IRI Growth Insights

Household spending has shifted due to high inflation and economic uncertainty. Consumers are prioritizing essential items like groceries while often forgoing discretionary purchases, including games, apparel, and prestige beauty. Circana's Sally Lyons Wyatt, global EVP and chief advisor for consumer goods and foodservice insights, and Adam Mellott, vice president of consumer and shopper insights, provide valuable insights into the current state of household spending, the role of retailers, and the resilience of consumers during challenging times. Highlights: Consumers are carefully weighing their options at the shelf, which doesn't necessarily mean the end of indulgent and premium purchases. Many retailers, notably within the dollar channel, are putting value – including convenience and affordability – front and center, which is proving attractive to a wider audience of shoppers. Urban and rural consumers are reacting to economic uncertainty in different ways, which will impact product assortments, oftentimes within the same retail chain.   While tariffs haven't impacted CPG prices yet, consumers will be tracking prices carefully. Innovation – from product development to assortment – can be critical to locking in consumer loyalty during challenging times.

While they differ in size of revenue, U.S. CPG Growth Leaders all found innovative ways to connect with fragmented consumer communities using a range of growth levers. Sally Lyons Wyatt and Cara Loeys dive into the strategies that leading CPG companies deployed to achieve healthy growth in 2024, including the Five Cs of Success: community connections, comprehensive value, catering to multi-pronged wellness, collaborative growth, and company culture.   Key takeaways: Community connections: King Arthur Baking leaned on the experiences of consumers during COVID-19 to build a thriving baking community. This approach highlights the importance of engaging with consumers across different touchpoints and supporting them through innovative products and resources. Comprehensive value: Companies like Lifeway and Bausch & Lomb offer multi-functional products that provide a wide range of benefits. This strategy emphasizes the importance of delivering value that goes beyond price, enhancing convenience, experience, and well-being. Collaborative growth: Good Culture and Daisy Brand are reimagining their products and partnering with influencers to engage younger consumers. Innovative use of AI: The Coca-Cola Co. and e.l.f. Beauty are at the forefront of experimenting with AI to enhance productivity, efficiency, and consumer engagement. From AI-generated commercials to social media bots, these innovative approaches are revolutionizing how companies connect with their audience. Direct-to-consumer engagement: Company collaborations are resulting in successful, out-of-the-box solutions, many of which leverage digital sales and online promotional events to create buzz and engage loyal consumers.

Globally, licensing is a $365 billion business. The U.S. comprises about 60% of the market. Kristen McLean, senior executive director, The Circana Entertainment Knowledge Group, takes listeners into the world of licensing. Hear insight into the elements of successful licensing deals and what to consider when partnering with another brand. Highlights: There are four main types of licensing: character, personality or lifestyle, co-branded, and limited-time offer (LTO). 11% of licensing involves food, both CPG and foodservice. Successful licensing should include brands that overlap in appeal, but also work to expand the audience for both brands. Before diving into licensing, validation is critical. Consumer research can help ensure a licensing idea resonates with the target audience.

As a share of the total CPG/FMCG market, private brands vary across major global regions. In the EU, private labels account for nearly 39% of total market value and 47% of unit sales, while in the U.S., they represent 22% of dollar sales and 24% of unit sales. Sally Lyons Wyatt and Ananda Roy talk about retailer investments for private brands, including being category-focused, consumer-obsessed, innovative and of high quality.  Highlights include:  Successful retailers treat private labels like brands, cross-promoting them with name brand products and partnering with notable chefs on product development.  In EMEA, private brands have pulled back price promotional efforts and instead are focusing on promoting premium quality at a competitive price to name brands. While the U.S. lags other global regions in overall private label share, some categories, notably in the fresh perimeter departments, have a high share of total CPG sales.  The rise of the term “zero consumer” in Europe describes consumers who seek better value but show zero loyalty to any retailer or established brand. 

Inspired by their recent Top Trends in Fresh webinar, Jonna Parker, team lead, Circana's Fresh Foods group, and Kelly Krumholz, perimeter client insights consultant, provide a “refresh” on trends and opportunities impacting fresh grocery departments. While opportunities for growth continue to take root (GLP-1s, we're talking about you!), headwinds – including being out-marketed by center store – temper growth. Tune in to learn more.  Highlights: Well over half – 56% – of all trips to retail stores for food and beverage are quick trips, which usually involve only one or two departments.  Health-minded consumers account for about one-third of overall food and beverage spending. Fresh departments, especially produce and deli, are crucial for consumers who prioritize healthier eating and transparency in food sourcing. Fresh foods could benefit from suggestive selling and marketing – especially via social channels – based on consumer motivations and occasions. Fresh departments should capitalize on weekend dinners, which tend to include more scratch cooking.

