WHAT MATTERS TO

TODAY’S
CONSUMER

2024 consumer behavior tracker for theConsumer Products and Retail industries#GetTheFutureYouWant

2
What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

Capgemini Research Institute 2024

3

Executive
Summary

What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

In the 2023 edition of our annual research series, Whatmatters to today’s consumer, we found that consumers were
worried about the cost-of-living crisis, with this concern
naturally feeding into their expectations and purchasing
behaviors. Many were worried, in particular, about the cost of
feeding their families and buying essential items.
This report is the third in our annual research series thatexamines evolving consumer behaviors. This year, we findthat many of the behaviors we noted in our 2023 report havepersisted, with consumers continuing to express concern
about their personal financial situations amid rising inflation.
However, this concern has dropped significantly in the past
twelve months as just 43% of consumers worry their personal
finances will worsen over the next 6–9 months, comparedwith 80% who were concerned that they would worsen in theequivalent period last year.
New to this year’s research, we also explore the rise ofgenerative AI and its impact on consumers’ purchasing
behaviors. What we found is that around one in fiveconsumers has used generative AI to shop and just over halfof users have already acted on product recommendations

made by generative AI tools, such as ChatGPT, with 55% of
Gen Z having bought products recommended by generative
AI tools.
Social commerce is a retail channel that is growing in
popularity, with 46% of Gen Z consumers having purchaseda product via social media platforms. We also explore how
consumers have become more sustainability-conscious,
demanding greater transparency on product origin andbusiness practices and processes. Around 60% of consumers
want brands to play an active role in consumer education andawareness in this regard.
We highlight three opportunities for brands and retailers
to capitalize on these evolving trends. First, companies canidentify and adopt innovative technological solutions to
reduce costs, with savings passed on to consumers. New
technologies such as generative AI are critical to businesses’
becoming more customer centric. Second, brands andretailers can unlock channel growth by prioritizing social
commerce, as this is a key area for channel growth, forexample using influencers to amplify product promotions.
Finally, organizations can educate consumers on thesustainability impact of their shopping and, in particular, seek
to reduce food waste.

Capgemini Research Institute 2024

4

Introduction

What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

In this year’s report, we explore the impact of the cost-ofliving crisis on consumers and examine their strategies forcoping with it with the aid of technology. We also examine
the influence of generative AI on shopping behaviors
and habits and look at the areas in which consumers use
generative AI in their shopping experiences. The impact ofsocial commerce – especially on Gen Z – is also a focus of thisreport. Finally, we examine the way in which consumers are
becoming more conscious of the impact of their purchases
and are increasingly demanding a positive attitude towards
promoting sustainability on the part of the brands they use.

To address these themes, we conducted a global survey ofmore than 11,500 consumers over the age of 18 across 11
countries: Australia, Canada, France, Germany, Italy, Japan,
the Netherlands, Spain, Sweden, the UK, and the US. To
qualify for inclusion in the survey, consumers must havepurchased groceries and/or health and beauty products inthe preceding six months. For more details on the survey
sample, please refer to the Appendix.
We close this report by suggesting the key actions for brands
and retailers to consider in order to manage and adapt to theongoing shifts in consumer behavior.

Capgemini Research Institute 2024

5

Introduction

What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

This report explores five broad trends:

1

Consumer worries aroundcost of living

2

Use of generative AI in
shopping

3

The rise of social
commerce especiallyamong Gen Z

4

Consumer awarenessabout the environmental
and societal impact of
their purchases

5

What makes for a positive
shopping experience inthe post-digital age

Capgemini Research Institute 2024

6
What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

01

CONSUMER WORRIES AROUNDCOST OF LIVING ARE STILL HIGH
BUT HAVE EASED SLIGHTLY

Capgemini Research Institute 2024

7
What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

The cost-of-living crisis
continues to seriously
impact consumer
sentiments but there issome relief
Overall, 52% of consumers are extremely concerned about
their personal finances compared with 61% last year. In theUS, the share has dropped to 53% from 65%. Consumer
spending, which accounts for more than two-thirds of US
economic activity, accelerated 0.7% in September 2023.1
In France (55%) and Spain (59%), this share is higher. In the EU,
consumer food prices were 17% higher, year on year, in April
2023. The prices of basic food items in the EU have shot up:e.g., sugar has risen by 55%, fresh whole milk by 25%, eggs by
23%, and potatoes by 20%.2 Alexandre Bompard, Chairman
and CEO of French supermarket chain Carrefour, comments:“We are seeing a non-spending tsunami in France. Whenpeople go without essential goods, one must act.” 3

Capgemini Research Institute 2024

8What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

FIGURE 1.
Consumers are less concerned about their personal financial situation this year

SHARE OF CONSUMERS WHO AGREE WITH THE STATEMENT: "I AM EXTREMELY CONCERNED ABOUT MYPERSONAL FINANCIAL SITUATION."
61%
52%

60%

56%

66%
58%

66%

64%
54%

Gen Z
(Age 18–24)

Millenials(Age 25–40)

Gen X(Age 41–56)

November 2022

61%

55%
49%
42%

Overall63%

Boomers(Age 57+)

55%
38%

Of consumers in the lower income range (less than $20,000),
66% are more concerned about their personal financial
situations, which is the highest proportion among all income
brackets. This concern about personal finances is more
pronounced among Millennials (58%), Gen Z (56%), and Gen X(54%) than among Boomer consumers (42%) (see Figure 1).
Overall, 43% of consumers fear their personal finances will
worsen in the next 6–9 months, far below the 80% last year.
In the US, 38% of consumers agree with this compared to
55% in the previous year. Brian Cornell, CEO of US retailer
Target, sums it up aptly: “As we look at the consumer
landscape today, we recognize the consumer is stillchallenged by the levels of inflation that they’re seeing infood and beverage and household essentials.” 4

Low income Medium income High income(Less than($35,000 –(More than
$35000)$100,000)$100,000)

November 2023

Source: Capgemini Research Institute, Consumer demand survey, October–November 2023; N = 11,681 consumers: 1,048 Gen Z
consumers; 3,358 Millennial consumers; 3,586 Gen X consumers; 3,689 Boomer consumers; Capgemini Research Institute, Whatmatters to today’s consumer, January 2023; N = 11,300 consumers: 992 Gen Z consumers; 3,264 Millennial consumers; 3,332 Gen X
consumers; 3,712 Boomer consumers.

Capgemini Research Institute 2024

9What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

Consumers continue to bestringent about theirpurchases

FIGURE 2.
Consumers exhibit stringent behaviors in response to the cost-of-living crisis

SHARE OF CONSUMERS WHO AGREE WITH THE FOLLOWING STATEMENTS
70%

I am making fewer impulse purchases

63% of consumers in our survey are buying private-label
or low-cost brands over named brands this year, compared
to 65% the previous year. As many as 70% of consumers
say they are making fewer impulse purchases and 66% are
cutting back on non-essential items, compared to 73% and69%, respectively, in the previous year (see Figure 2). Jeff
Gennette, CEO of US retail group Macy’s, notes that, overthe past several quarters, Macy’s customers have pulled backaggressively on discretionary purchases and have generally
become more deliberate in their purchasing behaviors.
“As we plan the remainder of the year and think about
2024, we remain cautious of the pressures impacting ourcustomers, especially at Macy’s, where around 50% ofidentified consumers have an average household income of$75,000 or under.” 5

I am cutting back on non-essential items

66%

I am delaying purchases of luxury items

66%

I go to the store and spend only what I have64%

I am buying cheaper private-label or low-cost brands over name brands
I am buying products from hypermarkets and discount stores, rather
than buying them from specialty grocery stores and convenience stores
I am spending more time shopping at diﬀerent physical stores to ﬁnd
deals and discounts
I am spending more time searching online to ﬁnd deals and discounts

63%
62%
56%
54%
44%

I am looking to buy smaller quantities each time
I have used “buy now, pay later” payment methods

32%

Source: Capgemini Research Institute, Consumer demand survey, October–November 2023, N = 11,681 consumers.

Capgemini Research Institute 2024

10What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

Consumers remain
choiceful, particularly indiscretionary categories

FIGURE 3.
The share of consumers planning to cut discretionary spending has fallen in 2023

SHARE OF CONSUMERS WHO PLAN TO REDUCE PURCHASES, OVERALL AND BY PRODUCT CATEGORY
57%

Overall, 40% of consumers plan to cut spending acrossmultiple categories, slightly lower than the 44% last year (seeFigure 3). Consumers plan to cut spending on groceries (25%),
over-the-counter (OTC) healthcare products (33%), furniture(53%), and luxury items (54%). CFO of US retailer Walmart
John David Rainey comments: “At headline level, consumer
spending has proven resilient but, below the surface, we
continue to see signs that consumers remain choiceful,particularly in discretionary categories.” 644%Overall spending*

54%

47%

40%

33%

58%

53%

37%
32%

29%

25%

28%

33%

Groceries and foodsupplies

Over-the-counter
healthcare products

November 2020

November 2022

35%

Furniture and furnishings

Luxury products

November 2023

Source: Capgemini Research Institute, Consumer demand survey, October–November 2023, N = 11,681 consumers; Capgemini
Research Institute, What matters to today’s consumer, January 2023; Capgemini Research Institute, What matters to today’s consumer,
January 2022; Capgemini Research Institute, The great consumer reset: COVID-19 and the consumer products and retail consumer,
November 2020.
*Overall spending includes groceries and food supplies; household supplies; personal care products; over-the-counter healthcare
products; furniture and furnishings; consumer electronics/white goods; apparel and accessories; at-home entertainment/
media; luxury products; takeaway food from restaurants; casual or fine dining; alcoholic beverages; tobacco; leisure travel;
work-related travel.

Capgemini Research Institute 2024

11
What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

Consumers expect
retailers to provide“shrinkflation” alerts
Consumer expectations of retailers have increased; 65%
expect retailers to alert consumers when brands reduce theweight of a product without reducing the price (aphenomenon known as “shrinkflation”) Carrefour, forexample, now labels products to warn of this.7 64% expect
retailers to alert consumers when brands start using lowerquality ingredients/raw materials without reducing the price(so-called “skimpflation”).
In line with the previous year’s expectations, 70% ofconsumers want more discounts on essential items and 67%
want retailers to accept lower prices. 73% of consumers will
be more loyal to companies that help them through thisdifficult time, and 71% of consumers plan to purchase moreproducts/services from these companies.

