A Datamonitor report
Targeting Profitable Consumer
Trends In Brazil, Russia, India
and China
Insights into Emerging Groups & Behaviors in
BRIC
Providing you with:
• Detailed analysis of consumer lifestyles
Published: Dec-06
Product Code: DMCM4581
and needs and the future development of
trends for consumer packaged goods
players to target
• Unique consumption data by demographic
segment across food, beverage, alcoholic
drinks and personal care sectors
• Detailed analysis of consumer lifestyles,
attitudes and needs affecting the packaged
Use this report to...
Gain insight into the key issues and future
development of an established consumer
society in the BRIC region
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goods sectors and the influence of these on
buying behavior
• Detailed Action Points pinpointing how to
fine tune your strategy and devise effective
marketing concepts in this region
Targeting Profitable Consumer Trends In Brazil, Russia, India and China
DMCM4581
Introduction
Brazil, Russia, India and China (BRIC) markets have huge potential for the
development of a stable consumer society that can be profitably targeted by
consumer packaged goods players across the globe. Although the BRIC region
requires further social cohesion and economic development to fully stabilize,
players that act quickly and tailor their offering can reap significant rewards.
Many demographic and lifestyle trends that are associated with developed Western markets are
increasingly applicable to consumers in the BRIC region. For instance, aging populations and
changing family dynamics are trends playing out in at least 3 of the 4 countries. The core
consumer trends of convenience, health and sensory orientated consumption are also
beginning to emerge. This suggests that successful branding concepts from Western markets
have the potential to appeal to the huge consumer base that exists via the BRIC nations. The
insights and actions within this report provide a foundation for this.
Key findings and highlights
• The potential for a burgeoning middle class is positive yet variable across the BRIC
countries. For example, Brazil and India have the most stable middle class potential,
whereas in China this group is concentrated in urban areas, however, even in China the
middle class is forecast to be larger than the entire US population by 2010.
• Health problems, such as hypertension and obesity, will prove major challenges to BRIC
countries as their population’s age. Although hypertension prevalence exhibits lower growth
rates than obesity, it is a larger problem overall in Brazil, India and China. In China and
India it affects 21% and 22% of the total population respectively.
• Product branding and packaging will need to be unique and tamper-proof to overcome the
counterfeit problem. Selling trust and product quality to the growing consumer society in any
BRIC market will be arguably more important than in developed markets where safety and
quality of products is now often taken for granted.
Reasons to buy
• Gain insight into the key issues and future development of an emerging consumer society
in the BRIC region
• Identify which consumer groups and unmet needs to target for profitable future growth
• Improve your marketing strategy by tailoring your offering to the most important consumer
trends
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Targeting Profitable Consumer Trends In Brazil, Russia, India and China
DMCM4581
Table of contents
EXECUTIVE SUMMARY
• The hot topic
• The future decoded
- The middle class is emerging as a significant
group in the BRIC region
- The BRIC region will have an increasingly aging
population in the future
- Health will become an increasingly important issue
- BRIC countries have distinct national traits
• Action points
THE FUTURE DECODED
• Context - understanding the BRIC region
- The emergence of the 'BRIC' moniker
- PESTLE analysis of the BRIC region
- Socio-demographic overview
• TREND: There is a burgeoning middle class
emerging in the BRIC markets
- The potential for middle class expansion varies by
BRIC market
- Brazil's open and relatively stable democracy
bodes well for the future development of the
middle class
- The once precarious state of the middle class in
Russia is now stabilizing
- Of all BRIC markets, India's knowledge economy
has the most stable middle class potential
- China's middle class is strongest in urban areas
• TREND: There is an aging of BRIC populations
- The rapid evolution of middle classes, combined
with a demographic shift in favor of seniors, will
enable BRIC countries to emulate Western
markets
- BRIC countries have broadly enjoyed young
population bases in the past
- Overall there is an aging of the BRIC region but
there is some important variance
- Brazil is experiencing a rapidly aging population
- Russia - declining life expectancy and birth rates
create a worrying population decline
- India - the aging population is a concern for the
longer term rather than the medium term
- China - rapid aging of the population is having a
fundamental impact
- An aging population brings with it new needs
• INSIGHT: Dietary patterns in the BRIC countries
are highly diverse
•
•
•
•
- Meat and fish consumption varies between BRIC
countries
- Fruit and vegetable consumption and preferences
vary widely
- Bottled water consumption is rising rapidly in India
and China with slower growth in Russia and Brazil
INSIGHT: Health is a growing concern, particularly
as 'Western' diseases proliferate in this region
- Obesity and hypertension are increasingly
prevalent in the BRIC countries
- Sales of nutraceuticals and dietary supplements
are growing across the BRIC region
INSIGHT: Convenience is of growing importance to
select consumers on select occasions
- BRIC consumers are beginning to embrace
convenience focused meal solutions
- Consumer attitudes towards frozen foods are
developing as such foods become more widely
available
- A large proportion of BRIC consumers function
without washing machines and dryers
- Outsourcing laundry to domestic helpers remains
prevalent in all BRIC countries
- Approaches to washing and use of detergents
varies between countries
- Clothing odor and hygiene is a problematic issue
for BRIC consumers
- Dishwashers are seen as aspirational and are
rarely used by BRIC consumers
INSIGHT: Sensory and pleasure focused
consumption is increasingly prominent
- Consumption of pleasure orientated food and drink
is growing as more consumers are able to trade
up
- Food and drink flavor preferences vary slightly by
country
- Consumer packaged goods marketing claims
highlight shifting preferences among BRIC
consumers
- Takeaway food occasions are becoming popular in
BRIC countries
- Local foods are the most heavily consumed while
other ethnic dishes are gaining in popularity
INSIGHT: Consumption of food, drinks and
personal care reveal significant age and gender
differences
- Personal care consumption by age and gender
- Alcoholic drinks consumption by age and gender
“...Markets such as Brazil, China, India and Russia (BRIC) should be seen within the
context of a transitional period, moving in the direction of developed markets and
experiencing a marked aging of their populations in coming years...”
