No Cap: Disruptive Gen Z Trends

No Cap: Disruptive Gen Z Trends

No Cap: Disruptive Gen Z Trends

Overview:

Did you know Gen Z’s attention span is just 8 seconds? That’s about how long it takes to scroll past a meme or see a TikTok video go viral…then become old news. Welcome to the whirlwind world of Gen Z trends, where today’s slay is tomorrow’s cringe.

Forget everything you thought you knew about consumer behavior—Gen Z is rewriting the rulebook. In today’s fast-changing world, Generation Z, born in the late 1990s through early 2000s, leads the charge in redefining societal norms through their unique preferences and behaviors. Gen Z is outspoken and unapologetic, representing a generation with unparalleled access to information, diverse perspectives, and significant impact on global trends.

Gen Z makes up roughly 20% of the population and has over $360 billion in spending power, influencing what we buy, how we live, and what we believe. Many brand owners don’t understand just how different Gen Z is from previous generations. As a result, brands struggle to effectively engage this mobile-first, socially conscious generation.

In a competitive market, staying relevant requires shaking up old category norms and embracing a modern, even rule-breaking approach. By unlocking insights behind Gen Z’s behavior and cultural preferences, we uncover what drives their decisions and how brands can succeed with this influential generation of consumers. Here are 6 Gen Z trends to watch out for:

What it is:

It’s the strategy of integrating video game elements, such as challenges and points, into non-game environments to drive engagement, loyalty, and motivation.

Insight:

Gen Z is perpetually plugged in, spending 9+ hours per day on screens. With 90% of Gen Z being video gamers, they are wired for gamified experiences, and their shopping experience needs to be equally as engaging. Traditional shopping lacks the stimuli Gen Z expects in their daily life, and gamification is a way to engage Gen Z shoppers with new brands or brand experiences. With the gamification market projected to grow 25% from 2024-2030, there is a big opportunity for brands and retailers to increase Gen Z buy-in by incorporating game design features into the shopper journey.

Brand doing it right:

Peloton launched gamified rides that mimic a dynamic video game experience instead of watching an instructor through a 2D tablet. Riders must push themselves to score – high resistance, cadence, and output allow them to rack up points and move up the leaderboard. The sense of progress and achievement keeps riders hooked and coming back for more.


What it is:

Social commerce is the process of selling products directly through social media. From product discovery to checkout, the entire shopping experience takes place integrated with content on social media platforms.

Insight:

Social media is not just for scrolling! Social shops, such as TikTok Shop and Instagram Shop, spur discovery and purchase without users having to leave their social media feeds. US TikTok Shop sales hit $17.5 billion in 2024 with 75% of TikTok users saying they base their household purchase decisions on products they discover in the app. For Gen Z, social media is synonymous with shopping, making it central to discovery.

Brand doing it right:

E.l.f. Cosmetics has thrived on TikTok Shop by creating engaging content like trendy challenges and creative tutorials that appeal to the platform’s users. The brand collaborates with popular TikTok influencers and uses live streams to showcase products and interact with viewers. By integrating TikTok Shop, e.l.f. provides a seamless shopping experience with exclusive deals. Their relatable, fun brand voice and active engagement with user-generated content further enhance their success on the platform. By effectively combining these strategies, e.l.f. Cosmetics has tapped into TikTok’s vibrant and engaged community, driving brand awareness, engagement, and sales.


What it is:

In a time of uncertainty and stress, Gen Z looks fondly to eras they didn’t actually experience but perceive favorably, driving them toward products and aesthetics that evoke nostalgia.

Insight:

Gen Z looks back to the past to escape anxiety about the future of climate change, rapidly rising inflation, and global unrest. Nostalgia is escapism and Gen Z is embracing any way out: music, movies, fashion, and products. 80% of US Gen Zers like when brands bring back old aesthetic styles and 74% love when brands produce retro products.

Brand doing it right:

Olipop is a healthier soda that appeals to Gen Z through retro branding and throwback flavors. It positions itself as a healthier alternative to traditional soda while using cultural references from past decades in its advertising and social media. By blending nostalgic elements with modern health benefits, Olipop effectively attracts Gen Z, offering a product that reminds them of the past and fits their current lifestyle.


What it is:

Gen Z purchases products to curate aesthetics that align with their ideal self-image, using them as tools to express and enhance their personal identity.

Insight:

Growing up with social media has driven Gen Z to develop distinct aesthetics that reflect their cultural identity and set them apart from previous generations. Gen Z is willing to spend to join in on trendy “core” aesthetics. One popular aesthetic is “gorpcore”, which is when outerwear from brands like Patagonia, Arc’teryx, and Salomon are styled and worn as streetwear. Gen Z’s obsession with “cores” has driven over 1 billion views on aesthetic trend YouTube videos. Aesthetics aren’t just for fashion – food, beverage, and beauty brands are leaning into bold, bright aesthetics, social media appeal, and convenience to grab Gen Z’s interest.

