1. “Premiumization” is Subjective to Each Consumer
Premiumization involves creating high-quality, value-driven products that justify their higher price points. However, this concept can be challenging for manufacturers to navigate. The term “premium” has become prevalent in the industry, yet its interpretation varies among consumers. What one person views as valuable may not hold the same worth for another. This blog will delve into the top five trends in premiumizing products in 2025.
It is crucial to consider that each consumer is an individual who evaluates value and premium status in unique ways. For instance, FMCG Gurus’ consumer insights highlight that a striking 78% of consumers globally assess price as a key indicator of whether food and beverages offer good value, with taste coming in as a close second.
2. Exclusivity: Consumers Find Limited-Edition Products More Exciting
A common driver of premium pricing is the intentional creation of limited-edition products, which enhances their rarity and appeal. Consumers are drawn to these exclusive items, as they often feature novel and experimental flavors and experiences. This limited availability can generate a sense of urgency, encouraging consumers to act quickly to get these products, thereby increasing their willingness to pay more. FMCG Gurus’ market research reveals that 64% of global consumers express excitement over trying limited-edition flavors, reflecting a broad desire for new experiences.
The concept of exclusivity has gained even more traction in the age of social media, where the excitement associated with limited releases is amplified by ‘FOMO’ (Fear of Missing Out). This phenomenon reduces price sensitivity, prompting consumers to buy products they might not have considered before. Particularly among younger adults, showcasing these unique products on social media has become a way of expressing sophistication and good taste.
3. Responsible Luxury: 1 in 4 Consumers Opt for Environmentally Friendly Products
The positioning of certain products as ethically produced or environmentally sustainable has enabled them to command a premium price in the market. This trend appeals to the growing number of consumers who prioritize sustainability; nearly three-quarters are concerned about environmental issues. Notably, over two-thirds have altered their purchasing behavior within the last two years to embrace more sustainable options. Among these conscientious consumers, our insights show that 40% have specifically chosen one product over another based on its environmental impact. This shift presents opportunities for premium pricing, as many consumers feel a moral obligation to pay a higher price for sustainable goods.
Not only do consumers choose premium, environmentally friendly products because it aligns with their values, but it also allows them to feel good. FMCG Gurus’ consumer insights show that more than 90% of shoppers who consider sustainability claims find them to be influential in their purchasing decisions, especially those focused on environmental benefits and animal welfare. Therefore, the appeal of these premium-priced products extends beyond the ethical concerns; they also cater to consumers’ desires to perceive themselves as socially responsible and feel good by doing good.