Dive into the cutting-edge innovations and trends from CES 2025 with Circana's tech analysts Paul Gagnon, Ben Arnold, and Mike Crosby. This episode explores the transformative impact of artificial intelligence and more on consumer and B2B electronics, the evolution of smart home technology, and the future of wearable devices. Technology is reshaping not just consumer experiences, but also manufacturing, go-to-market strategies, and retail.  Key Highlights: AI is being incorporated into everyday products like smartphones, PCs, and TVs, enhancing the user experience through features like picture and sound quality optimization. But one watchout is that innovation needs to remain focused on tangible benefits for the end-user. Another pain point is managing consumer concerns with privacy.  Smart home devices, including smart doorbells and security cameras with AI capabilities, appliances and robotic vacuums are seeing enhanced functionality.  The next generation of smart glasses will drive new use cases and applications in personal health and augmented reality.  Retailers have a significant influence on the development and go-to-market strategies of tech products, particularly in the TV industry.

The impact of GLP-1 (glucagon-like peptide 1) usage for weight loss on the CPG food and beverage, nonfood, and other industries is just beginning. It's going to influence product innovation, store assortments, consumer engagement, and more. Sally Lyons Wyatt discusses groundbreaking research on GLP-1 use for weight loss, including how users shift their purchase habits while using the medication and after they stop taking it.  GLP-1 users generally purchase more than nonusers, with notable shifts in purchases among weight loss users. For example, categories like gum and breath mints help with a side effect of bad breath, while an uptick in tea purchases is tied to soothing an upset stomach. Categories such as frozen foods decreased in sales during usage of GLP-1s. Sales of recommended foods, including vegetables, eggs, and nuts, increased. The ripple effects of GLP-1 usage go far beyond CPG to include wearable technologies such as fitness trackers, apparel, beauty products, beverageware, and more.

Carbonated soft drinks and bottled water are the universally preferred beverages across generations. From there, nuances emerge that shed light on the life stage priorities of different cohorts. Similarly, differences in product choices are seen by household income level and even ethnicity. Tatiana Lopez Aranzazu, consumer and shopper insights consultant at Circana, discusses differences across demographic cohorts and uncovers opportunities for manufacturers and retailers.  Highlights:  Energy drinks are popular among most generations. But they are less relevant for boomers, who prioritize probiotic and low-sugar dairy drinks.  Functional beverages, particularly those delivering energy, weight control, and better-for-you attributes, are growing in popularity.  High-income households prefer beverages with protein and probiotic claims. Low-income households lean toward energy drinks.  Consumers are most likely to shop the grocery channel for most of the top beverage attributes. But mass and supercenters lead for immune defense claims, and club stores are the top channel for protein claims. 

While hydration is still key, consumers want more from their beverages. Sally Lyons Wyatt, Circana's global executive vice president and chief advisor, consumer goods and foodservice insights, shares extensive beverage research on out-of-home and in-home trends across tap water, morning beverages, cocktails, and satiety beverages.  Highlights Consumers seek more personalization than ever, from flavoring tap water to interesting portable beverage containers. Marketers can see what consumers are turning to by watching book sales. Hint: Books on body cleansing and detoxing are trending.  In-home and out-of-home beverage trends are shifting. Consumers purchase portable beverage containers for out-of-home convenience. But they're also purchasing specialty coffee makers, juicers, and smoothie makers to offset higher prices at foodservice.  Beverages deliver varying levels of nutrition, indulgence, satiety, and entertainment — with and without alcohol. The ripple effect of beverages goes well beyond what we're drinking to how we're consuming and where. Opportunities exist for marketers who consider new occasion moments, especially surrounding sports. 