Brand doing it right:

Glossier, celebrated for its minimalist beauty products, captivates Gen Z with its sleek, pastel packaging and emphasis on natural, dewy finishes that enhance everyday looks. The brand’s effortlessly chic aesthetic aligns perfectly with Gen Z’s preference for understated beauty. Its strong online presence and community-driven marketing make it easy for Gen Z to connect with and purchase its products, reinforcing the brand’s commitment to style and authenticity.


What it is:

Private label brands are taking off, connecting with Gen Z through “dupes” and resonant value propositions.

Insight:

Gen Z struggles with the realities of being financially independent in a world where household finances are more challenging than ever. They look for ways to be smart savers wherever possible. “Dupe” culture makes knock-offs permissible and even celebrated, evidenced by the 3.7B+ views of #dupe videos on TikTok. Private Label is praised by Gen Z for its “CPG dupes” with 64% of Gen Z always/frequently buying store brands. In the era of “dupes”, name brands need to be even more creative and diligent about communicating their value proposition to Gen Z since a brand name doesn’t always carry the same cred it once did.

Brand doing it right:

Walmart’s Great Value Chicken Dipping Sauce is considered a good dupe for Chick-fil-A Sauce, closely matching its sweet and tangy flavor. It’s more affordable, widely available in Walmart stores, and offers a similar taste experience for those who don’t have easy access to Chick-fil-A.


What it is:

Gen Z is increasingly aware of environmental issues and the impact associated with product consumption, but the convenience and affordability of consumer products continue to drive their use.

Insight:

Gen Z’s commitment to sustainability at times conflicts with their purchase behavior as they weigh the cost of products and struggle with ‘green’ claims made by brands. While 91% want to buy sustainable products, only 39% are willing to pay more for them. High living costs, climate frustration, and conflicting messages undermine their commitment to products deemed better for people and the planet. This struggle is evident in the projected 37% increase in per capita plastic waste by 2060.

Brand example:

The Stanley Cup tumbler has become a popular alternative to plastic water bottles. However the tumbler is made from plastic and other non-recyclable materials, and its production is resource intensive. Marketing it as a better alternative to single use options obscures the negative impact of limited recyclability, excessive packaging, and lack of durability.


Conclusion:

These Gen Z trends reveal a generation deeply influenced by technology, social awareness, and a desire for authentic, personalized experiences. In summary, brands that recognize and cater to these preferences will be well-positioned to engage and capture the loyalty of this influential generation.

1. Unlock Gen Z’s shopping potential by meeting them where they are

Gen Z’s shopping habits are shaped by their extensive screen time and gaming interests, leading them to favor interactive shopping experiences digitally and IRL. At the same time, social media platforms like TikTok and Instagram have become integral to their shopping practices, serving as primary channels for product discovery and purchase. Brands can effectively engage Gen Z by integrating gaming elements into their retail strategies and leveraging social commerce to create engaging omnichannel shopping experiences.

How will your brand leverage gaming elements and social media platforms captivate and engage Gen Z?

2. Align brands and communication with Gen Z’s unique needs and concerns

Gen Z is drawn to nostalgia and curated aesthetics, finding comfort in retro designs and expressing their ideal self-image through bold, trendy products. Influenced by social media, they invest in items that align with their personal identity. However, their strong environmental awareness conflicts with the realities of consumable products. Brands must navigate this complexity by integrating nostalgic and aesthetic appeal into their offerings while addressing the balance between sustainability and practicality.

Which past trends do you see making a comeback, and how will your brand jump on them?

3. Offer unique value to stand out in a sea of “dupes”

To capture Gen Z in a market where private label is winning, brands must emphasize authenticity, shared values, and strong digital engagement. Despite being price-conscious, Gen Z will spend more on name brands that offer compelling value, such as higher quality, ethical practices, and exclusivity. Effective use of social media and influencer partnerships, along with unique and personalized experiences, can set a brand apart and build loyalty by aligning with Gen Z’s desire for individuality and meaningful connections.

How will your brand stay ahead and leverage the “dupe” trend in response to the growing consumer preference for private label products?


Ready to connect with Gen Z consumers? Let’s get in touch, we have more insights to share on each of the trends above! Reach out to us at info@seuratgroup.com to discuss winning strategies to drive success with the next generation of consumers.

New Vocabulary Words:

1. No Cap:
Meaning: No lie, for real, genuinely.
Example: “I’m telling you, this game is the best, no cap.”
Origin: Originates from hip-hop culture, where “capping” means lying.

2. Flex:
Meaning: To show off or brag.
Example: “He’s always trying to flex his new car.”
Origin: Derived from bodybuilding and fitness culture, showing off muscles.

