With an estimated $535 extra spent on gasoline this past year, coupled with rising CPG product prices due in large part to rising fuel costs, U.S. households have felt their budgets strain.
Yet, as detailed throughout this report, and consistent with findings from the IRI September 2005 gas price assessment, the CPG industry does not appear to have been negatively impacted. In fact, total industry sales actually appear to have benefited as consumers shifted spending from luxuries, such as dining out and entertainment.
What did change, however, is the way in which consumers shop. Across income segments and across channels, consumers significantly reduced shopping trips, accelerating a longer-term trend.
This assessment provides CPG manufacturers and retailers with insights required to see and act upon new opportunities and risks related to gas price cycles.