Despite inflation, consumers are optimistic about their ability to spend a little more on gifts, foods, and beverages for upcoming holiday occasions. Sally Lyons Wyatt, Circana's global executive vice president and chief advisor, consumer goods and foodservice insights, and Marshal Cohen, Circana's chief retail officer, share their insights and observations for what's in store (literally!) this holiday season.  Highlights:  Inflation has eased, but consumers still anticipate paying a little more for holiday groceries. Similarly, consumers expect to spend an average of 2% more on holiday gifts this year versus 2023.  Optimism is wrapped in practicality this year, with consumers willing to pay for needed or practical items. But they'll also spend more to elevate experiences. Notably, consumers report they're more likely to make impulse purchases and self-gift this year.  Retailers are ready for a positive gifting season. Black Friday is back, complete with doorbusters and retailer exclusives. And shoppers can expect a better in-store experience with deals and gift inspiration.  Shoppers of CPG and gen merch are focused on value, and retailers of all stripes will work to frame their offerings in terms of quality, price, and relevance to the shopper. 

For more than 30 years, Circana has conducted extensive audits of the food items found in America's kitchens, from spice cabinets and pantries to refrigerators and freezers. Results from the 2024 audit reveal our kitchens have fewer items, pointing to our growing desire for convenience. Darren Seifer, industry advisor, consumer goods & foodservice insights at Circana, shares observations on changing behaviors and opportunities to meet consumer needs.  Highlights:  Consumers are keeping around 140 items in their kitchen, down from 160 in 2020.  There's been an uptick in heat-and-eat solutions. Kitchen appliances such as air fryers and pod coffee makers are responding to the need for speed.  Conversely, there's been a decline in food appliances like deep fryers or coffee grinders.  Manufacturers of CPG items and appliance makers have an opportunity to support the success of meals, with proper temperature cooking, simplified recipes, and products that deliver flavor and convenience. 

The outlook for fall and winter holidays is bright, even for CPG items experiencing persistent inflation. Consumers are willing to spend a little more to make the holidays special, but it's up to retailers to facilitate this. Circana's Jonna Parker and 2010 Analytics' Anne-Marie Roerink discuss supporting holiday traditions and encouraging the adoption of new seasonal flavors. Highlights When holidays fall during the week, such as Halloween 2024 landing on a Thursday, retailers should encourage consumers to stretch the celebrations.  Provide ideas for full-on parties and quick, fun meals to feed kids before trick-or-treating.  Start holiday promotions early to encourage consumers to come back for a second or third purchase. Retailers can add to the excitement by playing up seasonal flavors beyond pumpkin and mint, such as pecan, cinnamon, maple, and more.  Beyond holidays, retailers should focus on special occasions and promote affordability and inspiration for leftovers, especially proteins.

Cottage cheese. Grapes. Cucumbers. Each of these categories — among others — has seen tremendous sales lifts based on inspiration from social media influencers. Jonna Parker, team lead of Circana's Fresh Foods Group, and Anne-Marie Roerink, president of 210 Analytics, talk about the opportunity to lean into social media. Explore how you can inspire and entertain young consumers who are still learning their way around the kitchen and the grocery store.  Highlights:  Gen Z and millennials might be more engaged in social media, but every generation is looking for inspiration.  High inflation is working in grocery retail's favor, as more consumers avoid restaurants and look for more affordable meal options. Using social media to help consumers save is a big opportunity.  Any product soaring in popularity is replacing another one. How can retailers, brands, growers, and shippers generate new occasions or bring excitement to existing occasions?

U.S. consumers under the age of 35 will experience similar life stages as previous generations, but they will never mirror the grocery shopping patterns of older consumers. As the most ethnically diverse and tech-savvy population, they are inspired and moved by infotainment. They also have the unique ability to lean into their personal moods and appetites, answering in the moment, “what am I hungry for?” Jonna Parker, team lead, Circana's Fresh Foods group, and Kelly Krumholz, perimeter client insights consultant, talk about stark generational differences. Learn why it's important to start solving for the needs of shoppers aged 35 and younger, who soon will be the majority.  Highlights  Shoppers under the age of 35 have been shaped by the acceleration of smart phones, the explosion of social media, and the COVID-19 pandemic.  Younger consumers are interested in cuisines like Japanese, Korean, and Cuban. This is a stark contrast to those of older generations, who prefer Mediterranean.  While it may have been the case for older generations, Gen Z and younger millennials prove the grocery store is not the only place to buy perishables.  Shoppers under the age of 35 under-spend in fresh. Most of their food dollars are spent on center-store items.  Young shoppers are motivated by relevance and experience. Messages that invoke feeling or speak to mood are more likely to hit the mark than low price. 