3. Simp:
Meaning: Someone who does too much for a person they like.
Example: “He’s such a simp for buying her all those gifts.”
Origin: Initially derogatory, it has become more mainstream.

4. Yeet:
Meaning: To throw something with force; also used as an exclamation of excitement.
Example: “He just yeeted that ball across the field!”
Origin: Became popular through Vine and TikTok videos.

5. Bet:
Meaning: An affirmation, agreement, or approval.
Example: “Want to hang out later?” “Bet!”
Origin: Common in African American Vernacular English (AAVE), widely adopted in mainstream culture.

6. Slaps:
Meaning: Really good, especially in reference to music.
Example: “This new song slaps!”
Origin: Refers to the percussive quality of music that’s hard-hitting.

7. Finsta:
Meaning: Fake Instagram account, typically used to post more personal content.
Example: “I only post those pictures on my finsta.”
Origin: A portmanteau of “fake” and “Instagram.”

8. Ghosting:
Meaning: Suddenly cutting off all communication with someone without explanation.
Example: “He ghosted me after our third date.”
Origin: Popularized with the rise of online dating and texting.

9. Glow Up:
Meaning: A significant improvement in appearance, health, or style.
Example: “She had a major glow up over the summer.”
Origin: Derived from “grow up,” but focusing on physical or lifestyle changes.

10. Stan:
Meaning: An obsessive fan.
Example: “I’m a total stan for this band.”
Origin: From Eminem’s song “Stan,” which tells the story of an obsessed fan.

11. Fam:
Meaning: Close friends or family.
Example: “What’s up, fam?”
Origin: Shortened form of “family.”

12. Low-key/High-key:
Meaning: Low-key means somewhat or secretly; high-key means very or openly.
Example: “I low-key love this song” / “I high-key need a vacation.”
Origin: Terms adapted from musical terminology.

13. Mood:
Meaning: Used to express that something is relatable.
Example: “That cat napping is such a mood.”
Origin: Gained popularity on social media platforms like Twitter.

14. Tea:
Meaning: Gossip or news.
Example: “Spill the tea!”
Origin: Derived from “T” in drag culture, meaning truth.

15. Salty:
Meaning: Bitter or upset.
Example: “She was salty about losing the game.”
Origin: Slang that has been popularized through social media.

16. Woke:
Meaning: Socially aware and attentive to issues of social justice.
Example: “Stay woke about what’s happening in the world.”
Origin: AAVE, has entered mainstream usage.

17. Rizz
Meaning: Shorthand for charisma, used when someone has a charming or magnetic personality
Example: “He’s got serious rizz.”
Origin: Became popular through social media platforms like TikTok and YouTube.

The 7 Wonders of College Dining

The 7 Wonders of College Dining

The 7 Wonders of College Dining

Understanding Gen Z dining trends to drive growth in retail

Gen Z consumers are entering peak college years, and while this demographic already has tremendous purchasing power, that will continue to grow as they gain independence and enter the workforce. As a result, meeting their needs has become essential for brands across categories. This generation is also extremely focused on education, with 84% of Gen Z consumers planning to go to college. As the first time many of them gain significant independence and make purchasing decisions without having to work through their parents, college becomes an effective window to understand what truly matters to Gen Z consumers and what they will prioritize as they enter adulthood.

While these students are busy learning about the 7 wonders of the world in their gen. ed. classes, we’ve studied their food trends to identify the 7 wonders of college dining.

Prevalence in On Campus Dining

Feed Me Now!
Insight

Evolving schedules, always on-snacking, and a culture used to immediate gratification means young people expect to get exactly what they want, when they want it! That means students expect good food quickly any time hunger hits (24/7).

Provocation

Fresh, high-quality, fast food 24/7 is a key need. Improving accessibility of food for anytime eating (without a lot of cooking) will be the expectation for this generation – How can we provide extreme convenience in the grocery store to allow retail to deliver and outcompete foodservice?

On Campus Examples
Universities are moving towards autonomous 24/7 markets and dining halls

Dining hall food delivery robots have surged on campuses

Grubhub has integrated with campus dining plans while DoorDash targets students

Premium vending delivers fresh food at all hours

Eco Eats
Insight

The environment is Gen Z’s number 1 concern, and they prioritize companies that authentically align with their values. From sourcing locally grown produce to embracing plant-based alternatives, they advocate for eco-friendly practices in food production, and are willing to pay a premium to do so.

Provocation

This generation’s commitment to environmental stewardship underscores the need for brands to align with these values. Embracing sustainability will help brands stay relevant!

On Campus Examples
Local sourcing is a key selling point for campus food service companies

Universities increasingly label environmental footprint of food

Students demand sustainable & reusable to-go dining containers

Default Diets
Insight

Gen Z consumers are much more likely to have dietary restrictions or to follow specific diets than the total population: 66% of Gen Z consumers follow a specific eating pattern or diet, vs 63% of millennials, 50% of Gen X and 41% of Boomers, and 10% of students on meal plans having food allergies vs 6% of the adult population. These consumers grew up with food technology addressing these needs (e.g. plant-based meat) and they’re increasingly expecting options that allow them to follow their diets without sacrificing quality.