Datamonitor Analyst
www.datamonitor.com/consumer
- Soft drink consumption by age and gender
- Confectionery and savory snacks consumption by
age and gender
- Prepared meals consumption by age and gender
• Conclusions
ACTION POINTS
• Introduction
• ACTION: Prepare for the future with higher
premium products as the middle classes broaden
and deepen
- Link aspirational brands with aspects of popular
culture and fashion
• ACTION: Take existing mature brands into new
BRIC markets to develop as "cash cows" in select
cases
• ACTION: Take steps to protect intellectual property
- Work with regulating authorities and joint venture
partners to ensure the integrity of their brands
• ACTION: Target aging populations via product
development and marketing communications
- Target the older consumer group - their strategic
importance will only grow
- Make older consumers more inclusive with
"ageless marketing"
- Respond to the veneration of seniors in certain
societies
- Companies that adapt the quickest will thrive
• ACTION: Target the health and wellness trend
- Look to re-formulate existing products and market
them as better-for-you alternatives
- Introduce consumer education programs about
healthy eating and to build long-term brand trust
• ACTION: Target the need for time-saving devices
and services
- Incorporate convenience orientated product
attributes into your offerings
- Promote convenient products as a way of allowing
consumers to enjoy more family time
APPENDIX
• Definitions
• Research methodology
• How to contact experts in your industry
LIST OF TABLES
Table 1: Population growth in the BRIC region (millions),
2000-2010
Table 2: Population by family status in the BRIC region
(% of total population), 2000-2010
Table 3:
Table 4:
Table 5:
Table 6:
Table 7:
Table 8:
Table 9:
Table 10:
Table 11:
Table 12:
Table 13:
Table 14:
Table 15:
Table 16:
Table 17:
Table 18:
Table 19:
Table 20:
Table 21:
Table 22:
Table 23:
Table 24:
Table 25:
Table 26:
Table 27:
Table 28:
Table 29:
Table 30:
Table 31:
Table 32:
Population by ethnic background in the BRIC
region (% of total population), 2000-2010
GDP per capita (US$), 2000-2010, Brazil and
the US
Gini co-efficient, 2000-2010, Brazil
Income quintile distribution (US$), 2005, Brazil
Home occupancy ownership (%) and average
home price (US$), 2000-2010, Brazil and the
US
Gini co-efficient, 2000-2010, Russia
Income quintile distribution (US$), 2005, Russia
GDP per capita (US$ 1995), 2000-2010,
Russia and the US
Home occupancy ownership (%) and average
home price (US$), 2000-2010, Russia and the
US
Gini co-efficient, 2000-2010, India
Income quintile distribution (US$), 2005, India
GDP per capita (US$), 2000-2010, India and
the US
Home occupancy ownership (%) and average
home price (US$), 2000-2010, India and the
US
Gini co-efficient, 2000-2010, China
Income quintile distribution (US$), 2005, China
GDP per capita (US$), 2000-2010, China and
the US
Home occupancy ownership (%) and average
home price (US$), 2000-2010, China and the
US
Brazil population forecast (millions) by age
band, 2006-2010
Brazil population by age and gender (%), 2006
and 2010
Brazil life expectancy by gender, 2001-2010
Russia population forecast (millions) by age
band, 2006-2010
Russia population by age and gender (%),
2006 and 2010
Russia life expectancy by gender, 2001-2010
India population forecast (millions) by age
band, 2006-2010
India population by age and gender (%), 2006
and 2010
India life expectancy by gender, 2001-2010
China population forecast (millions) by age
band, 2006-2010
China population by age and gender (%), 2006
and 2010
China life expectancy by gender, 2001-2010
Meat and fish consumption per capita in the
BRIC region (kilograms), 2000-2010
“...All of the BRIC markets have massive potential for overcoming their past
economic underperformance and establishing the most stabilizing of forces –
a prosperous and egalitarian middle class...”