Retailers, brands, and services can support consumers around the world on their physical, mental, and social health journeys. Sally Lyons Wyatt, Circana's global EVP and chief advisor, Consumer Goods & Foodservice Insights, shares well-being research highlights from industries as diverse as books, food, beauty, apparel, consumer tech, pet, toys, and more. Consumers' pursuit of well-being is strong, and the opportunities to lean in and support them are many. You might just learn how to support your own well-being goals.  Highlights:  Not one of the three pillars of well-being — physical, mental, and social — exists in a silo. Brands, retailers, and services should consider opportunities outside their own lane to promote their offerings, including cross-merchandising opportunities with complementary products.  Well-being is a global concern. While regional differences exist, there are many universal views, including the benefits of physical fitness, food as medicine, mental health awareness, and the value of community engagement. 

U.S. consumers under the age of 35 will experience similar life stages as previous generations, but they will never mirror the grocery shopping patterns of older consumers. As the most ethnically diverse and tech-savvy population, they are inspired and moved by infotainment. They also have the unique ability to lean into their personal moods and appetites, answering in the moment, “what am I hungry for?” Jonna Parker, team lead, Circana's Fresh Foods group, and Kelly Krumholz, perimeter client insights consultant, talk about stark generational differences. Learn why it's important to start solving for the needs of shoppers aged 35 and younger, who soon will be the majority.  Highlights  Shoppers under the age of 35 have been shaped by the acceleration of smart phones, the explosion of social media, and the COVID-19 pandemic.  Younger consumers are interested in cuisines like Japanese, Korean, and Cuban. This is a stark contrast to those of older generations, who prefer Mediterranean.  While it may have been the case for older generations, Gen Z and younger millennials prove the grocery store is not the only place to buy perishables.  Shoppers under the age of 35 under-spend in fresh. Most of their food dollars are spent on center-store items.  Young shoppers are motivated by relevance and experience. Messages that invoke feeling or speak to mood are more likely to hit the mark than low price. 

When it comes to meals, U.S. consumers are having a 2020 moment, believes Darren Seifer, our industry advisor, Consumer Goods & Foodservice Insights. The percentage of meals sourced from retail for home consumption is nearly 87% in 2024, giving us a vibe of at-home behaviors during the pandemic. However, how we're getting to those meals and what's on the table is where shifts are occurring. Jonna Parker, team lead for our Fresh Foods Group, says grocery retail might be winning, but it's not the stock-up of the pandemic times. Instead, it's just-in-time shopping for specific meals, often with a view to how that meal will be extended to another occasion. Highlights:  With persistent high inflation, consumers routinely try to stretch their food budget, from buying smaller amounts that fulfill a meal or two, to packing a lunch for work or eating what's on hand to avoid waste. Retailers – and even operators – should embrace their role of curating assortment and making suggestions for meal solutions, especially for Gen Z, who haven't landed on their weekly routines.  Approaches to meals change dramatically during the week. Easy one-dish meals might be the answer for a weekday, but weekend meals can be complicated, from-scratch affairs.  We have identified 6 billion annual occasions where consumers tell us they table their budget in favor of a celebration. This behavior helps explain positive sales of premium products and even the success of fast casual restaurants, both of which deliver quality and experience. 

Circana has been chronicling changing consumption behaviors in its Eating Patterns in America research for 39 years. David Portalatin, Circana's senior vice president and industry advisor for food and foodservice, shares how insights from our research inform go-to-market strategies and innovation across CPG manufacturing, grocery retail, and foodservice. David also shares some of the biggest shifts taking place in recent generations, including how Starbucks reinvented the coffee occasion even as coffee consumption at home was declining. Does anyone remember the after-dinner cup of coffee? Highlights: “Healthonomics” describes how consumers are balancing healthy choices amid persistent high inflation. Many consumers look for tiered offerings and base their purchases on their most desired attributes. Restaurant traffic is down, but restaurants will prevail. Consumers continue to place value on the food experience and service enjoyed while dining in restaurants. A ham sandwich has been the top lunch choice for 30 years or more. But the types of ham available, the emergence of artisanal breads, and different gourmet spreads have drastically changed the way it can be consumed. Where there's innovation, there's growth. Keep the innovation pipelines flowing.