%

64

expect retailers to alert consumers whenbrands start using lower quality ingredients/
raw materials without reducing the price%65

expect retailers to alert consumers whenbrands reduce the weight of a product without
reducing the priceCapgemini Research Institute 2024

12What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

02

ONE IN FIVE CONSUMERS HASALREADY USED GENERATIVE AI
IN SHOPPING

Capgemini Research Institute 2024

13
What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

High consumer awareness of generative AI continues in 2023,
with 86% of consumers saying they are aware of tools such as
ChatGPT and DALL-E. We found that awareness of generative
AI as a shopping tool is also high. 72% of consumers overall
are aware of the use of generative AI in shopping experiencesand 20% have used it already. 28% of consumers mentioned
they are not aware of generative AI for shopping(see Figure 4).

Nearly 55% of Gen Z consumers have bought
products recommended by generative AI tools
Among consumers who are aware of the use of generative
AI in shopping experiences, and have already used it,
66% are open to purchasing new products or services
recommended by generative AI compared to 64% in April
2023. The shopping experience of 55% of users has been
notably enhanced by generative AI tools. Gen Z and Millennial
consumers lead the pack, with 56% and 61%, respectively,
believing that generative AI tools improve their user
experience, as compared with 52% for Gen X and 43% for
Boomer consumers.

FIGURE 4.
One-fifth of consumers have used generative AI in shopping

SHARE OF CONSUMERS WHO AGREE WITH THE STATEMENTS BELOW

20%

I am aware of the use of generative AI in shopping
experiences, and I have used it already28%
I am aware of the use of generative AI in shopping
experiences, and I plan to use it in the future
I am aware of the use of generative AI in shopping
experiences, but do not plan to use it myself
19%

33%

I am neither aware of nor have explored generative AI
tools for shopping

Source: Capgemini Research Institute, Consumer demand survey, October–November 2023, N = 11,681 consumers

Capgemini Research Institute 2024

14
What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

Generative AI is transforming online purchase behaviors.
Over half (52%) of users have replaced traditional
search engines with generative AI tools for productrecommendations (see Figure 5). Among these users,
54% are men and 46% are women. Gen Z and Millennials’
preference for generative AI over traditional search engines
for product/service recommendations are now at 54% and56%, respectively.
A significant 52% of users have already acted on productrecommendations made by generative AI tools, with 55%
of Gen Z having bought products recommended by them,compared with 57% of Millennials. Among these users, 55%
are men and 45% are women.
German online retailer Zalando has launched a new fashion
assistant, powered by ChatGPT, to enhance the consumer
experience and improve consumer perceptions of thewebsite. For instance, when a consumer enquires aboutsuitable attire for a spring wedding in Spain, Zalando's
fashion assistant can discern the formal nature of the event,anticipate weather conditions, and offer appropriate clothing

FIGURE 5.
Generative AI is not just used by Gen Z

GENERATIVE AI PREFERENCES BY AGE AMONG CONSUMERS, WHO ARE AWARE AND HAVE USED IT
FOR SHOPPING
52%
55%
57%
50%

I have already bought products recommended by generative
AI tools
36%

52%
54%
56%
51%

I have replaced traditional search engines with generative AI tools
for product/service recommendations
37%

GlobalGen Z (Age 18–24)

Millenials (Age 25–40)

Gen X (Age 41–56)

Boomers (Age 57+)

Source: Capgemini Research Institute, Consumer demand survey, October–November 2023, N = 2,299 consumers who are aware of
the use of generative AI in shopping experiences and have used it already: 345 Gen Z consumers, 986 Millennial consumers, 635 Gen
X consumers, 333 Boomer consumers.

Capgemini Research Institute 2024

15
What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

recommendations. The ultimate objective is to train thisfeature on consumer preferences, including favored brands
and availability of products in their sizes, to deliver a more
personalized product selection.8
Using a new chatbot based on OpenAI's ChatGPT-4
technology, Carrefour’s online shoppers in France will beable to choose products based on their budget and foodconstraints or seek new menu ideas. The chatbot can alsosuggest anti-waste solutions for reusing ingredients andcompose baskets based on specific recipes.9
Using a new Chatbot based on generative AI, Walmart’s
online shoppers can compare and choose products, andreceive recommendations based on their preferences
and needs. It also lets customers try products virtually
before buying. Walmart is testing this feature as part of its
generative AI-powered search and shopping assistant.10

Capgemini Research Institute 2024

16
What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

Consumers have a positive
outlook on generative AI
tools• A substantial 66% of users welcome productrecommendations from generative AI.

FIGURE 6.
Consumer preference for generative AI in different stages of the shopping experience

GENERATIVE AI PREFERENCES BY AGE AMONG CONSUMERS, WHO ARE AWARE AND HAVE USED IT
FOR SHOPPING
I would like a chatbot similar to ChatGPT from brands/companies
to ask questions and receive responses quickly59%• 60% of users trust services and products
suggested by generative AI.

I want generative AI to recognize my history with / loyalty to certain
brands and product types in order to suggest similar products

58%

More importantly, a substantial 59% of users seek
personalized recommendations from generative AI that alignwith their personality (see Figure 6).

I am positively anticipating generative AI's ability to oﬀer customized
fashion and home-décor recommendations

57%

I want generative AI to align with my current preferences57%• 55% of users seek advice in areas such as diet plans,
make-up suggestions, and fashion combinations from agenerative AI tool.
• 58% of users say generative AI should be able to identify
their brand and product loyalty, thereby recommending
similar products.

I would seek advice for my future shopping experiences from agenerative AI tool55%

GlobalSource: Capgemini Research Institute, Consumer demand survey, October–November 2023, N = 2,299 consumers who are aware of
the use of generative AI in shopping experiences and have used it already.

Capgemini Research Institute 2024

17
What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

While consumers may not always be aware that the tools
they use include generative AI, 42% of users have used it
in a chatbot to resolve queries and many other tasks (seeFigure 7).

FIGURE 7.
Consumer preference for generative AI tools for different tasks

SHARE OF CONSUMERS USING GENERATIVE AI TOOLS FOR DIFFERENT TASKS, WHO ARE AWARE AND
HAVE USED IT ALREADY%

60

of users trust services and products
suggested by generative AI

42%

Chatbot resolved post purchase queries
Tailored loyalty programs

37%

Automated summary of product reviews

36%

User-generated social media posts

36%

Chatbot answering queries in real time

36%

Targeted advertising

34%

Customized follow-up care and usage tips

33%

Chatbot recommendations based on personal shopping history

32%
31%

Virtual try ons/make-up at home
Advertising collateral

27%

Source: Capgemini Research Institute, Consumer demand survey, October–November 2023, N = 2,299 consumers who are aware of
the use of generative AI in shopping experiences and have used it already.

Capgemini Research Institute 2024

18
What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

FIGURE 8.
Impact of generative AI on online shopping, for consumers who are aware and have used it already

AWARENESS

PURCHASE

LOYALTY/ADVOCACY

Generative AI creates advertisingcollateral

Chatbot answers queries inreal timeTargeted advertising

Tailored loyalty program

User-generated social media posts

Used by: Coca-Cola
Animated several classical art pieces foran advertisement1

Used by: Meraci
Employed an AI chatbot taking
conversational input and follow-up
questions about products4

Used by: Tesco
It uses data from various channels
to create personalized promotions
based on shopping behaviors5

Used by: GE Appliances
Flavorly AI generates dishes
and combinations forcustomers based on what
they’ve bought8

Used by: Google
Google Product Studio powered bygenerative AI empowers businesses of any
size to create visual content tailored totheir dynamic marketing requirements9

27%

29%

36%

42%

34%

Sources:
1. Forbes, “The amazing ways Coca-Cola uses generative AI in Art and advertising,” September 8, 2023.
2. Ecommerce News, “generative AI in Ecommerce: A look beyond texts,” July 3, 2023.
3. PYMNTS, “Luxury retailers try on AI to reduce returns,” June 16, 2023.
4. Modern Retail, “Retailers are using ChatGPT to help people pick what to buy,” April 27, 2023.
5. Analytics India, “How this company is redefining retail experience with generative AI,” May 5, 2023

40%

37%

45%

36%

43%

(Continue on the next page...)Capgemini Research Institute 2024

19
What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

CONSIDERATION

POST-PURCHASECUSTOMER SUPPORT

Chatbot recommendations basedon consumer queries

Virtual try-ons/make-up
at homeAutomated summary of
product reviews

Customized follow-up careand usage tips

Chatbot resolves post-purchasequeries

Used by: Zalando
Fashion assistant can recommend
products based on contextual
clues2

Used by: Valentino
Autumn 2023 collection can betried on virtually3

Used by: Amazon
Oﬀers concise summaries ofreviews to improve CX6Used by: Carrefour
Perfado AI-generated messaging
to hyper-personalize the language
for customers7

Used by: Macy’s
Employing an AI-powered shopping
assistant to automatically answer queries
about products and receive responses10

32%

40%

31%

39%

36%

Share of people using generative AI tools for these tasks,
who are aware and have used it already

42%

33%

40%

42%

49%

The satisfaction level of respondents with respect to generative AI performing thesetasks, who are aware and have used it already6. Amazon, “How Amazon continues to improve the customer reviews experience with generative AI,” August 14, 2023.
7. Persado, “How motivation AI-Generated language helps Carrefour engage customers,” December 15, 2022.
8. Consumer Goods Technology, “GE Appliances and Google Cloud collaborate to create customized recipes using generative AI,” August 29, 2023.
9. PYMNTS, “Google turns product images into merchant sales using generative AI,” May 23, 2023.
10. CXOToday, “How generative AI is reshaping consumer insights and retail strategy,” November 1, 2023.
Source: Capgemini Research Institute, Consumer demand survey, October–November 2023, N = 2,299 consumers who are aware of the use of generative AI in shopping experiences and have used it already.
Capgemini Research Institute 2024

20
What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

Key consumer challenges
about generative AI

FIGURE 9.

Extensive coverage of generative AI in the media means
consumers are now more alert to the possibility of tools
being used for unethical ends.

KEY GENERATIVE AI CONSUMER CONCERNS, WHO ARE AWARE AND HAVE USED IT ALREADY• 62% of consumers harbor concerns about generative
AI producing false/misleading testimonials or reviews,
compared with 30% in April 2023 (see Figure 9).
• The potential of generative AI to copy or clone competitors'
product designs or formulas is a concern for 61% ofconsumers, compared with 27% in April 2023.

