IRI Reviews 2009 CPG Industry and Highlights Key Trends That Will Continue in 2010
CHICAGO, March 2, 2010 – Though the economy has taken some
steps toward recovery, 2009 was a difficult year for U.S. consumers.
Financial, housing and employment markets are in less-than-favorable
condition, and consumers are justifiably concerned. IRI has been
analyzing the economic downturn and its effects on consumer shopping
and consumption behavior during the last two years and identifies
significant and long-lasting trends in its latest report, “Times & Trends: 2009 CPG Year in Review.”
IRI research notes the following five trends that will continue to
impact the consumer packaged goods (CPG) industry moving forward:
- Consumers were jolted by the speed and severity with
which the recession struck. They overcompensated with draconian
strategies to cut CPG spending to the bone—even to the point of
planting gardens to grow their own food. While the majority of shoppers
have at least partly reverted to their “normal” shopping patterns, many
will continue at least some of the frugal habits they acquired long
after the recession passes.
- The return of energy prices,
including gasoline, to more normal levels enabled shoppers to recover
sufficient income to travel within a wider geographic area to find the
best deals. In 2009, trip behavior rebounded from a multi-year slide.
Today, more than half of consumers are shopping 10 or more retailers to
maximize the return on their CPG investment.
- More than
40 of the top 100 CPG categories experienced significant price
increases in 2009, a trend that may continue in 2010. While these
increases are driven by a variety of market factors, most consumers
still define value based firstly on price, and it remains to be seen if
CPG and retail companies will be able to make these increases stick.
- The
recession saw a return to “self help.” From more meals prepared at home
to more beauty treatments and home health care, consumers took into
their own hands a wide range of services they previously purchased. IRI
anticipates that shoppers will only hesitantly revert to old habits.
They have discovered, for example, that home prepared meals taste
better and are better for them. They have also realized that for a wide
range of services, such as home hair coloring, they can achieve 90
percent of the quality for 20 percent of the cost.
- The
share gains of private brand products have become too significant to
ignore. To dismiss the popularity of private brands as a low price play
is dangerous. Many retailers have carved out unique value propositions
for private brands that include quality and convenience as well as
price. CPG companies need to devise strategies that assume private
brands will continue to gain in popularity.
“The year 2010 is one of opportunity,” says IRI Shopper Marketing and
Innovation President Thom Blischok. “With ongoing economic uncertainty,
consumers are turning to the packaged goods industry to satisfy a
growing number of daily needs. CPG marketers with the ability to
understand, or even anticipate, these evolving needs will forge
relationships that will outlast the recessionary environment.
About the Report
The IRI Times & Trends Report: “2009 CPG Year in Review: A Market Defined by Personalized Shopping Strategies,”
is available from IRI, the leading global provider of consumer,
shopper, and retail market intelligence and insights for the consumer
packaged goods (CPG), retail, and healthcare industries. The findings
of this report were compiled based on IRI MarketInsight™, IRI Consumer
Network and IRI AllScan Convenience Reviews™. To download the special
report, visit http://us.infores.com/page/news/times_and_trends.
About Information Resources, Inc.
IRI is the world’s leading provider of consumer, shopper, and retail
market intelligence and insights supporting 95 percent of the FORTUNE
Global 500 consumer packaged goods (CPG), retail and healthcare
companies. Only IRI offers the unique combination of integrated market
information, automated and predictive analytics, innovative enabling
technologies, and domain expertise. With IRI, leading retailers and
manufacturers are able to quickly discover breakthrough insights
driving smarter decisions and actions across the enterprise for
breakthrough results. Companies around the world depend on IRI for
improved productivity, stronger brands, and dramatic revenue growth.
For more information, visit http://us.infores.com.
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IRI CONTACTS:
John McIndoe
E-mail: john.mcindoe@infores.com
Phone: (312) 474-3862
Fax: (312) 726-1091
Shelley Hughes
E-mail: shelley.hughes@infores.com
Phone: (312) 474-3675
Fax: (312) 726-1091
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