Trends, risks and opportunities Creating possibilities Key developments impact consumer behaviour and preferences which in turn presents new risks and opportunities for us. A changing world over the next five years Understanding key megatrends and associated risks, helps us find new opportunities and shape our business model to find new places to win. We have identified four key megatrends over the next five years that continue to bring new opportunities to our business: Growing consumer base The world’s population is expected to continue its rapid growth, with the majority in Asia and Africa. The elderly and the Chinese are expected to account for about half of global consumption growth in 2015 to 2030, leading to new product innovation to meet their needs. Local brands will be even more relevant to – and trusted by – consumers, which will bring strong growth for local and regional companies in emerging markets. Living longer and more responsibly Consumers are seeking products that support their physical and mental health and are demanding greater transparency of labels. Opportunities are found in key health, nutrition and wellbeing trends that are driving consumer behaviour. Consumers are also looking for products that provide essential hygiene protection, allow them to look younger for longer, and the current coronavirus has sharpened the criticality of hygiene products to protect people’s health. Sustainability is of high concern As the climate crisis looms and social inequalities rise, consumers are more responsible and engaged and they support businesses they believe act responsibly and address these societal challenges. They are looking for products that are produced in a way that does not cause harm to the environment. Impact of COVID-19 The expansion of e-commerce is changing the shape of retail, and is growing faster than expected as a result of the pandemic. Consumers’ health and wellbeing has risen even more in importance and they are looking for solutions that enhance and Megatrends • Asia and Africa leading the way • Co nsumers are focussing on health and transparency • Consumers will buy more consciously • Responsible businesses will create a positive impact on society and the planet • Consumers will buy more online and increase spending on self-care • Localisation will be even more important Consumer base is growing Living longer and more consciously Sustainability is of high concern COVID-19: E-commerce, self-care and localisation gain importance IMPACT TREND Givaudan – 2021 Integrated Annual Report 28 Strategic value creation Tr ends, risks and opportunities