Using generative AI to provide false/misleading testimonials or reviews is one of the biggest worries for consumers

Bias in the generative AI models leading to unrepresentative results
Non-recognition/non-payment for artists/contributors whose creations
are used for training generative AI
Use of generative AI algorithms to copy/clone a competitor’s productdesign/formula
Impersonation of individuals using generative AI to provide
false/misleading testimonials or reviews

30%
61%
33%
58%
27%
30%
62%

Possibility of using deep fakes to create content without permission of theinvolved individuals

25%

Lack of clarity on the sources used for training the generative
AI algorithms

25%

April 2023

61%

59%
59%

October–November 2023

Source: Capgemini Research Institute, generative AI consumer survey, April 2023; N = 3,974 consumers who are aware of the generative AI
tools and use them frequently; N = 1,247 (chatbots), N = 910 (gaming), N = 320 (search), N = 435 (text), N = 244 (generating synthetic data),
N = 490 (video), N = 152 (images), N = 176 (audio); Capgemini Research Institute, Consumer demand survey, October–November 2023, N =2,299 consumers who are aware of the use of generative AI in shopping experiences and have used it already.

Capgemini Research Institute 2024

21
What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

Consumers also want generative AI tools to be created anddistributed responsibly:• A significant majority (70%) of users appreciate priordisclosure if their interaction will involve generative AI. This
response has been consistent for some years: in 2018, 66%of consumers stated the same.11• When interacting with organizations or brands via
generative AI, 70% of users prefer the option to escalate toa human representative in case they are not satisfied whileinteracting via generative AI.

%

70

of users prefer the option to escalate toa human representative in case they are notsatisfied while interacting via generative AI

Capgemini Research Institute 2024

22
What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

03

SOCIAL COMMERCE CONTINUESTO GROW DRIVEN LARGELY
BY GEN Z

Capgemini Research Institute 2024

23
What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

Social commerce is picking
up the pace
The global social commerce market was valued at $561 billion
in 2021 and is projected to rise to $6,341 billion by 2030,
showing a CAGR of 31.1% in 2022–30.12
BookTok, a reading suggestion platform from Chinese techcompany TikTok, has become highly influential, with over 180
billion viewers at time of writing. BookTok helped in the saleof an estimated 20 million books in 2021, representing over
2.4% of total book sales for the year and nearly half of thebook purchases from social media in 2021.13

FIGURE 10.
46% of Gen Z consumers have already bought products on a social media platform

SHARE OF CONSUMERS WHO HAVE BOUGHT A NEW PRODUCT/BRAND THROUGH SOCIAL MEDIA, BY
AGE GROUP
46%
35%
24%

21%
10%

Overall
Overall

Gen Z (Age 18–24)
Gen Z (Age 18–24)

Millenials (Age 25–40)
Millenials (Age 25–40)

Gen X (Age 41–56)
Gen X (Age 41–56)

Boomers (Age 57+)
Boomers (Age 57+)

Source: Capgemini Research Institute, Consumer demand survey, October–November 2023, N = 11,681 consumers: 1,048 Gen Z
consumers, 3,358 Millennial consumers, 3,586 Gen X consumers, 3,689 Boomer consumers.

Capgemini Research Institute 2024

24
What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

Consumers have already bought products
via social media platforms
Social commerce refers to shopping experiences that occur
directly on a social media platform, including clicking a link on
a social network that leads to a retailer’s product page with
an immediate purchase option.14
Around one-quarter of consumers have bought a productvia a social media platform: 41% of consumers from Spain;
30% from the US; and 28% from Sweden. More purchases
are made by households with children (36%) than households
without children (17%).
As many as 46% of Gen Z consumers surveyed have made apurchase on a social media platform in the past year. Almost
48% of US Gen Z (aged 18‒29) say they will do at least someof their year-end shopping on social media platforms such as
TikTok or Instagram.15
Overall, Instagram (62%) and YouTube (62%) are the preferredpurchasing platforms across generations of consumers,
followed by Facebook (55%) and TikTok (44%). Gen Z
consumers show a strong preference for Instagram (70%),
TikTok (63%), and YouTube (58%) for their purchases, whereas
Millennials primarily prefer to use Instagram (67%) andYouTube (63%)(see Figure 11). The most strongly preferred
platforms for Gen X and Boomer consumers are YouTube,
Instagram, and Facebook.

FIGURE 11.
Consumers prefer Instagram and YouTube as purchasing platforms

CONSUMERS' TOP THREE SOCIAL MEDIA PURCHASING PLATFORMS
Overall

55%

44%

Gen Z (Age 18–24)

49%

Gen X (Age 41–56)

35%

Boomers (Age 57+)

YouTubeFacebook

63%
67%
63%

52%

52%

23%
Instagram

70%

58%

36%

Millennials (Age 25–40)

62%
62%

59%

64%
65%
64%
66%

TikTokSource: Capgemini Research Institute, Consumer demand survey, October–November 2023, N = 2,774 consumers who have purchasedon social media in the past year, 481 Gen Z consumers; 1,176 Millennial consumers; 766 Gen X consumers; 351 Boomer consumers.

Capgemini Research Institute 2024

25
What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

In the past year alone, consumers have made products andservices purchases through social media across categories.
Among consumers who have purchased from social media,
apparel (62%), health and wellness products (61%), andpersonal products (58%) are the categories in which they
have most frequently purchased more than three times in thepast year. It is interesting to note that 58% of consumers who
have purchased on social media have purchased groceries
through it in the past year (see Figure 12).
Of Gen Z consumers, 51% have occasionally purchased
apparel and accessories via social media, as compared to 23%
of Millennials.
Consumers in the United States have frequently purchased(8 times or more in the past year) groceries and food supplies(32%), personal care products (31%), and apparel andaccessories (26%) via social media, making more purchases
through this channel than consumers in other geographies.

FIGURE 12.
Apparel and accessories is the most popular purchase category via social media

CONSUMER PURCHASE PREFERENCES VIA SOCIAL MEDIA

Apparel and accessories

44%

18%

Health and wellness products

42%

19%

Personal care products

38%

20%

Groceries and food supplies

36%

22%

Occasionally purchased (3 to 7 times in the past year)

Frequently purchased (8 times or more in the past year)

Source: Capgemini Research Institute, Consumer demand survey, October–November 2023, N = 2,774 consumers who havepurchased on social media in the past year.

Capgemini Research Institute 2024

26
What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

Why consumers prefer to buy onsocial media platforms

How are social media platforms
using social commerce?

Around 46% of Gen Z consumers and 44% of Millennials are
discovering products via social media. Over half (56%) of
consumers who have bought on social media say they haveaccessed reliable reviews through their social media feeds.

Social media platforms are integrating shopping features
to cater to the impulse purchase behavior of consumers,
while brands are setting up virtual shops on such platforms.
Many social media platforms are running beta testing of
their shopping features and slowly expanding to reach global
markets.

Consumers feel that social media helps accelerate purchasedecisions. Over half (53%) of consumers who have purchased
via social media say they have been influenced by feeds,
stories, reels, lives shows, and influencers in making
purchases.
French personal care organization L’Oréal has been investingheavily in “live commerce,” a type of social commerce, in theIndonesian market. L’Oréal has 14 different studios that livestream the brand's products.

Livestreaming sales in the U.S. has been estimated to reach$50 billion in 2023 and are expected to account for more than
5% of total e-commerce sales in the U.S. by 2026.16 In the
US, TikTok, Amazon, Walmart, Shopify, and YouTube are all
getting in on the game. “People are excited by what you’reseeing from China, where you see really high conversion
rates on some of these experiences, much higher than aregular website would have. You’re seeing potentially up to
40% in some cases,” comments Daniel Debow, Vice-Presidentof Product at Shopify, which launched live-shopping
capabilities with YouTube in July 2022.17

Capgemini Research Institute 2024

27
What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

FIGURE 13.
Integrating social to retail and retail to social

Amazon Live Shopping• Amazon Prime live day streams had more than 100 million views in the US andIndia, with simultaneous viewing peaking at 57,000• For the Great Indian Festival, Amazon Live, introduced in India in 2022, will
present over 1,000 streams, featuring more than 300 inﬂuencers across
categories including tech, gaming, fashion, lifestyle, home, sports, and beauty toassist customers in making informed purchases

Pinterest Business• Pinterest has signed a multi-year agreement with Amazon to enhance its
shoppable content, making Amazon Pinterest's ﬁrst third-party advertisingpartner

YouTube Shops• YouTube has partnered with Shopify to enable onsite checkout for its sellers• In June 2023, YouTube launched its ﬁrst shopping channel, in South Korea

Source:Amazon Live Shopping
1. Estore factory, “Prime day 2023 breaks all the records, makes history,” August 1, 2023.
2. Economic Times, “Flipkart big billion days vs Amazon Great Indian Festival: Sale discounts, card deals,
and other details,” October 5, 2023.
Twitter (Now X) Shop
3. Retail Dive, “Twitter tests Shops feature,” March 10, 2022.
4. TikTok, “Guess the shop,” accessed October 20, 2022.
Facebook Shop
5. PYMNTS, “Facebook shops top 1 million stores, 250 million users,” March 19, 2021.
6. Sprout Social, “6 masterful examples of brands selling on Facebook Shops,” April 6, 2022.

Twitter (Now X) Shop
• In November 2022 Twitter collaborated with Walmart to broadcast the ﬁrst shoppable
livestream• Verizon (1.5 million followers) is involved in the testing phase, showcasing 11 products
Facebook Shop
• Meta is driving in-platform shopping on Facebook shops through in-app checkouts• Around 1 million users make purchases from the shops monthly• Top brands such as Burberry, Adidas, Lacoste and John Lewis & Partners have set
up shops on Facebook
Instagram Shop
• Over 1.63 billion, or 70% of monthly active users have shopped on Instagram• Top brands such as Adidas (34.2 million followers), Sephora (21.2 million
followers) and Target (5.3 million followers) have set up shop in Instagram shop

Tik Tok Shops• In September 2023 TikTok launched shops in the US, UK, and parts of South-east Asia
• In the US, >200,000 sellers have signed up• Sephora has teamed up with TikTok to launch a joint content-creation program

Instagram Shop
7. Capital One shopping, “Instagram Shopping Statistics (2023): User & revenue growth,” March 8, 2023.
8. USA Today, “Sephora enables Instagram checkout for easy shopping without leaving the app,” June 24, 2020.
TikTok Shops
9. Tech Crunch, “TikTok Shop officially launches in the US,” September 12, 2023.
10. Retail Gazette, “Sephora teams up with TikTok to launch content creator programme,” March 14, 2023.
Pinterest Business
11. PYMNTS, “Pinterest inks deal with Amazon Ads to fuel shoppable content,” April 28, 2023.
12. Hoot suite, “The Pinterest shopping features you should know in 2023,” March 8, 2023.
YouTube Shops
13. Tech Crunch, “YouTube rolls out new shopping features, announces partnership with Shopify,” July 19, 2022.
14. Economic Times, “YouTube to launch its first official shopping channel in South Korea,” June 21, 2023.