Provocation

As dietary needs and restrictions become more and more common among Gen Z (Gluten free, plant based, allergens) there is an opportunity to delight consumers with higher quality options meeting these needs. Brands that have been able to address these needs are thriving (e.g. Siete, Made Good, Nature’s Bakery). How can companies deliver dietary needs without sacrifice in retail?

On Campus Examples
Smith College features an entirely gluten free dining hall

Foodservice companies increasingly make commit-ments around plant-based

Foodservice companies launch food stations entirely free of top 8 allergens

Craving Customization
Insight

Gen-Z has a desire for unique custom offers. Whether driven by dietary restrictions, a desire for greater variety, or a focus on individuality, consumers want and expect their food to be customized to their personal taste.

Provocation

Customization is becoming the norm – brands offering personalized products (Prose, Function of Beauty, Gainful Protein, etc.) are disrupting their respective categories. Where else can this be applied?

On Campus Examples
DIY stations are popular on campus

Colleges are increasingly using student feedback to influence dining plans

Students are looking for increased custom options in college dining

Global Grub
Insight

As the US becomes increasingly multicultural, Gen-Z is increasingly eager for ethnic flavors and cuisines. Multicultural students expect offerings that represent their cultures, and most students expect offerings that expand their palates.

Provocation

Authentically delivering flavors and products from other cultures is a massive opportunity, especially for cultures that are less well represented today. How can we bring international cuisine beyond the basics of Chinese, Indian and Mexican to life at retail?

On Campus Examples
Foodservice companies launch specific stations highlighting global cuisines

Boston College launched a program to bring international recipes across stations

Foodservice companies partner with chefs like Grace Ramirez to serve high quality international cuisine

Creating Community
Insight

In the post-covid world, students see food as a key element of building community. This is true both with their immediate on-campus community (they spend long hours socializing in dining halls), and with the broader local community (they prioritize eating at local restaurants).

Provocation

Gen Z consumers look to food to help them connect both with their social circles as well as with their local communities. How can companies better deliver a sense of community in retail through messaging or targeted innovation?

On Campus Examples
Aramark developed Local Restaurant Row which brings nearby eateries to campus

Oberlin let students eat at local restaurants using a meal swipe once a week

St. Olaf introduced a dining space with programming like trivia run by students

Cal Poly focused the design of their dining halls around creating student connections

Socially Savvy
Insight

Gen Z are digital natives who have grown up with unrestricted access to social media and rely on technology heavily in food. Influencers and celebrities have a big impact on their eating behavior, to the point where Gen Z often learns to cook through social media, and regularly try viral recipes.

Provocation

Social media and food are intertwined for Gen Z at an unprecedented level. Leveraging virality of recipes to resonate with Gen Z through LTOs and comms, and partnering with key influencers for product innovation are key opportunities, but how else might companies leverage the role of social media in Gen Z’s culinary development?

On Campus Examples
Colleges leverage ghost kitchens with Gen Z celebrities like Mr. Beast

QSR’s target Gen Z with influencer sponsored menu items (e.g., Renee Rapp x Sweetgreen)

Foodservice companies leverage food celebrities and equities to drive excitement

In summary, Gen Z college students want diverse multicultural and local foods to build community, both customized to their needs and available any time. Companies that can deliver on these needs in retail will be set up for success as this generation moves into the workforce and becomes a significant driving force in the economy.

As always, we want to hear from you! If you want any more information on any of our white papers, or have questions on how your brand can better address these needs, please reach out at info@seuratgroup.com.

Top 10 Trends from Expo West 2024

Top 10 Trends from Expo West 2024

Top 10 Trends from Expo West 2024

Late last week, along with roughly 70,000 other consumer goods fanatics, Seurat descended on the city of Anaheim, CA for the Super Bowl of CPG – Expo West. Sensible shoes were out in full force, as were more than 3,300 exhibitors ranging from functional cookie dough to probiotic baby wipes, Vietnamese coffee and plant-based everything.

Expo is always an inspiring (though exhausting) experience, and the buzz was electrifying. And yet, not all trends are poised to emerge from the Erewhon / DTC “bubble” and mainstream at the same rate (we’re looking at you, regeneratively farmed kombucha gummies). It would be impossible to pay tribute to all the fearless founders and hip challenger brands we met, so we’ve settled for a top 10. Without further ado, we present our top Expo trends, qualitatively organized from ‘still emerging’ to ‘ready to scale.’

