Consumer Insights Report 2022 Discover what’s driving consumers in 2022 with insights designed to give you a clear map of the best way to build a powerful brand strategy that resonates with audiences. PUBLISHED BY Latana.com Welcome to the “Consumer Insights Report 2022”. Within this report, you will find a broad selection of insights into the priorities, drivers, aspirations, and values of consumers in 2022. This information is designed to give you a clearer picture of the marketplace that can be drawn upon when building your branding strategy and launching new marketing campaigns. In this report, you’ll get up to speed with consumer attitudes so you can align your brand with your target audience. You’ll learn what influences different demographics during the purchasing process to give you a more concrete understanding of what factors are worth investing in and which ones can be left on the cutting room floor. The report aims to demystify consumers in 2022, giving a deeper insight into how they are thinking and feeling by answering important questions that many marketers and brand managers have about their target audiences right now, such as: Are Millennial consumers as eager to reduce their carbon footprint as everybody assumes? Which groups make purchasing decisions based on emotions? When buying online, what factors positively influence consumers to finalize their purchases? Let’s find out! Latana www.latana.com © 2022 Latana Consumer Insights Report 2022 Latana.com Foreword Join Latana on Social Media P. 4 P. 5 P. 6 P. 17 P. 34 P. 47 P. 48 Introduction Methodology CHAPTER I Consumer Values: Mental Health & The Environment CHAPTER II What Factors Influence Purchasing Decisions? CHAPTER III Work, Life, Leisure, and Aspirations Conclusion Why Latana? Content Consumer Insights Report 2022 Latana.com In 2022, the slow departure of the COVID-19 pandemic from our headlines does not mean we are free from the consequences of two years of lockdowns and disruptions. Consumers have emerged from the pandemic with a long checklist of aspirations and new attitudes to work, life, leisure, mental health, and the environment. What form these new attitudes have taken often depends on a combination of factors — including consumers’ age, gender, level of education, or even whether they live in a city or in the countryside. Much slower, more predictable changes are also coming to the fore in 2022 against this backdrop of instability. As more and more of Gen Z come of age and enter the coveted and highly valuable 18 - 34 age group, their values, attitudes, and habits will become more important to marketers and brand managers than ever before. Millennials, on the other hand, are no longer the new kids on the block, and though they’ve long been portrayed as financially insecure, the oldest in this cohort are now in their 40s and driving a house-buying boom. Finally, there are the Baby Boomers, who are playing their own role in The Great Resignation by retiring in droves, a factor that will fundamentally change their outlook, their purchasing power, and priorities — especially if estimates are true that this generation is not financially secure enough to bow out from the working world quite yet. The purpose of this report is to provide a map of who consumers are in 2022, detailing their changing attitudes and priorities for the year ahead. With all of this in hand, you will have the resources to tailor your marketing strategy to fit the current climate and make sure your brand is resonating effectively with your target audience. So let’s get to it. Consumers are neither homogeneous nor static and keeping track of changing attitudes, aspirations, lifestyles, and purchase drivers across relevant demographics is a vital task for any brand wanting to stay ahead of the curve and achieve growth. 4 Introduction 2022 Consumer Insights Report 2022 Latana.com Methodology 1048 respondents (UK) 1051 respondents (USA) 2099 respondents UK & USA geography JANUARY 2022 For this report, we surveyed 2099 to research consumer priorities and lifestyles in 2022. Our research was focused mainly on attitudes towards work-life balance, mental health, the environment, the types of activities consumers take part in, and factors that influence purchasing decisions. The purpose of this report is to provide a detailed overview of consumers in 2022 to provide marketers and brand managers with a clearer understanding of the most important factors when building their campaign strategies. Our research is based on 2099 consumers, 1048 of which live in the UK, while the other 1051 live in the USA. The results of these respondents have then been segmented by differing characteristics. The research was conducted in January 2022. Consumer Insights Report 2022 Latana.com 5 Consumer Values: Mental Health & The Environment chapter I Consumer Insights Report 2022 Latana.com 7 I Consumer Values: Mental Health & The Environment A. Mental Health The COVID-19 pandemic has added extra momentum to the growing awareness that consumers have concerning mental health and wellbeing. Even before 2020, a burgeoning industry was catering specifically to these needs — including growing brands such as Headspace and Calm, while those that already focused on physical