Capgemini Research Institute 2024

28
What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

Social media influencers
are impacting consumers’
product discovery andpurchasing processes
In the six months preceding November 2022, social media
influencers were holding sway on the buying decisions ofconsumers. The current survey suggests that this trend
continues.
In November 2023 we found through our survey that 33%
of consumers had discovered a new product/brand on social
media in the preceding six months, up slightly from 32%
last November. Further, 21% had learned of a new productor brand from a social media influencer and 15% of theconsumers purchased the new product.

FIGURE 14.
Social media influencers are still holding sway

32%

Discovered a new product/brand on social media inlast six months

33%
22%

Learned of that new product/brand from a social media
inﬂuencer in the past six months

21%

16%
Purchased that new product/brand in the past six months

November 2022

15%

November 2023

Source: Capgemini Research Institute, Consumer demand survey, October–November 2023, N = 11,681 consumers; Capgemini
Research Institute, What matters to today’s consumer, January 2023.

Capgemini Research Institute 2024

29
What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

Social media and influencers carrymuch more weight with Gen Z
As per our previous survey in November 2022, 61% of Gen Z
consumers discovered a new product/brand on social media,
and 60% say the same this year. In our current survey, 45%
of Gen Z say that they learned of a product from influencers,and 32% say they have purchased the new product (seeFigure 15).

FIGURE 15.
45% of Gen Z consumers learned of a new product/brand from a social media influencer

IMPACT OF SOCIAL MEDIA ON GEN Z CONSUMERS
60%
45%

Since 2021, US beauty product organization Estée Lauderhas been focusing on TikTok influencers to capture the Gen
Z audience. As per Estée Lauder’s brand-equity data, Gen
Z’s purchase considerations have been steadily rising since
mid-2022. This suggests that Gen Z’s willingness to purchase
Estée Lauder products rose throughout the second half of2022 and into 2023.18

Influencers impact consumers’ buying preferences
We found that 51% of consumers who have purchasedon social media prefer to seek purchasing advice frominfluencers, claiming they give a clear breakdown of factors
to consider before making a purchase.
Almost half of consumers who have purchased on social
media (48%) prefer to buy products directly from an
influencer based on their live recommendation and live

32%

Discovered a new product/brandon social media in the past six months

Learned of that new product/
brand from a social media inﬂuencer
in the past six months

Purchased that new product/
brand in the past six months

Source: Capgemini Research Institute, Consumer demand survey, October–November 2023, N = 1,048 Gen Z consumers.

discount offers. More than half of consumers (51%) also
look for their influencers' social media presence to searchfor discounts and offers. Consumers who have purchasedon social media (48%) feel a sense of belonging to theircommunity through interacting with live events organized
by influencers.

Capgemini Research Institute 2024

30
What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

Celebrity and influencer
brands are attuned to theconsumer mindset
Celebrities and influencers with huge numbers of followers
are launching their own brands. In the US, having gained
traction through digital sales and sales partnerships withchains such as Ulta and Sephora, some celebrity brands
are now establishing their own physical locations, with
76% locating their shops in malls. US Celebrity brands are
estimated to occupy more than 300,000 sq ft of physicalretail space.19• Among celebrity brands, Kate Hudson's Fabletics has thebiggest physical presence, with 95 stores;• Drake's October's Very Own is next with 11; and• Sarah Jessica Parker's SJP Collection has 6.

Capgemini Research Institute 2024

31
What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

Théo Spilka, Global VP of Strategic Licensing and Business
Development at Swiss fragrance company Firmenich, is
optimistic about the recent influx of celebrity brands,
specifically in the beauty category. “Things have come backin a more managed way and this has coincided with a verystrong trend in beauty companies, where the celebrity will
invest in the brand themselves.” 20

FIGURE 16.
45% of Gen Z consumers have bought a product from influencers and celebrity brands

SHARE OF CONSUMERS WHO HAVE BOUGHT A PRODUCT FROM INFLUENCERS AND CELEBRITIES

Celebrity beauty brand sales increased by 33% between
2021 and 2022, with overall sales hitting $762 million in 2022
alone. Since 2019, there have been 42 celebrity beauty brandlaunches, including four new launches for the current year toJune.21,22

Consumers have already started buying
from celebrity and influencer brands
Consumers across generations have started buying fromcelebrity and influencer brands. One-fifth of consumers havebought products from such brands in the past year, with Gen
Z (45%) showing the highest interest, followed by Millennials(32%)(see Figure 16).

45%
32%
20%

17%
6%

Overall

Gen Z (Age 18–24)

Millenials (Age 25–40)

Gen X (Age 41–56)

Boomers (Age 57+)

Source: Capgemini Research Institute, Consumer demand survey, October–November 2023, N = 11,681 consumers; 1,048 Gen Z
consumers; 3,358 Millennial consumers; 3,586 Gen X consumers; 3,689 Boomer consumers.

Capgemini Research Institute 2024

32
What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

In the past year alone, many consumers have already madepurchases in various product categories from influencers andcelebrity brands more than three times. For example, 45% ofconsumers have purchased personal care products three toseven times from celebrity and influencer brands in the past
year (see Figure 17).
Top categories that have been frequently bought (more than
three times) by consumers, who have made purchase fromcelebrities last year, are personal care products (66%), appareland accessories (63%), and groceries and food supplies (60%).
Celebrities and influencers take advantage of their follower
bases to launch their brands and convert them into sales:• Kylie Cosmetics smartly tapped into founder Kylie Jenner's
300 million+ Instagram following and beauty industry
connections to preview products and generate hype.
Shoppable Instagram posts turned interest into sales.
Kylie also partnered with mega influencers (including hersisters) to co-create products and advertise launches to a
combined audience of 500 million+ followers.23

FIGURE 17.
Purchase preferences by product category for consumers who have bought from influencer and celebrity brands

CATEGORY-BASED PREFERENCE FOR CELEBRITY AND INFLUENCER BRANDS, ON THE PART
OF CONSUMERS
Personal care products

45%

Apparel and accessories

43%

Groceries and food supplies

21%
20%

34%

Household supplies

39%

Casual or ﬁne dining in restaurants

37%

26%
16%
15%

Alcoholic beverages

31%

14%

Luxury products

31%

13%

Furniture and furnishings

31%

11%

Occasionally purchased (3 to 7 times in the past year)

Frequently purchased (8 times or more in the past year)

Source: Capgemini Research Institute, Consumer demand survey, October–November 2023, N = 2,365 consumers who have boughtfrom celebrity/influencer brands.
Capgemini Research Institute 2024

33
What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

Consumers trust and relate more with
influencer and celebrity brands%

45

of Gen Z consumers have bought products
from influencer and celebrity brands in thepast year

Consumers across generations feel they can trust andrelate to celebrity- and influencer-promoted brands. 54%
feel connected with the celebrity/influencer through thetransaction and 58% say that they are encouraged to buy
products related to the celebrity/influencer’s field/expertise.
Over half (55%) say they trust the celebrity/influencers
and this trust converts to willingness to buy from them.
Moreover, 54% of consumers who bought from celebrity
and influencer brands say that they prefer such brands totraditional brands, and 55% of such consumers trust that thecelebrity/influencer brands will be of good quality.
Since April 2022, Shopify has been working to position itself
as a go-to partner for influencers and celebrity brands.
Drake Related, the brand of Canadian musician and five-time
Grammy award winner, Drake, was one of the first brands
to test Collective, Shopify’s native “shopdripping” tool. Fans
were able to use the tool to buy Drake’s merchandise as they
were leaving one of his concerts. Shopify’s collaboration with
Drake represents a big shift from its traditional partnerships
with brands and creators.24

Capgemini Research Institute 2024

34
What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

04

CONSUMERS ARE BECOMING
MORE CONSCIOUS OF THEIRPURCHASING IMPACT

Capgemini Research Institute 2024

35
What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

Consumers across the world are becoming aware of thepower of their purchasing and consumption decisions. This
new class of conscious consumers, a group that wants tosee change at global level through their public and private
actions, demonstrates their consciousness regarding
sustainability, price, food waste, and social justice, among
other factors.

The majority of
consumers still maintaina consistent demand forsustainable products
especially Gen Z
60% of consumers globally indicate that they have purchased
products from organizations they consider to be sustainable.
While this figure has fallen from 70% in 2020, Gen Z, at
71%, has seen a rise across this period, showing a strong
predilection for sustainable products (see Figure 18).
PepsiCo has initiated a practical trial involving paper-basedouter packaging as a sustainable alternative to traditional
plastic wraps for its Walkers Baked snack multipacks. These
modified multipacks are currently accessible in more than
300,000 units at 800 Tesco stores in the UK. It is designed
to encourage widespread recycling through conventional
curbside recycling programs.25

FIGURE 18.
Gen Z consumers still want sustainable products

SHARE OF CONSUMERS ACROSS AGE GROUPS WHO BOUGHT PRODUCTS FROM ORGANIZATIONS THATARE PERCEIVED AS SUSTAINABLE

71% 71%

70%
60%

Global

73%
65%

68%

68%
58%

Gen Z (Age 18–24)
March 2020

Millennials (Age 25–40)

Gen X (Age 41–56)

54%

Boomers (Age 57+)

October–November 2023

Source: Capgemini Research Institute, Sustainability in Consumer Products and Retail survey, March 2020, N = 7,520 consumers:
849 Gen Z consumers, 2,294 Millennial consumers, 2,182 Gen X consumers, 2,195 Boomer consumers; Capgemini ResearchInstitute, Consumer demand survey, October–November 2023, N = 11,681 consumers: 1,048 Gen Z consumers, 3,358 Millennial
consumers, 3,586 Gen X consumers, 3,689 Boomer consumers.

Capgemini Research Institute 2024

36
What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

FIGURE 19.
Consumers are not comfortable purchasing products that are not sustainable

CONSUMERS DISLIKE FOR PRODUCTS THAT ARE NOT SUSTAINABLE, ACROSS CATEGORIES

51%
43%
38%

TobaccoLuxuryproducts

Work-related travel

36%

Alcoholicbeverages

36%

33%

Home
Furniture
improvement
andsupplies
furnishings

33%

Take-awayfoodfromrestaurants

33%

32%

CasualConsumeror ﬁneelectronics
dining in/white goods
restaurants

32%

Leisuretravel

32%

Apparelandaccessories

31%

30%

29%

Personal
At-homeOver-thecare
entertainment counterproducts/Mediahealthcare
products

28%

28%

27%

Groceries
and food
supplies

Householdsupplies

Prescription
medication

Source: Capgemini Research Institute, Consumer demand survey, October–November 2023, N = 11,681 consumers.

