Analyst Buzz

Thinking Through Semi-Durable Drinkware Options; Innovations & Potential.

Freedonia Industry Studies — Wed, 24 Apr 2024 04:00:00 GMT

New plastic-free clay cups aim to reduce waste

From Pets to Plants to Pet Rocks… Consumers Are Seeking Connection

Freedonia Industry Studies — Mon, 18 Mar 2024 04:00:00 GMT

Did you hear about the pet rock craze in South Korea? People are buying rocks, naming them, decorating them – the whole nine yards!

No kidding? I remember those from the 70s… I guess everything comes back again at some point.

Australia's first e-bike rebates go live in Tasmania

Gleb Mytko — Fri, 09 Feb 2024 05:00:00 GMT

https://bicyclenetwork.com.au/newsroom/2023/11/23/tasmania-helps-more-riders-on-to-e-bikes-2/

Australia's first e-bike rebates go live in Tasmania

Another Roll-Up Phase in Progress in the Building & Grounds Service Sector

Freedonia Industry Studies — Tue, 16 Jan 2024 05:00:00 GMT

HCI Equity Partners is Up to Four Companies for its New HCI Lawn Care Treatment Platform

Volvo Construction Equipment & CRH Signed a Memorandum of Understanding To Help Decarbonize Construction

Freedonia Industry Studies — Mon, 20 Nov 2023 05:00:00 GMT

https://www.crh.com/media/news-insights/crh-and-volvo-group-agree-partnership-to-accelerate-decarbonisation

How much of an impact will the new cooperative agreement have?

The partnerships is likely to produce significant results because both companies bring a lot to the table. Volvo is a top manufacturer of heavy equipment, invests heavily in technological innovation, and is a leader in terms of heavy equipment electrification. For its part, CRH is among the world’s largest providers of building materials solutions. It is active in nearly 30 countries around the world. The partnership will leverage the immense financial resources and R&D capabilities of Volvo and CRH, and build on the independent environmental initiatives of both companies.

What kind of real-world changes can we expect to see in the next 5 to 10 years?

Volvo and CRH plan to accelerate the production and deployment of electric and hybrid construction equipment globally; expand the charging station networks of numerous countries; and invest in renewable energy. Both companies have set ambitious net zero targets and are likely to make significant progress in the next decade. These targets were designed to align with the aims of the Paris Agreement,

It appears that Volvo and CRH are likely to benefit financially from the new cooperative agreement long-term. Both will also likely strengthen their position in key markets as well. I can see other industry participants forming similar partnerships in the future.

A Sustainable Economy - It Takes a Village

Freedonia Industry Studies — Fri, 17 Nov 2023 05:00:00 GMT

It's concerning that despite the public emphasis on sustainability, the recycling rates are not where they should be.

It's a complex issue. “It takes a village” to make a circular economy so maybe the industry is due for more collaboration… from packaged goods companies to packaging companies to waste processors to municipalities.

Without changes in the waste collection and processing infrastructure, best opportunities exist for packaging that aligns with existing recycling infrastructure.

We need to know that we’re talking about the same things though. So we have accurate and consistent understanding about progress and areas for improvement.

Right, like exactly how is “access to recycling” defined? In my neighborhood, aseptic cartons are not collected (that darn internal layer) even with a really expansive curbside collection service.

I’d quibble with calling it “access” if you have to drive 50 miles or pay them to take your recyclables, like with pouches and toothpaste tubes.

So would most consumers. That’s why there are still so many disputes over accurate labeling.

Some would quibble with calling store drop off or a central drop-off collection point as “access” but at least that’s a start. It’s also perhaps more likely to be a clean collection than a single-stream curbside collection.

Still, it's not just about recycling but creating a system where all materials are reused efficiently. Like we’ve said before – there is no silver bullet to solve the problem and there are no materials that are “good” or “bad”… just ones that solve the problem best for a particular application.

Why Offer Mustard Skittles, Mac & Cheese Ice Cream, Caviar & Pringles? To catch younger consumers, of course!

Freedonia Industry Studies — Tue, 31 Oct 2023 04:00:00 GMT

https://www.cnbc.com/2023/10/27/why-food-giants-think-youll-eat-a-mustard-skittle-and-caviar-pringle.html

Oh man, the specific examples of food partnerships confound me a bit. Pringles and caviar, really?

These partnerships may sound strange, but I think there are clear reasons that food companies are making such moves. They are trying to target young people with something new.

Especially if it is visually interesting and Instagrammable or if it can lead to a hot take in a TikTok!