How can you use the biggest takeaways from the 2024 International Dairy Deli Bakery Association (IDDBA) show in June to help your business succeed? Jonna Parker, team lead of Circana's Fresh Foods Group, and Anne-Marie Roerink, president of 210 Analytics, share highlights of new technologies, the challenges of balancing assortments by generational differences, the value of special occasions, and other lessons you should know for the rest of the year and beyond. Highlights: In addition to major holidays, consumers celebrate an average of 18 occasions annually. These events not only include more people, but they also represent moments when shoppers are willing to splurge to bring joy to others. Retailers are responding with more solutions and inspiration, from party trays to specialty baked goods. Innovation isn't always about new. Brands and retailers should inspire consumers to use products they're already buying in new ways. Technology can potentially offset labor challenges, but including high-touch offerings like hot bars and salad bars should be decided on a store-by-store or regional basis. Not all areas will support the investment.

Dupes, or replicas, of premium products are having a moment. Fueled by high inflation and turbocharged by social media, dupes are being purchased and touted with pride by U.S. consumers attracted to high-quality, low-priced items. Circana analysts Maggie Swiatkowski, Kristen Classi-Zummo, and Beth Goldstein illustrate how dupes are playing out across categories from apparel, accessories, and beauty to consumer tech, home goods, and food. Is this the dawn of a new era for private brands? Highlights: While dupes appeal to consumers of all ages, younger consumers are the most enthusiastic, given their strong engagement with social media. More than half of consumers have purchased a dupe and most would buy another. Even the products being duped benefit from the exposure and comparison of the replicas.

Nostalgia, inspiration, and self-care are trends driving consumer escapism. Inspired by her report, The Great Escape: Exploring the Rise of the Joy Economy, Kristen McLean, senior executive director of Circana's Entertainment Knowledge group, highlights opportunities for connecting to consumers' desire for escapism. Also important, she reviews what not to do. Highlights: Consumers are looking to escape negativity in the world. The joy economy provides manufacturers and retailers with the opportunity to serve consumers a positive experience. By putting the consumer at the center of decision-making, brands and retailers can benefit from participating in the joy economy. When done authentically, they can increase consumer loyalty. Younger consumers are looking for a deeper dialogue with brands. They are particularly more vocal about their expectations. Listening to these engaged consumers can fuel ideas for more meaningful connections.

There are four key principles fueling successful innovation beyond launch: distribution growth, trial, marketing support, and product expansion. None of these should be considered stand-alone strategies. Lisa Maas, principal and lead for Circana's Innovation practice, shares examples from New Product Pacesetters on how to achieve growth in the years after launch. Highlights: Table stakes should include setting the right expectations for sales and distribution. Marketing and support investment might ease from a peak of 25% of sales in year one. But support, easily in the 6% range, should continue. Retailers will continue to monitor the ability of products to keep shoppers coming back. New forms, new occasions, and moving into adjacencies are easy ways for consumers to remain loyal to preferred brands.

Consumers continue to feel the pinch of inflation. While food remains a priority, consumers face tough choices when making any purchases, but emotions also impact their decisions. Jonna Parker, principal, fresh foods, and Darren Seifer, industry advisor, consumer goods and foodservice insights, discuss the consumer mindset and how competition for the food dollar plays out across food destinations, channels, and stores.  Highlights:  Heat-and-eat and items and cooking sauces for easy meals are rising in demand. Consumers want to shave cooking time, but they don't want to compromise on taste or experience.  Content creators have introduced consumers to the versatility of cottage cheese. Opportunities exist to reframe categories and inspire consumers.  Donut sales are up and not just because they're a fun morning treat. Donuts have what CPG consumers are looking for: they're portable, convenient, ready-to-eat, and satisfying across dayparts. Consumers seek convenience, but they are agnostic about where they purchase. Cooked, and often shredded, chicken is showing up as a winner across channels, including club, grocery, super centers, and specialty grocers. 

Beverage alcohol consumption has changed dramatically in recent years. The pandemic impacted the way people consumed adult beverages, and younger consumers aged 21 and older are driving consumption of ready-to-drink (RTD) beverage alcohol products. Scott Scanlon, executive vice president of Circana's Beverage Alcohol practice, provides insight into these changes and the outlook for 2024 and beyond. Highlights:  Typically, as adults aged 21 and older begin drinking, their first choices are beer or wine. More recently, young adults aged 21 and older are starting with RTD beverages, particularly spirits-based options. Despite the vast array of beverage choices, beverage alcohol consumption is softening across generations. However, premium beverages are still showing growth. Much of the allure of RTD beverage alcohol among younger consumers is with packaging, including on-the-go options like ball form, slim cans, and aseptic packaging. Whiskey, tequila, spirits-based RTDs, and imported beer from Mexico continue to fuel the beverage alcohol market.