wellbeing began incorporating new services that addressed these changes. It is widely accepted that the pressures of lockdown restrictions were not felt evenly across society and younger generations are, in general, more mindful of new, more open discourse surrounding mental health. With this in mind, let’s take a look at how different segments of consumers expect to prioritize their own mental health in 2022. Consumer Insights Report 2022 Latana.com Do you expect to focus more or less on your mental health and wellbeing in 2022 than in previous years? To understand consumers’ expectations and priorities on mental health we asked: Our data for the general population was as follows: More so than in previous years About the same as previous years Less so than in previous years Don’t know 4% 3% 32% 61% Across the whole population, most people expect to focus more on their mental health and wellbeing in 2022 — as stated earlier, this is likely a reaction to the impact of the COVID-19 pandemic. Let’s dig deeper into how different segments responded to this q uestion 6 Gen X Baby Boomers Gen Z Millennials More so than in previous years More so than in previous years More so than in previous years More so than in previous years About the same as previous years About the same as previous years About the same as previous years Less so than in previous years About the same as previous years Less so than in previous years Don’t know Less so than in previous years Less so than in previous years Don’t know Don’t know Don’t know 3% 5% 35% 57% 5% 1% 2% 5% 6% 3% 23% 51% 26% 67% 42% 69% Looking across different generations we can see gradual differences in the responses as we move up the age scale from Gen Z to Baby Boomers. Despite this, only a small minority either don’t know or expect to focus less on their mental health this year and a large portion of Baby Boomers expect to focus more than in previous years. Generation Audience Insight Millennials expect to focus on their mental health and wellbeing more than any other generation with Gen Z closely following behind. Meanwhile, the majority of Baby Boomers polled expected to follow the same course as in previous years. This may be due to mental health still being considered “taboo” for older generations or it could also be that many new, more accessible mental-health services are mobile-first brands — which are less popular with older cohorts. 69% Millennials 42% Baby Boomers Consumer Insights Report 2022 Latana.com 8 Do you expect to focus more or less on your mental health and wellbeing in 2022 than in previous years? 6 9 6 Urban Millennials Rural Millennials Looking only at Millennials, (the generation most likely to focus more on their mental health in 2022), we can dig down into how rural and urban segments responded to the same question. This data shines a light on the expectations around mental health that both rural and urban consumers hold two years on from the start of the pandemic. More so than in previous years More so than in previous years About the same as previous years About the same as previous years Less so than in previous years Don’t know Less so than in previous years Don’t know 3% 2% 26% 69% 1% 3% 25% 70% Rural / Urban Divide Audience Insight Somewhat surprisingly, rural Millennial consumers are more likely to focus more on their mental health this year than their urban counterparts. During the pandemic, there was an assumption that those in urban areas, cooped up in small apartments and far from green spaces, had a harder, more mentally taxing experience during the pandemic. However, while rural consumers may have had access to open spaces and nature, it also compounded existing issues that rural communities face, such as poor access to public services and utilities. 69% Urban Millennials 70% Rural Millennials Do you expect to focus more or less on your mental health and wellbeing in 2022 than in previous years? Consumer Insights Report 2022 Latana.com 10 How likely are you to purchase a product in 2022 that is focused on your mental health and wellbeing? To further understand how the changing attitudes and aspirations surrounding mental health might affect consumers’ behavior over the course of 2022 we asked: Across the general population, more than half felt that it was likely they would purchase a product in 2022 relating to their mental health and wellbeing — which is a very promising number for any brands that offer these services and reflects a broader societal shift in how mental health and illness are understood and dealt with. Our data for the general population was as follows: Very likely Likely Neither likely nor unlikely Unlikely Very unlikely Don’t Know 6% 24% 5% 5% 34% 26% Consumer Insights Report 2022 Latana.com 6 11 Gen X Baby Boomers Let’s look at the same question, but consider how different generations responded. Gen Z Millennials Very likely Very likely Very likely Very likely Likely Likely Likely Neither likely nor unlikely Neither likely nor unlikely Likely Unlikely Neither likely nor unlikely Unlikely Very unlikely Neither likely nor unlikely Very unlikely Don’t know Unlikely Don’t know Unlikely Very unlikely Very unlikely Don’t know Don’t know 19% 5% 28% 6% 2% 5% 6% 5% 40% 21% 40% 27% 37% 19% 9% 5% 