#10 Cognitive Craze

If the number of “brain-boosting” products on display is any indication, cognitive function is next up in the health industry’s obsession with self-improvement. A slew of brands from supplements to snacks & beverages are promising “brain power on demand” through focus-enhancing nootropics – perhaps no surprise as 1 in 3 consumers look for ways to augment cognition. These products remain niche for now due to low distribution and premium price point. But given consumers’ inclination to start the day at their best, there’s certainly potential for greater adoption.

#9 Eggcellent Innovation

Eggs were a bifurcating trend this year. At one extreme, brands were leaning into eggs as the OG natural, protein-dense superfood and proliferating into different form factors like wraps and chips – ostensibly improving the incumbent’s nutritionals. On the other extreme, several brands were leaning out, hatching plant-based alternatives as close as possible to the real thing. Likely explanations here range from the rise of plant-based to animal welfare, food sensitivity concerns and the TikTokers famous #eggick, a sudden (viral at 4.3MM views) repulsion to eggs. The outpouring of brands offering ick-free eggs made from peas, lentils, chickpeas & the likes is certainly no yolk, but the scalability of these substitutes remains to be seen.

#8 Reign of Regenerative

While only ~1 in 10 consumers are aware of regenerative agriculture, 60% of those who know it are extremely interested – suggesting one of the highest rates of search-to-purchase intent. Regenerative is the new wave of BFY, taking organic even further to be not just better for our planet, but truly restorative. With traditional meat coming back into fashion, consumers are increasingly seeking better, more socially acceptable ways to consume the products they love. (And thanks to kernza, you can finally help sequester carbon and improve the quality of our air, soil and water…all by drinking beer!)

#7 Happy Hormones

The last few years have seen a major shift in the discourse around women’s health: conversations around menstruation and sexual wellness have gone from cultural stigma to empowerment and pride. Based on what we saw at Expo, menopause and more general hormonal health support is the next wave in this revolution. Google searches for “Menopause,” “PCOS” and “hormonal acne” have nearly doubled in the past five years – perhaps no surprise as 80% of women in the US struggle with symptoms related to hormonal imbalances. Women’s History Month was the perfect backdrop for a host of emerging brands aiming to solve very real pain points in the name of womanhood.

#6 Taste of Beauty

‘You are what you eat,’ as the saying goes. And now, apparently, what you put in your body might replace what you put on it to achieve a healthy, balanced glow. Social media is rife with hacks to consume products in place of topical solutions to benefit one’s complexion. (#skindiet has 2.2M hits on TikTok as of this writing.) There’s significant upside if brands can drive daily consumption by positioning these consumables as another step in the ever-growing list of beauty & self-care routines.

#5 From K-Pop to K Food

During lockdown, consumers had extra time to explore new hobbies. Many elevated their baking skills with sourdough starter sets, while others invested in learning recipes from cuisines & cultures outside their own. The latter, coupled with a universal desire to travel, unlock unique experiences & connect with new cultures, has given rise to a host of ethnic brands aiming to make global flavors more accessible to the average home chef. This year Korean products especially appeared in the limelight, from umami snacks to gochujang condiments. Google searches for “H mart” have doubled since pre-lockdown, and we’re bullish on the continued emergence of accessible, globally inspired products – Korean and beyond.

#4 Low Stress, No Mess Meals

Until recently, the ready-to-heat meal solution set in mainstream grocery looked a lot like it did 20 years ago. But increasing expectations when it comes to quality, convenience & taste has given rise to a new wave of premium, health-forward solutions aimed at the roughly 2/3 of Americans who no longer regularly cook at home. As meal kit companies struggle, these products are poised to enter more kitchens, and with greater frequency. Price points remains an important hurdle to clear, but these low-stress, no-mess meals represent an attractive space with significant unrealized potential.

#3 Protein Beyond the Plate

The ubiquity of protein isn’t new to Expo, but the trend appears to have accelerated. Recent years have seen more consumers reducing animal protein consumption, spurring some to turn to beverages and salty snacks to supplement. Americans also fundamentally believe they’re protein-deficient, further fueled by the rise of GLP-1 drugs as these medications require a more protein-rich diet to make up for the impact on bone density and muscle mass. Protein isn’t going away anytime soon – and it’s likely to continue growing in meal-adjacent spaces across the consumable landscape.

#2 Energy Evolution

The energy drink category has a decades-old reputation as being artificial and loaded with sugar. Major brands like Celsius & Highball have changed the narrative, inviting new consumers into the space with cleaner labels & fewer ingredients. Emerging brands are taking this one step further, with “purely natural energy” claims, ingredients that are naturally high in caffeine and even alternative energy sources, from ginseng to green coffee beans. Americans’ thirst for mental & physical energy is effectively insatiable, and yet penetration of energy drinks is largely stagnant. That may be about to change as these brands continue to redefine expectations and products – complete with functional benefits from improved focus to elevated mood.