Datamonitor Analyst
Targeting Profitable Consumer Trends In Brazil, Russia, India and China
DMCM4581
Table 33: Fruit and vegetable consumption per capita in
the BRIC region (kilograms), 2000-2010
Table 34: Most popular five vegetables and fruits by
consumption, Brazil 2005
Table 35: Most popular five vegetables and fruits by
consumption, Russia 2004
Table 36: Most popular five vegetables and fruits by
consumption, India, 2005
Table 37: Sales of bottled water in Brazil by type (Liters,
millions), 2000-2010
Table 38: Bottled water consumption in Russia (Liters),
2000-2010
Table 39: Sales of bottled water in Russia by type (Liters,
millions), 2000-2010
Table 40: Sales of bottled water in India by type (Liters,
millions), 2000-2010
Table 41: Sales of bottled water in China by type (US$m),
2000-2010
Table 42: BRIC countries, incidence of obesity (millions),
2000-2010
Table 43: BRIC countries, incidence of hypertension
(millions), 2000-2010
Table 44: Nutraceutical and OTC vitamin & mineral sales
in the BRIC region (US$ millions), 2000-2010
Table 45: Nutraceutical and OTC vitamin & mineral
expenditure per capita in the BRIC region
(US$/head), 2000-2010
Table 46: Ready meal sales per annum, Brazil, 20002010
Table 47: Ready meal sales per annum, Russia, 20002010
Table 48: Ready meal sales per annum, India, 2000-2010
Table 49: Ready market value by type (US$ m), China,
2000-2010
Table 50: Frozen food sales per annum, Brazil, 20002010
Table 51: Frozen food sales per annum, Russia, 20002010
Table 52: Frozen food sales per annum, India, 2000-2010
Table 53: Frozen food sales per annum, China, 20002010
Table 54: Clothing detergent sales by type in Brazil
(US$m), 2000-2010
Table 55: Clothing detergent sales by type in Russia
(US$m), 2000-2010
Table 56: Product features of clothing detergents
launched in India, Jan 2001- Aug 2006
Table 57: Consumption of pleasure orientated food and
Table 58:
Table 59:
Table 60:
Table 61:
Table 62:
Table 63:
Table 64:
Table 65:
Table 66:
Table 67:
Table 68:
drinks by volume in the BRIC region, liters
million, 2000-2009
Brazil: Top 15 flavors in new food and drinks
launches (% of total launches), Dec 05-06
Russia: Top 15 flavors in new food and drinks
launches (% of total launches), Dec 05-06
India: Top 15 flavors in new food and drinks
launches (% of total launches), Dec 05-06
China: Top 15 flavors in new food and drinks
launches (% of total launches), Dec 05-06
Brazil: Top ten on-pack marketing claims in new
food and drinks launches (% of total launches),
Dec 05-06
Russia: Top ten on-pack marketing claims in
new food and drinks launches (% of total
launches), Dec 05-06
India: Top ten on-pack marketing claims in new
food and drinks launches (% of total launches),
Dec 05-06
China: Top ten on-pack marketing claims in
new food and drinks launches (% of total
launches), Dec 05-06
Takeaways in Brazil, 2004-2009
Takeaways in China, 2005-2010
Definitions of terms used in the report
LIST OF FIGURES
Figure 1: PESTLE analysis of Brazil
Figure 2: PESTLE analysis of Russia
Figure 3: PESTLE analysis of India
Figure 4: PESTLE analysis of China
Figure 5: Brazil's economy is based on services and
commodity resources
Figure 6: Over 50s as a proportion of total population
(%), BRIC countries and Western Europe, 1990
Figure 7: Over 50s as a proportion of total population
(%), BRIC countries and Western Europe, 2006
Figure 8: Over 50s as a proportion of total population
(%), BRIC countries and Western Europe,
forecast 2010
Figure 9: Still water dominates China's emerging bottled
water market, 2000-2010
Figure 10: Clothing detergents in Brazil highlight the fact
that they are designed for use in washing
machines
Figure 11: China's laundry detergent market is
fragmenting into specialist products
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Figure 12: BRIC countries: value of personal care
consumption by age group (% value), 2004
Figure 13: BRIC countries: value of personal care
consumption by gender (% value), 2004
Figure 14: BRIC countries: value of alcoholic drinks
consumption by age group (% value), 2005
Figure 15: BRIC countries: value of alcoholic drinks
consumption by gender (% value), 2005
Figure 16: BRIC countries: value of soft drinks
consumption by age group (% value), 2004
Figure 17: BRIC countries: value of soft drinks
consumption by gender (% value), 2004
Figure 18: BRIC countries: value of Impulse consumption
by age group (% value), 2004
Figure 19: BRIC countries: value of Impulse consumption
by gender (% value), 2004
Figure 20: BRIC countries: value of prepared meal
consumption by age group (% value), 2004
Figure 21: BRIC countries: value of prepared meal
consumption by gender (% value), 2004
Figure 22: The affluence and needs of the middle class
inevitably evolves
Figure 23: Unilever's healthy ice cream, Kibon Ades, has
been launched in Brazil
Figure 24: Nestle's Maggi Na Zdorovye! Salad Seasoning
was recently introduced in Russia
Figure 25: Nestle Rice with Lotus Seed is a new type of
nutritious baby food in China
Figure 26: Instill these product attributes in offerings to
capitalize on consumers' convenience related
needs and behaviors
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DMCM4581
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