11% 3% 8% 2% 24% 37% 10% 35% Broadly matching the results from the first question, moving up through the generations from Gen Z to Baby Boomers reduces the likelihood of a consumer purchasing a product related to their mental health and wellbeing. Generation Consumer Insights Report 2022 Latana.com 6 Audience Insight For this question, Millennials take the lead again. They are the generation that is most likely to invest in a product or service that focuses on mental health, with 72% responding with “likely” or “very likely”. On the other end of the scale, only 34% of Baby Boomers responded with “likely” or “very likely” to the same question. It’s an obvious takeaway then, that Millennials and Gen Z are a responsive audience for mental health products and should be targeted by brands. However, since mental health is a universal issue that affects people regardless of their attitudes towards it, the following results indicate that older age cohorts may be underserved by mental health-related products and services. A brand that can find the right way to speak to them and break through old taboos could potentially serve this demographic well. 72% Millennials 34% Baby Boomers Consumer Insights Report 2022 Latana.com 12 6 13 Overall females were more likely to focus more on their mental health and wellbeing in 2022, with an 8% lead over males. This lead was maintained when considering if they expected to purchase mental health-focused products in 2022, as well. While 63% of females were “likely” or “very likely” to do so, only 57% of males responded in the same way. The slight gap here could be explained as a result of the differing attitudes males and females have toward openly discussing mental health. Females & Males Females Females Males Males Do you expect to focus more or less on your mental health and wellbeing in 2022 than in previous years? How likely are you to purchase a product in 2022 that is focused on your mental health and wellbeing? More so than in previous years Very likely About the same as previous years Less so than in previous years Likely Don’t know Neither likely nor unlikely Unlikely Very unlikely Don’t know 3% 4% 28% 68% 23% 5% 5% 4% 35% 28% More so than in previous years About the same as previous years Less so than in previous years Don’t know 3% 4% 39% 56% Very likely Likely Neither likely nor unlikely Unlikely Very unlikely Don’t know 25% 7% 4% 5% 34% 23% Consumer Insights Report 2022 Latana.com 14 6 Audience Insight These results suggest females will be more receptive to brands that offer services focused on mental health and wellbeing. Though males have traditionally shunned such products and services, many mainstream sports brands have kicked-off new campaigns aimed at removing these taboos. So, in time, this gap may close — especially as relevant brands broaden their targeting to include males. 28% Females 23% Male Consumer Insights Report 2022 Latana.com 15 6 15 A consumer’s level of education can be a strong predictor of the likelihood of them focusing on and investing in their mental health in 2022. In fact, we found that highly-educated consumers were more likely to focus on mental health this year, with an 11% gap between them and consumers with low education levels. While 65% of highly-educated consumers were “very likely” or “likely” to purchase mental health-related products this year, only 51% of consumers with low education levels answered in the same way. Education Highly Educated Consumers Highly Educated Consumers Consumers With Low Education Consumers With Low Education Do you expect to focus more or less on your mental health and wellbeing in 2022 than in previous years? How likely are you to purchase a product in 2022 that is focused on your mental health and wellbeing? More so than in previous years Very likely About the same as previous years Less so than in previous years Likely Don’t know Neither likely nor unlikely Unlikely Very unlikely Don’t know 2% 2% 33% 64% 21% 6% 4% 4% 39% 26% More so than in previous years About the same as previous years Less so than in previous years Don’t know 5% 6% 35% 53% Very likely Likely Neither likely nor unlikely Unlikely Very unlikely Don’t know 18% 5% 4% 3% 39% 31% Consumer Insights Report 2022 Latana.com 16 B. Environmental Impact In parallel to the COVID-19 pandemic, the ongoing discussion surrounding the climate and environmental sustainability has also gathered momentum in the last few years. Indeed, some scientists have claimed that environmental issues such as deforestation may have actually been a key contributing factor to the pandemic and could cause future outbreaks. Paired with this, the positive environmental effect that locking down had in various parts of the world has boosted the importance of environmental issues for many consumers. To understand exactly what form consumers’ attitudes to the environment have taken we asked the following two questions: Across the general population, the majority of people believed that tracking their environmental impact (61%) and improving it (70%) were both either “very important” or “important”, though a smaller share found tracking to be important. This bodes well for brands that have put sustainability at the forefront of their messaging and