Capgemini Research Institute 2024

37
What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

Sustainability is a more influential factor in purchasedecisions for non-essential and luxury items
Around one-quarter (27%) of consumers are uncomfortablebuying non-sustainable prescription medication, and 28%
are uncomfortable purchasing non-sustainable household
supplies and over-the-counter (OTC) health products, andnon-sustainably produced grocery and food supplies. For
luxury goods (43%) and non-staple items such as tobacco(51%), alcoholic beverages (36%), and work-related travel(38%), we observe an even higher percentage of consumers
who are uncomfortable if their purchases are not sustainable(see Figure 19). The cost per product or service for theearlier mentioned categories are much higher than theremaining categories. German herbal liqueur manufacturer
Jägermeister has announced a change in its outer packaging
from solid board to recycled corrugated outers, which, itsays, are particularly compatible with its highly efficient
packing machines. 26

Consumers are conscious of the impact of food waste
In 2022, 72% of consumers said they were conscious of theirlevel of food wastage. This concern persists in 2023, with 69%
voicing concern. As many as 71% recognize the contributionof food waste to environmental issues, and 73% believe that
their behavior and choices on an individual level can help
in addressing the issue. We found 67% of consumers wanteducational campaigns and awareness programs to address
the issue of food waste.

%

67

A further 61% of consumers felt brands, stores, andsupermarkets should do more to reduce waste, and 57% felt
disappointed in their efforts in 2022. More than half (58%)
of these consumers increased spending with companies that
focused on reducing waste in 2022.
According to our current survey, brands that demonstratetransparent food-waste reduction practices receive support
from 57% of consumers, and 71% of consumers consider
retailer policies and initiatives as key drivers of the reductionof food waste. German discount supermarket chain Aldi has
committed to achieving zero waste in operations by diverting
90% of its waste from landfills through recycling, donation,and organic recycling programs by 2025, and to reduce foodwaste by 50% by 2030. To accomplish this, Aldi has rolled
out non-food donation programs to nearly all its stores anddistribution centers, expanded recycling and food-recovery
initiatives, and has piloted and expanded composting
initiatives.27

of consumers want educational campaigns andawareness programs to address the issue offood waste.

Capgemini Research Institute 2024

38
What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

Price remains the mainpurchasing factor for
consumers, followed
closely by trust
While consumers are changing their habits, price remains
the primary motivator behind purchases. Forty-one% ofconsumers are increasing second-hand product consumption,and the same proportion are moving towards a freecycle
model (donating products to friends/neighbors/community
members or accepting products for free, thereby reducing
waste and promoting reuse).28 However, 48% of consumers
buy alternative, cheaper versions of name-branded
products. Further, over half (51%) report that they are buying
refurbished or imperfect products to get a better price.

Consumers across all age groups may be unwilling to meet highprice points and expect to pay less for sustainable products. In
2023, 40% of consumers have paid 5–10% more for sustainableproducts, down from 45% in 2020 (see Figure 20).
The next two major concerns both relate to the validation andverification of sustainable goods, with 52% of respondents
reporting insufficient information to verify sustainability
claims, compared with 49% in 2020,29 and 50% reporting alack of global standards for sustainability branding.
Another concern, reported by almost half the respondents,
is that they are either unaware of how to differentiate
sustainable products (43%), as compared with 38% in 2020, or
they do not trust sustainability claims (46%, compared with
44% in 2020).

Capgemini Research Institute 2024

39
What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

Consumers need more information as awarenesslevels on sustainability remains low

FIGURE 20.
Consumers are less willing to pay more for sustainable products than in 2020

Nevertheless, in many respects, current levels of awarenessof the sustainability impact of consumer purchases remain
low:

SHARE OF ALL CONSUMERS WHO HAVE PAID MORE FOR A SUSTAINABLE PRODUCT
20%

1% to <5% more

30%
45%

5% to <10% more

40%
24%

10% to <15% more

20%
7%

15% to <20% more

≥20% more• In 2020, 78% were unaware of the water footprint of a barof chocolate (1,000 liters); currently, 70% are unaware.
• Only 42% of consumers were aware that annual milk
consumption causes CO2 emissions equivalent to those
produced by 1,140 km of driving a vehicle.
• 56% of consumers state they will switch to a sustainableproduct if they receive comprehensive information about
its environmental impact.

7%
3%
3%
March 2020

• In 2020, 61% of consumers were unaware of the water
footprint of the production of a pair of jeans (7,500 liters in2020); in 2023, 57% are unaware, confirming that the issue
persists.

October–November 2023

Source: Capgemini Research Institute, Sustainability in Consumer Products and Retail survey, March 2020, N = 4,779 consumers
who have paid more for a sustainable product; Capgemini Research Institute, Consumer demand survey, October–November 2023,
N = 4,307 consumers who have paid more for a sustainable product.

Ahold Delhaize USA is launching its HowGood label program
to provide product-sustainability ratings and traceability.
Other programs include Champions 12.3, an initiative withmultiple global partners focused on reducing food waste.
Another is the U.S. Food Loss and Waste 2030 Champions
program, run in partnership with the United States
Department of Agriculture (USDA) and the United States
Environmental Protection agency (EPA).30

Capgemini Research Institute 2024

40
What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

KEY INFORMATION THATCONSUMERS REQUIRE IN ORDER
TO ACT MORE SUSTAINABLY
63% of consumers want brands to play an active role in theireducation around sustainable products and 55% believe thatthe greater a brand’s sustainability effort, the more positive
the consumer perception of that brand.
In terms of obtaining this information, 46% support theinclusion of detailed labels and scannable QR codes on
product packaging that provide carbon, water footprint, andproduct recyclability attributes (see Figure 21).

FIGURE 21.
Consumers want product information relating to deforestation, impact on water resources and air quality

KEY PRODUCT ATTRIBUTES, AS CITED BY CONSUMERS

63

of consumers want brands to play an activerole in their education around sustainableproducts

50%
48%
46%

Carbon-neutral certiﬁed products
Impact on air

51%
47%

Impact on water resources

51%
47%

Social impact of the product%55%

Impact on biodiversity

45%
41%
50%
46%

Environmental impact of the packaging
Amount of waste generated during manufacturing
Will you switch to a more sustainableproduct based on this information?

45%
39%
Do you want to see thisinformation through a QR code?

Source: Capgemini Research Institute, Consumer demand survey, October–November 2023, N = 11,681 consumers.

Capgemini Research Institute 2024

41
What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

Albert Heijn, the largest Dutch supermarket chain, is piloting
a “true-pricing” initiative at three of its AH to-go convenience
stores. When consumers buy a self-service cup of coffee in
Groningen, Wageningen, or Zaandam, they’ll see two prices:
the standard retail price and the true price. The latter factors
in CO2 emissions, water use, resource consumption, and labor
conditions related to the production of coffee, cow’s milk,
and oat milk.31 Highlighting a few consumer preferences(see Figure 22), we found that despite the focus on buying
responsibly price is still by far the most important influencing
factor on purchasing decisions:• 57% of respondents value local production products as
a product attribute, and 52% want to see this data via ascannable QR code.
• 52% of respondents consider sustainability of packaging(e.g., eco-friendly, biodegradable) as an important productattribute, and 49% want to see this data via a scannable QR
code.

FIGURE 22.
Consumers consider multiple important attributes for grocery purchasing decisions

RELATIVE IMPORTANCE OF PRODUCT ATTRIBUTES WHEN SHOPPING FOR GROCERIES
Certiﬁcations like Fair Trade, Organic, or B Corp inﬂuence
my trust in a product and my willingness to buy it

45%
46%

Company’s engagement with local communities
or charitable activities

40%
40%

Lab-grown meat or plant-based meat substitutes

43%
38%
49%
52%

Sustainable packaging

52%
57%

Locally produced products
Information on the environmental impact of the product

45%
45%
49%
49%

Organic sourcing

57%

Price

I wish to see this data via a scannable QR code69%
Important attribute

Source: Capgemini Research Institute, Consumer demand survey, October–November 2023, N = 11,681 consumers.
Capgemini Research Institute 2024

42
What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

IN 2023 BOTH IN-STOREAND ONLINE SHOPPINGHAVE INCREASEDIn November 2023, 66% of consumers said they had interacted
significantly with physical stores, up from 61% in November 2022 ascompared to 36% who shopped online in November 2023, up from
33% in November 2022.

%

66

of consumers said they had interacted
significantly with physical stores, up from 61%
in November 2022

Capgemini Research Institute 2024

43
What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

FIGURE 23.

As in 2022, preference for in-store shopping increases with age:

Consumers' interactions with physical stores and online is gradually increasing• 72% of Boomers (aged 57–75), up from 69% in November
2022, say their level of in-store interactions is high today,
compared with only 56% of Gen Z (aged 18–24), up from 45% in
November 2022.

% OF CONSUMERS SHOPPING AT PHYSICAL STORES AND ONLINE WITH RETAILERS

67%

61%

66%

41%

34%

November 2020

38%

November 2021

Physical stores

33%

November 2022

36%

Our 2022 research revealed that consumers spread theirpurchases across physical and online channels, a trend that
continues in 2023. In November 2022, 56% of grocery shoppers
said they go to the store to purchase the bulk of their groceries,
supplementing this with small online orders as required. In our
November 2023 survey, a similar percentage of consumers (51%)
say the same.

November 2023

OnlineSource: Capgemini Research Institute, Consumer demand survey, October–November 2023, N = 11,681 consumers;
Capgemini Research Institute, What matters to today’s consumer, January 2023; Capgemini Research Institute, Whatmatters to today’s consumer, January 2022.
Note: The question asked was “Please indicate your frequency of using physical stores when shopping with retailers.
Please rate on a scale of 1 to 7, where 1 = very low interaction and 7 = very high interaction.”

Capgemini Research Institute 2024

44
What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

05

DELIVERY AND FULFILLMENT
CONTINUE TO TAKE PRECEDENCE
OVER IN-STORE EXPERIENCES

Capgemini Research Institute 2024

45
What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

Grocery shoppers place greater importance on delivery andfulfillment in 2023 as they did last year:

Consumers’ willingness to pay for fast delivery has
increased from last year

• 43% of consumers say that delivery and fulfillment are
the most important factors when shopping for groceries,
compared with 41% in November 2022.

In November 2022 and November 2023, consumers wereasked what percentage of their order value they would
be willing to pay for certain delivery speeds and services,
assuming an average order bill of $30. Across all shoppers inNovember 2023, consumers said they would be willing to pay
6% for two-hour delivery, up from an average of 4% among
all consumers in November 2022. This trend is consistentacross key demographic segments (see Figure 24).

• 39% say the same for in-store experiences, up from 33% in
November 2022.
Health and beauty shoppers:• Similarly, 41% of consumers say that delivery andfulfillment are the most important aspects of shopping
for health and beauty products, up from 39% in November2022.
• 40% say the same for in-store experiences, up from 34% in
November 2022.