Our September-October survey drives home why food giants would be more willing to take risks to target Generation Z and younger Millennials. These consumers are more open to influences in trying new foods compared to other age groups.

Members of Generation Z are more likely to say that they are strongly impacted by social media posts, influencer/blogger buzz, and general novelty. Strange partnerships like this get more attention than obvious matchups, particularly with Gen Z.

Gen Z is also an up-and-coming market. Consumers in this generation are increasing their food spending each year as they age (and as their adult population grows). Food trends are being driven by them more, and this will continue in the future.

As with Millennials, the experience factor is really important to many of these young consumers. Is the product fun, exciting, unique?

Of course, price and taste is still king. If they can’t afford it or if they don’t like it (and honestly, a surprising or shocked reaction is sometimes the point) they won’t return to buy more of the core products.

And that’s ultimately the goal, right? Not to get people to buy more of that particular limited time offering combo… but to see the brands in a new light, to give them a reason to buy more often or explore more items in the brand line, and to open core customers to a related product.

For more information see:

Eurobike to Bring E-bikes to Turkey & Indonesia

Freedonia Industry Studies — Fri, 27 Oct 2023 04:00:00 GMT

In October 2023, Eurobike – a large conference for bicycle and e-bike manufacturers and stakeholders from around the world – announced that it would hold Eurobike Istanbul and Asiabike Jakarta in 2024. These industry events will increase consumer awareness of e-bikes in Turkey and Indonesia, both of which had e-bike sales of less than 50,000 units sold in 2022. Eurobike Istanbul and Asiabike Jakarta will also promote brand recognition, shape consumer preferences and expectations, and highlight how businesses can use e-bikes. The conference will also connect manufacturers, industry groups and governments in Turkey and Indonesia.

Post Acquires Pet Food Company for $235M

Freedonia Industry Studies — Thu, 12 Oct 2023 04:00:00 GMT

https://www.powderbulksolids.com/food-beverage/post-acquires-pet-food-company-235-million?ADTRK=InformaMarkets&utm_source=eloqua&utm_medium=email&utm_campaign=15_NL_PBS_Weekly_Edit_Sub_20231011&sp_cid=16229&utm_content=15_NL_PBS_Weekly_Edit_Sub_20231011&sp_aid=30893&sp_rid=1513193&sp_eh=48a9aaf32b096de8ead29821922f497f3e91f5a4a635cf3971a8d0d4153c19ef

Post is really building momentum in the pet market. Its acquisition of most of JM Smucker’s pet food portfolio earlier this year pretty much made it an instant major player, and with Perfection Pet Foods, it gets itself a ready-made private label business and additional manufacturing capacity.

Walmart Testing Expansions in On-Site Pet Services & Additional Pet E-Commerce Options

Freedonia Industry Studies — Mon, 25 Sep 2023 04:00:00 GMT

https://www.cnbc.com/2023/09/20/walmart-opens-pet-center-with-veterinary-care-and-grooming.html

Yes, this is huge. They had been contracting with PetIQ for vet services for several years now, and with Rover for pet sitting/walking, but this is their first real entry into the grooming category. With this move, if they expand it, they are really making a play for the pet specialty "one-stop shop" market (with the added bonus that pet owners can pick up a loaf of bread and a new tv at the same time)

…and an online pet pharmacy... and testing subscription deliveries... making a play for Chewy too?

Yep, the pharmacy is interesting. Walmart has had an online pet pharmacy for while so it will be interesting to see the difference with their “reinvented” pharmacy.

“Based on our pilot testing, the pet category has been where customers have most eagerly embraced this convenience,” Walmart said. <-- well yeah, because pets eat and use mostly the same things over and over again, mostly at the same rate... and some of those packages are heavy!

Very true! Over 70% of Chewy's business is from autoship

Seems like locking in delivery is increasingly important if people are worried about not being able to find their brand in stores. My sister has been annoyed about hopping brands because she has been unable to find her typical cat litter!

Uh oh, that's never a good thing

Chewy does a great job though... can a huge company like Walmart match the personalization and care of the customer service Chewy has become known for? Or will people not care enough for the service and the convenience will win?

Right now price points are a big deal. The premiumization trend has gotten out of control and people are starting to push back, switching to lower priced options. Walmart definitely has an edge along those lines, but with pets you never know. People spend on things for their pets that they don't spend on for themselves

That's true... as a cat owner, I know that I will pay just about anything for a cat food she will reliably eat and will not give her belly trouble!