#1 Sensible Soda

“Healthy soda” is clearly having a moment. Poppi’s splashy Super Bowl commercial exposed millions of mainstream consumers to the idea of replacing their traditional soft drink with a healthier alternative. Manufacturers are taking notice, with more than 25+ better-for-you brands brands entering on the heels of Poppi and Olipop. Even the kombucha brands we met at Expo were changing their strategy and jumping on the bandwagon.Taste remains paramount, but these brands are also touting benefits like gut health and immunity. Things are about to get interesting!

Did you see something else we missed? Didn’t get to Expo and want the full scoop? Hit us up! As always, we welcome conversation. Reach out at info@seuratgroup.com.
2024 Challenger Brand Paper: Breaking Through Via Cultural Connectivity

2024 Challenger Brand Paper: Breaking Through Via Cultural Connectivity

2024 Challenger Brand Paper: Breaking Through Via Cultural Connectivity

Introduction

This year’s challenger brand paper highlights the role of cultural connectivity in building breakthrough brands. The U.S.
is becoming increasingly diverse (diversity index +11% over last decade, source), and we consequently see a rise in the importance of cultural sharing & connectivity. Brands able to harness cultural connectivity differentiate themselves and increase their mental availability. Creating cultural connectivity can come to life through democratizing traditional ingredients or recipes, headlining culturally relevant brand origin stories or missions, and engaging with consumers through broader messaging and specific social strategies. Excitingly, this connectivity is reciprocal in nature. As founders and brand builders look to share pieces of their backgrounds, consumers look to widen their world view, incorporate new experiences, and/or find a piece of home by engaging with and learning from brands with strong cultural heritages.

We’ve all seen the challenger brand landscape shift over the past several years: it’s become harder to break through and scale, capital is harder to come by, and exits / acquisition activity is less frequent. Those that have been able to break through often do so via the ability to authentically connect with consumers (and frequently, through cultural connectivity), hence our focus on the phenomenon in this year’s paper.

Cultural connectivity is a relevant driver of value creation across the consumer products landscape. Consumers are swarmed with an abundance of choice, searching for the best products that will permeate their everyday lives. Our paper highlights “breakthrough challenger brands” that have successfully mainstreamed on this thread of cultural connection – creating meaningful consumer share of mind and achieving over $100MM in sales. We also showcase our top emerging challenger brands that are poised for success via growing resonance, stemming from their ability to authentically leverage cultural ties and welcome consumers of all backgrounds.

Food & Beverage
Breakthrough Challengers

Siete

Highlighted by the Seurat challenger paper in 2019, Siete has quickly risen to breakthrough status in just a few short years. Inspired by the founders’ mission to adapt traditional recipes to allow family members on an autoimmune-friendly diet to partake in family meals, Siete strives to reinvent authentic Mexican cuisine with cleaner, healthier ingredients. Their overarching mission has enabled them to successfully expand into a wide swath of categories from tortillas, salsas, and seasoning to cookies. Every aspect of the Siete brand is inspired by the founders’ heritage — from ensuring that every item is approved by their grandmother, to the brand name, which represents the seven members of the Garza family. Since its founding in 2014, Siete has reached $400MM in revenue (2023) (Source).

Momofuku Goods

Momofuku Goods, an offshoot of the famed restaurant group, is bringing its restaurant’s culinary staples– from noodles to sauces– to home chefs. Momofuku’s 20-year heritage in the restaurant industry brings credibility to the line, which has grown a dedicated following worthy of breakthrough status. After research found that 80% of their social media followers didn’t live in cities containing Momofuku restaurants, the team was inspired to create products that gave more fans access to the brand’s recipes. Beyond the restaurant’s reputation for tasty, authentic dishes, the professional kitchen inspired labels on pack bring an elevated level of authenticity to the products, and further bring the restaurant experience home. Clearly, fans from all over are connecting with the brand — Momofuku passed $100MM in annual revenue in 2023, with over 50% derived from its CPG business (Source).

Topo Chico

Topo Chico is a standout example of how to break through in beverage via cultural connectivity. Inspired by the legend of the daughter of Aztec Emperor Moctezuma, the brand has successfully expanded its portfolio beyond the core mineral water to include Sabores, Margaritas, Agua frescas, and hard seltzer with Mexican inspired flavors like guava. Topo Chico leverages the message of ‘follow your thirst for discovery’ to celebrate its ability to draw consumers to new drink types and flavors. Topo Chico as a brand has tremendous badge value, transforming sparkling water from something to be enjoyed to a signifier of exploration and the appreciation for products with a rich history. The brand was acquired by Coca-Cola and surpassed $200MM in sales earlier this decade. (Source)

Emerging Challengers

Bachan’s

You may have noticed Bachan’s unique red squeeze bottle amongst a sea of American-style barbecue sauces. The Japanese barbecue’s unique & delicious flavor is a product of the founders’ painstaking commitment to authenticity. The sauce starts with a recipe that has been passed down for generations and is packaged using a cold-fill technique, which allows the sauce to taste just like the version made fresh in the family kitchen, bringing authentic, tangy flavors from their kitchen to yours. Bachan’s eclipsed $30MM in annual revenue, and recently became the top selling shelf stable barbecue sauce in the natural category (Source).