identity, including those such as Oatly, who are vocally advocating for climate footprint data to be included on packaging. Consumer Insights Report 2022 Latana.com How important is it to you to track your environmental impact in 2022? How important is it to you to improve your environmental impact in 2022? Very important Very important Important Important Neither important nor unimportant Neither important nor unimportant Not very important Not very important Not at all important Not at all important Don’t know Don’t know 21% 18% 9% 5% 5% 4% 4% 3% 38% 39% 23% 31% Our data for the general population was as follows: The results for the general population was: 15 6 17 Looking specifically at how important consumers believe improving their environmental impact is and dividing the responses given by those from the USA and UK presents some interesting insights. In the USA, concern for the environment breaks along traditional political faultlines, with more Democrats wanting politicians to prioritize environmental protection while Republicans’ levels of concern stay relatively static. This may explain why fewer respondents from the USA in our data thought it was “very important” or “important” to improve their impact on the environment. In the UK, where this partisan gap does not exist to such a large degree, 5% more respondents found it to be “very important” or “important”. Despite their lower overall score, respondents from the USA were more likely to think it was “very important” than their UK counterparts. This may be a result of the extreme weather events that have hit many communities in the USA or could even be explained by the aforementioned partisan gap — influencing consumers to form stronger opinions as part of their political identity. For brands, the data reveals that both locations are good markets to create strong environmental brands, though it’s possible the topic could be more divisive and, therefore, riskier in the USA. Geography How important is it to you to improve your environmental impact in 2022? UK US Consumer Insights Report 2022 Latana.com Important Important Very important Very important 44% 33% 28% 34% 6 18 While past research has suggested that men lag behind women when it comes to environmental concern and action, our results don’t directly reflect this eco-gender gap. In fact, our results reveal that males are more likely to think improving their environmental impact is either “very important” or “important” (72%) than females (68%). One explanation for this result could be that males have more room to improve their behavior in regard to the environment, while females may already feel they are doing enough. The eco-gender gap was identified in 2018, meaning discourse focused on environmentalism has had 5 years now to find a more suitable tone to convince males to take action. Females & Males How important is it to you to improve your environmental impact in 2022? How important is it to you to improve your environmental impact in 2022? Females Males Very important Very important Important Important Neither important nor unimportant Neither important nor unimportant Not very important Not very important Not at all important Not at all important Don’t know Don’t know 19% 16% 5% 4% 3% 5% 4% 3% 38% 40% 30% 32% Consumer Insights Report 2022 Latana.com 6 19 Gen X Baby Boomers Gen Z Millennials Generation How important is it to you to improve your environmental impact in 2022? Very important Very important Very important Important Very important Neither important nor unimportant Important Important Not very important Important Not at all important Neither important nor unimportant Neither important nor unimportant Don’t know Neither important nor unimportant Not very important Not very important Not very important Not at all important Not at all important Not at all important Don’t know Don’t know Don’t know 17% 5% 2% 5% 34% 37% 18% 21% 16% 5% 6% 3% 5% 8% 4% 4% 3% 2% 40% 42% 39% 27% 18% 36% Splitting our survey respondents’ by generation and zooming in on their responses to this question reveals that views about individual environmental impact are heavily influenced by age — with younger consumers more likely to think that improving their impact is “very important” or “important” compared to older generations. Consumer Insights Report 2022 Latana.com 20 6 Audience Insight Baby Boomers live up to their stereotypical reputation with the lowest share thinking that personally improving their impact in 2022 is “very important” or “important”. It’s worth noting here that this doesn’t necessarily mean that Baby Boomers are antagonistic or dismissive of environmental causes. Studies have shown that concern for the environment is spread evenly across generations, while other studies have shown that many people already believe they are doing enough or feel they need more support from the government in order to do more. Despite this, for brands that promote themselves by shouting about their environmental credentials such as Oatly or BrewDog, these results are promising. In every generational cohort, a comfortable majority of people believed that individual action to improve environmental impact was “very important” or “important”. 18% Baby Boomers Consumer Insights Report 2022 Latana.com