Amazon’s Prime Air will offer air delivery within 60 minutes to
consumers in California.
Likewise, Walmart sees delivery growth outpacing pick-up
growth with sub-3-hour and sub-1-hour delivery segments
showing the fastest increases in uptake.32

Capgemini Research Institute 2024

46
What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

FIGURE 24.
Shopper willingness to pay for two-hour delivery is up from 2022

AVERAGE % OF ORDER VALUE SHOPPERS ARE WILLING TO PAY FOR TWO-HOUR DELIVERY, ACROSSCONSUMER SEGMENTS

9%
6%

6%

4%

Overall

Gen Z

8%
5%

Millennials

8%
6%
4%

5%
3%

Gen X

Boomers

November 2022

7%

6%

5%

With
children inhousehold

6%

6%

4%

4%

4%

4%

Withoutchildren inhousehold

Urban

Suburban

Rural

November 2023

Source: Capgemini Research Institute, Consumer demand survey, October–November 2023, N = 11,681 consumers: 1,048 Gen Z
consumers, 3,358 Millennial consumers, 3,586 Gen X consumers, 3,689 Boomer consumers; 4,096 consumers with children in theirhousehold, 7,588 consumers without children in their household; 5,097 urban consumers, 4,936 suburban consumers, 1,648 rural
consumers; Capgemini Research Institute, What matters to today’s consumer, January 2023.

Capgemini Research Institute 2024

47
What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

In our current research, across all consumers, 7% is theaverage they would be willing to pay for 10-minute delivery,
compared with 4% in November 2022 (see Figure 25). The
increase may reflect a desire to absorb inflation-driven
prices for convenient service, even during an economicallydifficult period.

FIGURE 25.
Gen Z shoppers are willing to pay the most for 10-minute delivery

AVERAGE % OF ORDER VALUE SHOPPERS ARE WILLING TO PAY FOR 10-MINUTE DELIVERY, ACROSSCONSUMER SEGMENTS

The key trends by age, location, and delivery satisfaction
largely remain the same as last year:• On average, Gen Z consumers are willing to pay 10% of theorder value for 10-minute delivery, compared to 7% overall

10%7%• Willingness to pay for fast delivery decreases with age• Urban shoppers are more willing to pay than suburban andrural shoppers

6%

4%

Overall

Gen Z

9%

9%
7%

5%

Millennials

5%

4%

5%

3%

Gen X

8%

7%

Boomers

November 2022

With
children inhousehold

7%

6%

4%

4%

4%

4%

Withoutchildren inhousehold

Urban

Suburban

Rural

November 2023

Source: Capgemini Research Institute, Consumer demand survey, October–November 2023, N = 11,681 consumers; 1,048 Gen Z
consumers, 3,358 Millennial consumers, 3,586 Gen X consumers, 3,689 Boomer consumers; 4,096 consumers with children in theirhousehold, 7,588 consumers without children in their household; 5,097 urban consumers, 4,936 suburban consumers, 1,648 rural
consumers; Capgemini Research Institute, What matters to today’s consumer, January 2023.

Capgemini Research Institute 2024

48
What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

Consumers’ in-store expectations

FIGURE 26.
In-store curated recipes and other content is one of the most important attributes for consumers while shopping for groceries

Consumers expect a level of ease while shopping in-store,
including the ability to try new products in-store, availabilityof in-store sustainability stations, and for technology in-store
to offer the same level of interaction as an app (see Figure
26).

Stockouts are a concern
for many consumers
47% of retail and 38% of consumer product organizations
expect stockouts/product shortages in the 2023 holiday
season, and nearly 40% of organizations expect latedeliveries due to import delays.33 While organizations employ
a number of demand forecasting and demand-planning
tools, seasonal stockouts and product shortages could still
occur. Stockouts or poor substitutions could lead to loss of
consumer trust, particularly in industries such as groceries.

IMPORTANT IN-STORE SERVICE ATTRIBUTES FOR CONSUMERS WHEN SHOPPING FOR GROCERIES

36%
30%

In-store curated recipes
and other content

35%
30%

In-store culinary lessons'November 2022

32%
28%

Ability to dine in at thegrocery store'November 2023

Source: Capgemini Research Institute, Consumer demand survey, October–November 2023, N = 11,681 consumers; Capgemini ResearchInstitute, What matters to today’s consumer, January 2023.

Capgemini Research Institute 2024

49
What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

Consumers are concerned they will not be able toobtain the products they require or want
Given the ongoing unreliability of supply chains, many
consumers are still concerned about the medium-term
availability of essential products. In November 2023, 40%(41% in 2022) of consumers said that they were highly
concerned regarding the potential unavailability of groceries
and food supplies, and 39% (35% in 2022) voiced the same
concerns in relation to prescription medication (see Figure
27).
Changes in consumer shopping behavior in response to
stockouts:• In the event of a preferred product becoming unavailable,most consumers (60%) prefer to buy a similar product froma competing brand.
• Additionally, 55% say that they have bought an item of
the same weight/size made by a different brand, at alower price.
Consumer goods companies are increasingly giving theirretail partners more visibility of inventory levels, a powerfuldata insight that they can use across their own supply chains,
as well as convenience features that expedite processes.
Unilever, for example, offers the Shikhar app, which allows
Unilever’s small-scale retail partners (or Kirana stores) the
opportunity to connect directly with Unilever sellers andplace orders 24/7.34

FIGURE 27.
Consumers are most concerned about the unavailability of essential products% OF CONSUMERS CONCERNED ABOUT PRODUCT UNAVAILABLITY
Groceries and food supplies

40%

23%

19%

18%

Prescription medication

39%

23%

19%

19%

Household supplies

32%

Over-the-counter healthcare products

29%

26%

21%

23%

Personal care products

29%

24%

20%

27%

25%

20%

24%

Apparel and accessories

19%

23%

22%

36%

Consumer electronics/white goods

19%

24%

24%

34%

Home improvement supplies

18%

22%

Furniture and furnishings

17%

Luxury products

15%

Highly concerned

23%

20%
15%

Somewhat Concerned

37%
41%

22%
15%
Slightly concerned

55%
Not at all concerned

Source: Capgemini Research Institute, Consumer demand survey, October–November 2023, N = 11,681 consumers.

Capgemini Research Institute 2024

50
What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

06

HOW BRANDS AND RETAILERSCAN MANAGE AND ADAPT TOSHIFTS IN CONSUMER BEHAVIOR

Capgemini Research Institute 2024

51
What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

Adapt to compete
Brands and retailers use generative AI tools to
become more consumer-centric
There is no doubt that 2023 has been the breakthrough yearfor generative AI – and this was evident in its use for shopping
across a range of categories. Already 20% of consumers
globally and 27% of US consumers have used generative AI aspart of their shopping for products or services in 2023, andthe evidence is this trend will accelerate in 2024.
Indeed, we found 47% of Gen Z and Millennials would like achatbot with features such as ChatGPT to facilitate asking
questions and to receive responses quickly. In fact, 42% ofMillennials would seek advice on future shopping experiencesfrom generative AI tools based on their purchase history andloyalty to products.

We also found evidence that brand-owners and retailers
recognize that generative AI tools provide a seamless,customized shopping experience that will become the
new floor of consumer expectations going forward. Of
the surveyed retail organizations, 93% say generative AI
is a topic for boardroom discussion for them, and 83% ofretail organizations agree that generative AI can be used
to improve customer service by providing automatedand personalized support. We found that 62% of retailorganizations have established a dedicated team and budget
to integrate generative AI into future product/service
development plans. For instance, 63% of organizations havestarted pilots for the use case “Efficient, self-optimizing
real-time customer-service chatbots,” and 11% have already
implemented the use case.35

Generative AI can also help drive cost out for retailers whoare increasingly operating on tight margins. 79% of retailorganizations say the use of generative AI can help improve
internal operations and enhance facility maintenance. 62%
of retail organizations expect benefits of more than 10%,within three years, in terms of an increase in operational
efficiency and workflow automation. Retail organizations areprioritizing the use of Gen AI in their logistics function likeroute optimization (55%) and in operations management andsupply chain optimization (45%).37
Wendy’s, an Americal fast food chain is developing FreshAI – agenerative AI automated ordering system in drive-throughs,
to im-prove operational efficiency and reduce errors in foodordering and delivery.38

A good example of this is Hopla, the AI chatbot that
Carrefour.fr has integrated into its online platforms, Hoplaenhances the consumer shopping experience by providing
a range of consumer benefits from personalized productrecommendations, budget-friendly shopping assistance, andmenu ideas.36

Capgemini Research Institute 2024

52
What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

Leverage technology to reduce cost for consumers
In order to keep pace with consumer preferences and, more
importantly, look to reduce overall in-store costs, brands andretailers are re-imagining physical stores. Identifying andadopting new and innovative technological solutions will be a
critical enabler of this shift.
Retailers can embed Internet of Things (IoT) sensors
throughout a store’s tech and standard equipment (such ascoolers and freezers) to remotely detect and even predictmaintenance events before they disrupt store operations.
These tech-enabled tools help to minimize the labor required
for routine maintenance checks and also increase food safety.
Walmart uses sensors and IoT applications to monitor thetemperature of individual refrigerators and the general
status of equipment to take proactive measures and prevent
breakdown. It also utilizes IoT sensors to control remotely its
heating, ventilation, and air conditioning (HVAC) systems instores, thereby reducing energy consumption and utility costs
without negatively impacting the consumer experience.39
US consumer goods multinational P&G boosted sales andrevenue by improving product visibility and accessibility using
artificial intelligence (AI). The AI tools analyze consumer
behavior and store layout to determine the most effective
product placement.40

Unlock channel growth
Leverage social as both a feeder channel and a sales
channel in its own right
The research shows social media plays an increasingly
important role in discovery across all demographics andshopper journeys. Almost 40% of young people go to
TikTok or Instagram when looking for something like aplace for lunch.41 Whereas 33% of consumers surveyedhave discovered a new product or brand on social
media in the last six months. This is already significant
but becomes even more so among Gen Z(60%) andMillennials (45%).
Trust in the honesty of product reviews on social is alsosignificantly high; 40% of Gen Z and 40% of Millennial
consumers feel they get to know honest reviews insocial media feeds.
There is also strong evidence that brand presence onsocial media is increasingly driving traffic to brandplatforms and/or partner retailers. 42% of Gen Zs and
37% of Millennials claim that they are influenced topurchase a product by social media advertisements.
Sephora has recently launched gamified experience