Yolélé Foods

Yolélé Foods is on a mission to introduce a revolutionary West African ancient grain, Fonio, to the North American market. While Fonio boasts a superior nutritionalprofile to rice or quinoa, it is relatively unknown in America – until now. Yolélé’s convenient preparation and variety of flavors are a delightful invitation for consumers to try the new grain and bring it into their rotation. Ultimately, the brand also hopes to improve economic prosperity for West Africa by increasing demand for Fonio and reinvesting profits back into local communities.

Omsom

With home cooks and food critics alike praising Omsom’s products for their “game changing” sauces, this brand is democratizing access to authentic Asian flavor. Omsom was created by two sisters who were born to Vietnamese immigrants. Their vision was to create products that bring loud & proud Asian flavors to meals any day of the week. Consumers are delighted to be able enjoy the sauces & noodles with ease, and without cultural compromise. The brand leverages social media as a key storytelling mechanism, engaging with their consumers, and speaking on current events. Omsom made its grocery debut in Whole Foods last year. (Source 1, Source 2)

Sanzo

Filipino-American founded Sanzo celebrates its sparkling waters as a way to explore Asian flavors, touting themselves the first Asian-inspired sparkling water made with real fruit and no added sugar. In unique flavors like lychee and calamansi, the brand offers a fresh take on the category. A mission to “bridge cultures by connecting people to authentic flavors” whether these flavors are a “taste of home or a source of discovery” is core to the brand, promoting the idea of wanting to connect over and share culture. (Source)

Bawi

Inspired by the cofounders’ upbringings in Monterrey, Mexico and Austin, TX, Bawi is modernizing the traditional Mexican aqua fresca through a sparkling take that’s nostalgic and new at the same time. Cited as a best new product of 2022 from BevNet, the brand has earned distribution in over 600 stores nationally from Sprouts & Safeway to a myriad of specialty stores. (Source 1, Source 2)

Personal Care / Beauty
Breakthrough Challengers

Briogeo

Built for all hair types and textures, Briogeo is a black-owned haircare brand that has disrupted the industry. As part of the haircare renaissance that hair products aren’t one size fits all, Briogeo helps consumers find the right products for their specific hair needs and goals. Founded on values of love, invention, and inclusivity, Briogeo was created as a means to spread joy and happiness – an ode to CEO + Founder Nancy Twine’s core memories of time spent creating beauty treatments in the kitchen with her mother. The company has succeeded in inviting in a diverse cohort of consumers and generated over $100 million in revenue in 2022. (Source)

Dr. Jart+

Korean skincare brand Dr. Jart+ has broken through the industry by bringing renowned Korean ingredients and skincare practices into the mainstream. Consumers look to K-beauty for skincare done right, and Dr. Jart+ specifically for the proprietary ingredient complexes they’ve developed in the skin-science labs. Consumers have bought into their high-performance derma care earning the brand $500 million in sales in 2019. (Source)

Emerging Challengers

Ceremonia

Ceremonia is a bright spot in hair care, celebrating LatinX heritage through clean hair care solutions made from ingredients popular in Latin American culture. Born from the desire to make hair care more tailored to and accessible to Hispanic consumers – the largest minority in the US – Ceremonia empowers consumers who are rarely centered in this category. In 2022, the company produced $20 million in revenue and became the first Latinx-owned brand fully available in-stores & online at Sephora. (Source 1, Source 2)

Korres

Greek skincare brand Korres harnesses the powerful bounty of Greek biodiversity into personal care products. Driven by the desire to spread the power of rich endemic resources, Korres features ingredients like Greek olive, black pine, and Santorini Grape in their skin & body care products. While larger in Greece with $97 million in sales in 2021, the brand is growing in the US (~$30 million in sales in 2022) as consumers latch onto the magic of ingredients packaged into Korres’ products. (Source)

Eadem

Vegan skincare company Eadem has identified a gap in skincare products designed for darker skin tones. Messaged as skincare “finally made for us,” Eadem puts women of color at the forefront with the goal of bringing skincare solutions to those who have been excluded for far too long, making the industry a more inclusive space. While the company’s revenue is undisclosed, the brand (and especially it’s Milk Marvel Dark Spot Serum) is blowing up online because of its use of science backed and heritage aligned ingredients designed for melanin-rich skin. (Source)

Nopalera

Nopalera is a Chicana-owned clean personal care brand rooted in the cactus – a symbol of Mexican heritage that also has many health benefits. The brand’s star ingredient is the nopal plant, better known as the prickly pear cactus, which is incredibly resilient and thus a representation of Mexican resilience. By bringing this native Mexican powerhouse to the limelight, Nopalera works to spotlight Mexican culture and share it with the world. (Source)

Conclusion
CPG brands leveraging cultural connectivity become part of everyday life, teaching consumers a bit about the world, or making them feel at home.

