mude Beverages tout claims such as immunity, energy and sleep on its packaging.
Additionally, manufacturers are combining better-for-you ingredients with indulgent flavor profiles to offer consumers guilt-free meal and snack options. Magic Spoon plays to Millennials’ love of nostalgia and cereal as well as their health-conscious purchase habits with an allulose-sweetened, high protein assortment of cereals.
Spike It!
Spiked seltzer has aged out of “trend” as it is now one of the fastest- growing alcoholic beverages in the world, with a projected market size of $14.5 billion by 2027. With most offerings coming in around 100 calories and <2g of sugar, spiked seltzer appeals to health-conscious drinkers who are looking for flavor and function in their alcoholic beverages.
The news in the category is the continued influx of established brands, alcoholic and non, entering the market. Given the similarities in production methods to beer, breweries large and small have been leveraging their product development, canning and distribution capabilities to grab shares of the this rapidly growing category.
From mass to craft, we’ve seen beer brands such as Budweiser, Coors, Corona and Montauk launch versions of the low-sugar drink. Established sparkling water brands, Spindrift and Topo Chico (owned by Coca-Cola) are launching their versions this year.
On the branded side, Sonic is launching a line inspired by their iconic slushee flavors this summer in the U.S. and Gordon Ramsey is launching Hell’s Hard Seltzer in the U.K.
Gloom and Zoom
Zoom was a lifeline for us in 2020. It kept employees engaged and families connected. But after a year of intensely staring into other people’s eyes, feeling self-conscious about seeing your own face and worrying about uncontrollable factors such as screen freezing and child/pet interruptions, more than three-quarters of employed adults are experiencing work burnout.
Employers are responding with benefits such as mental-health seminars and no-meeting days. And some have taken it a step further. LinkedIn surprised employees with a week off to reduce stress and prioritize self-care and/or family time. Peloton, gave its team a “moment to breathe” and paused online classes for two days. And several other companies have implemented a Mental Health Day holiday to give employees a chance to disconnect and recharge.
Screen breaks, avoiding burnout and prioritizing mental health will be top of mind for everyone as we return to normal.
Up in the Gym
While at-home workouts saw exponential gains during lockdown, no screen can substitute for the in-person motivation and tribalism that group fitness classes provide. In the U.K., 57% of gym members have cited classes as the reasons they want to return to gyms.
In New York City, indoor classes have returned at 33% capacity, leading many to reactivate their gym memberships. From large chains such as Equinox and SoulCycle to independent studios, health-conscious consumers are rejoining their fit fams and re-establishing their pre-COVID routines.
Expect in increase in brand loyalty and affinity as well as a burst in spending on activewear as gym goers want to look and feel their best.
Let the Kids Play
After a year of Zoom school, kids are returning to in-person learning. In the U.S., the percentage of children in fully remote classes has dropped to 16%. In the U.K., 94% of primary school children and 89% of secondary school students are learning in-person.
The impact is yet to be seen on the world of educational technology platforms such as Google Classroom, which was a lifeline to students, parents and teachers throughout the pandemic.
Outside of the classroom, enrollment at summer camps is returning to normal levels after almost half of day camps and almost all overnight camps were closed. Expect parents to continue to seek interactive experiences for their children that provide much-needed socialization and physical activity after the lost year.
Goodbye Sweatpants, It’s Been Nice
COVID created the “Homeleisure” category and retailers saw exponential increases in sales of leggings, joggers and sweatshirts. But as stay-at-home orders continue to be lifted and offices and restaurants increase their capacity limits, consumers are re-embracing a relic from 2019: Real clothes!
Tired of the same old, consumers are looking to apparel and accessories to break routines and feel fresh and new. Gen Z and Millennials can continue the debate about skinny versus wide-legged, but denim, along with dresses and footwear is projected to see continued increases throughout the year.
While category spending will shift, the method of purchase will remain consistent as consumers will continue to embrace the convenience of online shopping and curbside pickup.
Spa Day
After trying at-home mani-pedis, haircuts and facials, consumers are more than ready to turn that work back over to professionals. According to The Atlantic, “Americans are ready to look hot again.”
In the U.S., GlossGenius, a beauty industry bookings-and-payments platform, shows nationwide bookings up 20%. In the U.K., salons opened on April 12th and are fully booked for the next month. Online booking service Treatwell saw a 432% increase in bookings after openings were announced.
From Botox to brows to blowdrys, bookings are projected to continue to increase throughout the year as consumers seek professional services that enhance their appearance and build confidence as they re-enter the world.
Front Row Pods
Done are the days of cardboard cutouts in sports stadiums and celebrities singing “Imagine” for our musical entertainment.
Sports and concerts are all welcoming people back. Capacity limits range from 20%-100% and vary by state. In the U.S., MLB’s Texas Rangers welcomed a sellout crowd of over 38,000 fans for Opening Day, while the New York Mets were limited to approximately 8,000 fans.
In both the U.S. and U.K., music fans are snapping up tickets for festivals in anticipation of their reopening this summer.
Live events will be a major opportunity for brands to engage with consumers out of the home in 2021.
Take My Order Please
Perhaps no sector was hit harder by the pandemic than the restaurant industry, with over $240 billion in losses and over 100,000 locations closed. Consumers adapted and filled the void by baking bread, whipping up lattes and honing their skills in virtual cooking classes.
Now restaurants are storming back into the minds, hearts and stomachs of consumers, who are more than happy to let somebody else do the cooking. And the dishes! As restrictions on indoor capacity and party size continue to be lifted, and the weather allows more diners to enjoy outdoor seating, restaurants are seeing an uptick in customers for the first time in over a year.
Takeout continues to be an engagement opportunity for restaurants as well. In the U.K., Just Eat Takeaway said orders were 88% higher in the first two months of 2021, with delivery orders up by more than 600% compared with a year earlier.
Man’s Best Friend
Research shows that 11.3 million Americans got a new pet during the pandemic and nearly half of all British households who currently own a pet got at least one new animal during lockdown.
Globally, sales of pet products exceeded $200 billion in 2020. In the U.S., Petco saw sales jump 10% to $4 billion in advance of its IPO. And premium DTC pet gear brand Fable more than tripled their sales projections. In the U.K., Naturo Natural Pet Food used ecommerce to become the #1 natural pet food brand in Britain and has continued to see success with a 64% increase in online sales in Q1 2021.
With a significant amount of new pet owners, as well as increased consumer adoption of the digital purchase experience, sales are projected to increase globally over the next several years.