Capgemini Research Institute 2024

53
What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

through a feature called "Beauty Insider Challenge"
in its Beauty insider program, members-only mobile
and online social platform, appealing to the Gen Zs
more. Customers are rewarded with bonus points forcompleting the challenges with tasks to drive instore
traffic like buy-online, pick-up in-store, trying Sephora’s
in-store shade-matching tool, Color iQ along with othertasks.42
Consider social commerce as a sales channel in its
own right, especially for reaching Gen Z audiences
Social platforms such as TikTok and Instagram are not justfor product discovery but are also turning into preferred
platforms for purchase. 46% of Gen Z consumers surveyedhave already made a purchase on social media platforms in
the past year across multiple categories (including groceries).
Carrefour has partnered with Brut to form social commercecompany Brutshop, an online platform through whichusers will be able to make purchases during events livestreamed on social networks. In France, 60% of Carrefour
consumers say they are interested in live-shopping services.
Commenting on the partnership, Elodie Perthuisot, Carrefour
Group's Executive Director of e-Commerce, Data, and Digital
Transformation, said: “By pooling our retail and social
media strengths, our aim is to create the most powerfulsocial commerce platform on the French market. This newcommunity shopping experience will generate growth andvalue for both our companies.” 43

People buy from people: Brands and retailers
increasingly tap into the power of influencers withspecially designed programs for story-selling
2023 appears to be the year when brands have flipped froma reactive use of influencers to a proactive use of brandambassadors. In the past few years, micro influencers44
have been attracting consumer attention with high quality
content and user interactions. Although macro influencers45
have more reach, micro influencers are often better able toconnect with a targeted audience. Finding authentic brandambassadors from these communities and inviting them toshare their real-life stories on brand platforms/promotions
has been particularly salient in 2023. Of the surveyed
consumers, 82% are highly likely to follow a recommendation
made by a micro-influencer.46 Brands are creating specialized
creator and influencer programs to bring influencers on
board for their product promotions:in our strategy will help fuel inspiration for our consumers
by connecting their favorite creators directly with ourbrand and the brands they love at Walmart.” 47• Yeti, who make quality coolers for a range of outdoor
pursuits, dedicate a third of their website to Stories, inwhich brand ambassadors relate their real-life experiences
across a range of use cases from angling, rodeo, barbecues,
through to snowboarding. Together with the community
engagement tools, such as their award-winning 2023 Yearin-Preview planner, these authentic stories create a strong
basis for trust and loyalty and are credited with fuelingmuch of Yeti’s double-digit growth through the past 5 years.

• Walmart has launched Walmart Creator platform, whichaims to build features and experiences to support creationand publishing of content. “We know our consumers are
inspired by the content and stories they see from theirfavorite influencers in their social feeds every day,”enthuses William White, CMO, Walmart US. “This next step

Capgemini Research Institute 2024

54
What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

Lead with purpose
Reduce food waste to help combat the cost-of-living
crisisFood waste is one of the biggest problems that we, as a
global community, are facing. It is estimated that around onethird of all food produced globally is wasted every year.48 This
is not only a huge economic loss but also a major contributor
to greenhouse gas (GHG) emissions.
Advances in AI technology can help reduce food waste byidentifying and resolving issues early. Retailers can scan andidentify produce that would normally be disposed of, butwhich is still edible. AI also allows retailers and restaurants
with limited resources to manage their stock levels
effectively. Retailers can also nudge consumers to modify
their shopping behaviors to reduce food wastage.

Brands and retailers have turned to technology to boost
their food-waste initiatives. Supermarket Lunds & Byerlys
offers employees the ability to scan and weigh food before
it is added to the grocer’s deli food bars and again before thefood is thrown away. Albertsons has deployed fresh-food
optimization technology on an AI-driven platform across its
entire store network, with the goal of achieving a significant
reduction in the company’s food waste by 2030.49

Educate consumers on the sustainability impact of
their shopping
Society requires that consumers achieve greater awarenessof the impact of their purchase behaviors; 52% of consumers
say that they do not possess the necessary information
to verify sustainability claims, and half report a lack ofglobal standards of sustainability branding as an issue. In
this context, retailers and consumer product firms canfoster awareness of the sustainability, climate change,

and nutrition impact of consumer purchase decisions. Thiscan be facilitated by multiple mediums, such as in-store
sustainability stations, which 38% of consumers rated asa desirable in-store attribute. Around 45% of consumers
want an accurate idea of the environmental footprint of aprospective purchase made available to them via a QR code.
In December 2022, L’Oréal launched its Product Impact
Labeling system in the US (and in Canada in the followingyear). The initiative provides consumers with transparent
scientific information about a product’s environmental andsocial impact, and compares this with other L’Oréal productsin the same category. Products are ranked on a scale from A
to E that considers 14 planetary-impact factors, such as GHG
emissions, water scarcity, ocean acidification, and impact
on biodiversity, measured at every stage of the product’s
lifecycle, from ingredients to packaging, manufacturing
process, transport, and ultimately use and disposal.

Capgemini Research Institute 2024

55
What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

This initiative was first launched in France in 2020. “L’Oréal’s
Product Impact Labeling system is a core component of
the L’Oréal for the Future program, which outlines oursustainability commitments for 2030. Its roll-out in the
US will help change consumer behavior, accelerating thebeauty industry's progress toward greater sustainability,”emphasizes Marissa Pagnani McGowan, CSO for North
America. “This comes at a time when sustainability is
increasingly a focus for US consumers. Using principles ofenvironmental science, this tool will empower consumers,
support more informed purchasing decisions, and foster aculture of greater brand transparency.” 50, 51

Capgemini Research Institute 2024

56
What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

Conclusion
The cost-of-living crisis continues to dominate consumer sentiments in 2023 andlooks set to remain high on their list of concerns for the foreseeable future. However,
the impact in many geographies has eased from 2022 and consumers are interactingwith stores and online channels more than they did last year, and are willing to pay
more for faster delivery and fulfillment. Today, consumers are willing to explore newtechnological avenues in their shopping journey and want to use generative AI tools forsearch, recommendations, and support. Social commerce is a key channel, particularly
in terms of its appeal to Gen Z consumers. With evolving technology preferences,consumers are becoming more conscious of their sustainability impact, demanding
more sustainable options and information before making purchase decisions.

Capgemini Research Institute 2024

57
What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

Researchmethodology

CONSUMERS BY AGE GROUPCONSUMERS BY GENDER IDENTITY
52%
52%

We surveyed 11,681 consumers over the age of 18 in 11
countries across North America, Europe, and Asia–Pacific.
The global survey took place in October and November
2023. The demographic details of the consumers are below.

29%

28%
29% 28%

31%

34%

47%

47%

33%
30%

48%

51%

32%

9%
10%

9%

Gen Z, age
18–24

Millennials,
age 25–40

Gen X, age
41–56

Boomers,
age 57–75

Woman

November 2021

November 2021

November 2022

Man

November 2022

November 2023

November 2023

Capgemini Research Institute 2024

58
What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

CONSUMERS BY NUMBER OFPEOPLE IN HOUSEHOLDCONSUMERS BY SELF-IDENTIFIEDRESIDENTIAL AREA
43%
43% 44%

CONSUMERS BY HIGHEST
EDUCATIONAL LEVEL

42%
41%

3%
2%

Elementary school

42%

2%

36%
34%

34%

17%

22%

23%

18%

20% 21%
16%

18%

2

3

30%

15%
16%

19%
5%
6%

5%
1

45%
43%
42%

High school/secondary school

4

32%
15%

2%

6+

15%

Postgraduate degree(e.g., MA, M. Tech, MBA)

3%

2%
5

14%

32%

Undergraduate degree(e.g., BSc, B. Tech)

Large city/urban area

Town/suburban
area

Rural area

16%
4%

Doctoral or professional degree(e.g., PhD, EdD, MD, JD/LLD)

5%
5%
3%

Other

2%
2%

November 2021

November 2022

November 2023

November 2021

November 2022

November 2023

November 2021

November 2022

November 2023

Capgemini Research Institute 2024

59
What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

CONSUMERS BY COUNTRY OF
RESIDENCECONSUMERS BY EMPLOYMENT

41%
46%
45%

Full-time employed

10% 10% 10% 10% 10%

CONSUMERS BY ANNUAL
HOUSEHOLD INCOME
51% 43%

10% 10% 10% 10% 10%

45%9%

9% 9% 9% 9% 9%9%9% 9% 9%

9%

12%
13%

Part-time employed

23%

14%
Self-employed, consultant,or freelancer

6%
6%

14%

7%
21%

Retired

21%

19%
14%
11%
11%

Unemployed

22%

15%

0%

0%

CanadaAustralia

0%

0%

0%

Germany

France

Italy

0%

Japan

0%

0%

Spain

0%

0%

14%

16%

14%

12%
6%

0%

UnitedKingdom

Netherlands Sweden

23%

UnitedStates1%
Less than$20,000$20,000–$59,999$60,000–$99,000$100,000–$149,999+

Prefer not
to say4%
3%

Full-time student

3%
November 2021

November 2022

November 2023

November 2021

November 2022

November 2023

November 2021

November 2022

November 2023

Source: Capgemini Research Institute, Consumer demand survey, October–November 2023, N = 11,681 consumers; Capgemini Research Institute, What matters to today’s
consumer, January 2023, N = 11,300 consumers; Capgemini Research Institute, What matters to today’s consumer, January 2022, N = 10,179 consumers.
*The study findings reflect the views of the respondents to our online questionnaire for this research and are intended to provide directional guidance.
Capgemini Research Institute 2024

60
What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

Appendix
SERVICE ATTRIBUTES TESTED AMONG GROCERY AND HEALTH AND BEAUTY SHOPPERS:
Delivery and fulﬁllment-related services – Grocery and health and beauty• Easy and clear return policies• Ability to specify delivery time slot
• In-home delivery (e.g., front entryway, garage)• Order online with same day home delivery• One-click addition to online shopping cart (based on past purchases)• Order in store with same day home delivery• Order online, pick up curbside/at store• Order online as a subscription/on a recurring basis

In-store experiences – Grocery

In-store experiences – Health and beauty• Contactless checkout (i.e., self-checkout, no contact
with store employee required)• In-store curated recipes and other content (e.g., mealplanning tips, ingredient suggestions)• Ability to dine in at the grocery store• In-store culinary lessons on how to cook healthy meals
for less money• Contactless checkout (i.e., self-checkout, no contact with store
employee required)• In-store makeup lessons/workshops• Ability to personalize the product• Technology to help with your decision (e.g., virtual try-on,
skincare analysis)

Source: Capgemini Research Institute analysis.

Capgemini Research Institute 2024

61
What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

References
1.

Bureau of Economic Analysis, Personal Income andOutlays, October 27, 2023.