Our top emerging challenger brands authentically share their cultures as key to their mission and communications, all while encouraging mainstream trial and adoption through accessible entry and education, making their products tailored to their culture, but enjoyable to all. This strategy of cultural sharing creates genuine connections with consumers, allowing those of the same cultures to see more true representation at shelf, and allowing consumers of all backgrounds to learn about, and celebrate new cultures in their everyday lives.

As always, we want to hear from you! If you’d like more information on any of our challenger brand studies, or want to share a brand of your own, please reach out at info@seuratgroup.com.

Driving Portfolio Value via Demand Maps

Driving Portfolio Value via Demand Maps

Driving Portfolio Value via Demand Maps

A strong brand portfolio is the engine of value creation

The value of a consumer goods or services company is intrinsically linked to the value of its brand or portfolio. Brand equity is rooted in how meaningful, different, trusted, and salient the brand is perceived to be by consumers. Companies with a strong brand portfolio significantly and consistently outperform the market.

A recent McKinsey study confirms this phenomenon: the world’s 40 strongest brands returned 96% more to shareholders than investment in a global market index.

Powerful brands significantly outperform the market.

Total return to shareholders, Index

While it’s clear brand value drives economic value, building a valuable brand is easier said than done, and the market is cluttered with failed or under-performing brands. In our collective experience working with hundreds of brands, we’ve found the number one determinant of success is firmly placing the consumer at the center of all brand strategy decisions. To build a strong portfolio companies must follow a structured approach that details consumer demand drivers, the role of their brands in consumers’ lives and potential for change moving forward.

Demand Maps
A critical tool for manufacturers to position individual brands and their portfolio is a demand map that captures consumer insight on key drivers of choice.

Definition:
Demand maps provide a quantified, holistic understanding of how consumers make choices. They capture who, why and how consumers engage with brands, and predict how consumption will evolve over time.

How your brands could benefit:
Demand maps drive portfolio strategy on where to play, how to action and how to win in addition to informing forward-looking innovation and acquisition decisions.

How they’re developed:
Demand maps blend primary consumer research with category-wide market data to create a multi-dimensional understanding of the space and surfaces which benefits, attributes and brand levers create the greatest sales impact (and the highest growth potential).

How to use a Demand Map
It’s important to keep in mind that demand maps vary by category given consumer drivers are often very different.

At a high-level, demand maps can be defined by occasions (the when, where, and with whom), the needs / motivations that those occasions necessitate (the why), along with the consumer cohort most likely to make a choice (the who).

Demand maps enable a brand portfolio to maximize value creation opportunities. This in turn facilitates strategic alignment across your organization.

Below are our Portfolio Management Principles to leverage your Demand Map effectively:

Prioritize brand lanes based on attractiveness (e.g. profit potential), brand right to win (e.g. brand’s ability to deliver on key needs), marketplace coverage (e.g. available consumption), and execution potential (e.g. brands ability to commercialize).

Evaluate the ability for brands within the portfolio to extend across the demand map. Considerations include:

  • Covering more spaces drives penetration but risks lower salience / relevance (Brand A)
  • Anchoring in one space drives loyalty & distinctiveness at the risk of reduced scale (Brand B)
  • Creating clear demand lanes for each brand

Cover demand spaces where company brands can’t stretch and competitors lack a right to play / win through innovation, acquisition or licensing strategies

How Demand Maps come to life
A legacy brand in the portable protein space came to Seurat after a new player entered the category that was able to tap into an entirely new consumer segment (Gen Z and Millennial women).

Seurat created a demand map to understand the category and unlock pockets of growth for our client to regain share. Our research unearthed that consumer needs for protein are largely driven by a combination of occasion and need. The category exists along two key occasion-based dimensions: snack vs. meal part and solo vs. social consumption. We then pulled apart dimensions further to uncover four distinct drivers (flavor, health, convenience and value) that mapped across 8 unique demand spaces.
After identifying key demand spaces within the category, brands can strategically position to capture new spaces.

Our work quickly revealed a sizable, underserved demand space: mom-approved snacks. By maintaining adherence to a handful of core portfolio management principles, our client was able to regain share by utilizing the demand map’s forward-looking insight to optimize their portfolio.

Ultimately, the demand space insights informed activation platforms, providing the client with a roadmap for how to win with both existing brands as well as identify high-returning innovation opportunities.

What Next
Are you looking to optimize your portfolio strategy?

Are you looking to solidify positioning for key brands? Could your organization benefit from demand map insights? We welcome conversation at info@seuratgroup.com