11. Capgemini Research Institute, AI in CX consumer survey,
May 2018, N = 10,000 consumers.

20. The Financial Times, “When it comes to celebrity beauty
brands, ‘authenticity’ sells,” February 2023.

2. The New York Times, “Why are food prices so high in
Europe?” May 30, 2023

12. Acumen Research and Consulting, “Social commercemarket size – Global industry, share, analysis, trends andforecast 2022–2030,” December 2022.

21. Nielson IQ, “Celebrity beauty brands: Key success drivers
in 2023,” June 30, 2023.

3. Reuters, “French consumers forced to cut back onessentials, Carrefour CEO warns,” August 29, 2023.
4. CNBC, “Walmart and Target face similar problems – but
only one is thriving,” August 17, 2023.
5. AP News, “Macy’s had to discount spring goods to entice
cautious consumers and sees more warning signs ahead,”
August 22, 2023.
6. FT, “Tesco chief sees ‘encouraging’ signs that inflationarypressures are easing,” June 2023.
7.

The Guardian, “Carrefour puts ‘shrinkflation’ pricewarnings on food to shame brands,” September 14, 2023.

8. Ecommerce News Europe, “Generative AI in ecommerce:
A look beyond texts,” July 3, 2023.
9.

ESM, “Carrefour France introduces AI-powered online
shopping chatbot," June 15, 2023.

10. FoxNews, “How Walmart is using AI to change how you
shop forever," October 16, 2023.

13. WordsRated, “BookTok Statistics,” September 27, 2023.
14. e-Marketer, “Social Commerce 2023: Social media
and ecommerce convergence trends bring growth
opportunity for brands,” January 27, 2023.
15. CNBC, “48% of Gen Zers will do their holiday shopping on
TikTok, Instagram this year – they trust the ‘wisdom of
their friends,’ expert says,” October 17, 2023.
16. CNBC, “Livestream shopping booms as small businesses
strike gold on social media,” June 9,2023
17. CNBC, “Livestream shopping took China by storm. Now
Amazon, TikTok and YouTube are betting the QVC-style
pitches will take off in the U.S.” February 14, 2023.
18. The Harris Poll, “Estée Lauder makes a play for Gen Z,”
March 16, 2023.
19. Axios, “Celebrity retail brands surging in popularity,” July21, 2023.

22. Nielson IQ, “The ultimate guide to celebrity beauty
brands,” June 22, 2023.
23. Hearst Bay Area, “From zero to hero: How thesecompanies Mastered Social Commerce,” July 21, 2023,
https://marketing.sfgate.com/blog/from-zero-to-herohow-these-companies-mastered-social-commerce.
24. Modern Retail, “How Shopify’s partnership with Drakelays the groundwork for future celebrity collaborations,”
October 17, 2023.
25. Food Engineering, “PepsiCo trials paper-based packaging
for Walkers Baked multipacks,” March 13, 2023.
26. Packaging World, “McDonald's tests strawless lids
in U.S., Nestlé Brazil packs condensed milk in pouch,
Jägermeister swaps secondary packaging to corrugated,”
April 4, 2023.
27. Aldi Corporate Sustainability, “Waste and recovery,”accessed on Nov 10, 2023.

Capgemini Research Institute 2024

62
What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

28. FREESTUFF4U, “The Freecycle Network: A remarkable
movement transforming the UK’s waste and consumption
landscape,” April 15, 2023.

36. Carrefour, “Carrefour integrates open AI technologies
and launches a generative AI-powered shopping
experience,” June 8, 2023.

29. Capgemini Research Institute, How sustainability isfundamentally changing consumer preferences, 2020.

37. Capgemini Research Institute, “Harnessing the value ofgenerative AI: Top use cases across industries,” July 2023.
N = 1,000 organizations

30. Supermarket News, “Ahold Delhaize USA is winning at
food waste,” June 30, 2023.
31. Trend Watching, “For coffee to go, Dutch supermarket
Albert Heijn pilots voluntary higher prices that coverhidden costs,” April 20, 2023.
32. Guggenheim Securities Analyst Report, “WMT:
Decent appetite for saving money and living better,”October 2023.
33. Capgemini Research Institute, Navigating the future:
Building resilient and efficient supply chains in the
consumer products and retail industry, November 2023.
34. Unilever “Navigating the future: The in-house developed
app that’s transforming a traditional sales model,” April
11, 2023.
35. Capgemini Research Institute, “Harnessing the value ofgenerative AI: Top use cases across industries,” July 2023.

38. Wendys,” Leading Drive-Thru Innovation with Wendy’s
FreshAI”, December 11, 2023
39. Retail TouchPoints, “IoT in retail: Top 5 use cases and reallife examples,” July 17, 2023
40. InData Labs, “AI in FMCG: Top use cases,” June 29, 2023.
41. The Bottom Line, “Social Media as Search Engines: What
Does It Mean for Your Business?” April 2023
42. Sephora adds gamified experience to Beauty Insider
loyalty program in appeal to Gen Z", Sep 27, 2023

45. Anyone with between 100K and a million followers onsocial media
46. Forbes, “Micro-Influencer Power: Building Brand Trust
And Driving Conversions,” August 2023
47. Walmart, “Walmart launches new content creatorplatform,” October 18, 2022.
48. Greenly, “Global Food Waste in 2023,” August 22, 2023.
49. Grocery Dive, “How AI, digital innovation can help grocers
reduce food waste,” August 28, 2023.
50. L’Oréal Groupe, “L’Oréal USA rolls out product labelingsystem to educate consumers about the environmental
impact of its products,”.
51. L’Oréal Groupe, “To empower consumers in theirpurchasing decisions, L’Oréal Canada launches productimpact labeling system,” March 2023.

43. European Supermarket, “Carrefour teams up with Brut toform social commerce company,” February 2, 2022.
44. Anyone with between 10K and 100K followers on social
media that has a more curated, cohesive communityof followers

Capgemini Research Institute 2024

63
What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

Key contributors
Tim Bridges

Lindsey Mazza

Kees Jacobs

Global Sector Lead, Consumer Products,
Retail Distribution, Capgemini

Global Retail Lead, Capgeminilindsey.mazza@capgemini.com

Vice President, Global Lead for Insights andData, Capgemini Consumer Products and Retail

Owen McCabe

Bhavesh Unadkat

Jerome Buvat

Vice President, Head of Marketing
Services, frog

Head of Capgemini Research InstituteSubrahmanyam KVJ

Marisa Slatter

Sumit Cherian

Senior Director,
Capgemini Research Institute

Director, Capgemini Research Institutemarisa.slatter@capgemini.com

Program Manager, Capgemini Researchtimothy.bridges@capgemini.com

Vice President, eCommerce, Capgemini

owen.mccabe@capgemini.com

bhavesh.unadkat@frog.co

subrahmanyam.kvj@capgemini.com

kees.jacobs@capgemini.com

jerome.buvat@capgemini.com

sumit.cherian@capgemini.com

Capgemini Research Institute 2024

64
What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

The authors would like to especially thank Kunal
Karamchandani and Sakthivel S from the Capgemini
Research Institute for their contributions to this research.
The authors would also like to thank EmmanuelFonteneau, Bas Morselt, Maaike Slagter, Michelle
Grujin, Achim Himmelreich, Vito Labate, Bridget Blaize,
Pallav Srivastava, Kristin E Morris, Rupali Chakraborty,
Ashwani Kumar, Jaydeep Neogi and Manish Saha for theircontributions to this research.

About theCapgemini Research Institute
The Capgemini Research Institute is Capgemini’s in-housethink tank on all things digital. The Institute publishes
research on the impact of digital technologies on large
traditional businesses. The team draws on the worldwide
network of Capgemini experts and works closely withacademic and technology partners. The Institute has
dedicated research centers in India, Singapore, the UK, andthe US. It was recently ranked number one in the world byindependent analysts for the quality of its research.
Visit us at www.capgemini.com/researchinstitute/

For more information,please contact:
Global contact
TIM BRIDGES
timothy.bridges@capgemini.com

LINDSEY MAZZA
lindsey.mazza@capgemini.com

FranceAustralia

Germany

AMIT SINGHANIA
amit.singhania@capgemini.com

ANDREAS UNRUHE
andreas.unruhe@capgemini.com

India

Netherlands

ANNE-SOPHIE THAUMIAUX
anne-sophie.thaumiaux@
capgemini.com

EMMANUEL FONTENEAU
emmanuel.fonteneau@capgemini.com

VIDHYA KRISHNASWAMY
vidhya.krishnaswamy@
capgemini.com

Spain

SwedenUnited States

United Kingdom

DAVID LUENGO RUIZ
david.luengo-ruiz@capgemini.com

CAROLINE SEGERSTÉEN RUNERVIK
caroline.segersteen-runervik@
capgemini.com

TED LEVINE
theodore.levine@capgemini.com

MICHAEL PETEVINOS
michael.petevinos@capgemini.com

THEO VAN ROEKEL
theo.van.roekel@capgemini.com

Capgemini Research Institute 2024

65
What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

More Capgemini Research Institute publications

Generative AI and the evolving
role of marketing: A CMO’S
Playbook

Illuminating the path: Building
resilient and efficient supply
chains in the consumer products
and retail industry

What matters to today’s
consumers: 2023 consumer
behavior tracker

Conversations forTomorrow, 4th edition:
The new face ofmarketing

Why consumer love
Generative AI

A new playbook for
Chief Marketing
Officers

The wake-up call:
Building supply chain
resilience in CPR

Reflect. Rethink. Reconsider:Why food waste is everybody’s
problem

The age of insight: How CPR
organizations can acceleratevalue capture from data

Capgemini Research Institute 2024

66
What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

Subscribe to latest researchfrom the Capgemini Research InstituteReceive copies of our reports by scanning
the QR code or visiting
https://www.capgemini.com/capgemini-research-institute-subscription/

Capgemini Research Institute

Fields marked with an are required
First Name

Last Name

Email

By submitting this form, I understand that my data will be processed by Capgemini as indicated above anddescribed in the Terms of use.

SubmitCapgemini Research Institute 2024

67
What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

NOTES

Capgemini Research Institute 2024

What matters to today's consumers 2024: consumer behavior tracker for the consumer products and retail industries

About Capgemini
Capgemini is a global leader in partnering with companies totransform and manage their business by harnessing the powerof technology. The Group is guided every day by its purpose of
unleashing human energy through technology for an inclusive andsustainable future. It is a responsible and diverse organization ofnearly 350,000 team members in more than 50 countries. With its
strong 55-year heritage and deep industry expertise, Capgemini istrusted by its clients to address the entire breadth of their businessneeds, from strategy and design to operations, fueled by thefast evolving and innovative world of cloud, data, AI, connectivity,
software, digital engineering, and platforms. The Group reported in
2022 global revenues of €22 billion.

Get the Future You Want | www.capgemini.com

Copyright © 2024 Capgemini. All rights reserved.