Our distribution, velocity, and penetration data, along with other metrics, shows us the top CPG Growth Leaders. But by listening to and observing the top companies, we can identify successful integrating strategies. Circana's Sally Lyons Wyatt, global executive vice president and chief advisor, consumer goods and foodservice insights, and Cara Loeys, principal, corporate CPG thought leadership, describe how the annual CPG Growth Leaders report is developed and share insights for CPG companies large and small. Highlights:  Companies have differing challenges based on their portfolios, which is why we study sales. While successful companies are laser focused on the consumer, they differ in how they leverage other strategies, including integrated engagement, continuous newness, the premium-value bifurcation, and embedding artificial intelligence. Newness with a twist is a better way to view innovation, given that changes can be small but prescriptive to meet consumer needs or even illuminate new usage and consumption occasions. Growth in a challenging market is hard to achieve, but truly integrating strategies provides the path to success.

In 2023, CPG private labels grew dollar and unit sales thanks to the unique confluence of retailers investing in their own brands and consumers facing high inflation. Mary Ellen Lynch, principal of Circana's center store solutions practice, discusses private brand shoppers and what they're looking for.  Highlights:  While consumers of all affluency levels buy private brands, households with children, as well as millennial and Gen X households with no children, are top purchasers of private brands.  Shoppers have price memory for their favorite brands and want to get as close to those former prices as possible. This puts pantry items in the domain of private brands, which are gaining share within salty snacks, long dominated by name brands.  Retailers continue to support their mainstream brands with marketing that reinforces their premium features: convenience, health, how products fit with the way consumers cook, elevated flavors, and quality experiences. 

Our expansion of multi-outlet data, MULO+, increases point-of-sale (POS) coverage 15%, providing 90% accuracy of CPG dollar sales sourced from census POS data. Jonna Parker, Team Lead, Circana's Fresh Foods Group, and Anne-Marie Roerink, president of 210 Analytics, share a glimpse of this new, expanded view of the competitive grocery landscape. Discover why it's critical for retailers to understand the go-to-market approach taken by all channels to determine their point of differentiation. Highlights: Consumers shop up to an average of 12 retailers, including club, value, mass merchandisers, and traditional retail. Chances are, all will have the fresh basics. Don't assume traditional grocery is the first choice for fresh.  With big box retailers and club stores focused on everyday low prices, high-low pricing in traditional grocery retail doesn't drive the trips it once did.  Most Americans celebrate 18 food-focused occasions each year. Retailers need to think beyond the big holidays to surprise, delight, and support shoppers.  Data from early 2024 shows that people are eating more meals at home, but they're not necessarily cooking from scratch. Learn how retailers can best support hybrid meals. 

Diversity, equity, and inclusion in business has positive benefits for workers, for business results, and for people and communities engaging with these businesses. Cecilia Ogude, Circana's senior vice president, Global Diversity, Equity, and Inclusion, breaks down the benefits and talks about what's missing without DEI.  Diversity doesn't just focus on one element or group and doesn't diminish the value of one group over another. It includes and supports everyone.   Equity – not equality – gives everyone access to opportunities.   Inclusion allows individuals the freedom to bring their lived experiences to their work, contributing to a rich corporate tapestry.   Without support for DEI, businesses stand to lose a connection among employees, leading to reduced collaboration and innovation.   

Some 93% of Gen Z and younger millennials are changing their behavior based on higher prices, a much higher percentage than previous generations. Stepping back for a wider view, Jonna Parker, team lead, Circana's Fresh Foods Group, believes these younger consumers have been impacted by more trauma, from terrorism and a recession to pandemic and current inflation. Given the world they've grown up in, they aren't going to become like their older counterparts. Parker and Anne-Marie Roerink, president of 210 Analytics, dive into generational differences and how retailers and brands can connect. Highlights: 2024 is an inflection point where generational differences in eating, cooking, and shopping will need to be balanced. Retailers and brands need to recognize that older consumers still shop the separate store departments (such as butcher, dairy, and produce) while younger consumers rely more on cross-merchandising that brings different departments together for easy solutions. Even as butcher service counters are closing, store butchers have social currency, providing service via recommendations and tips on social media platforms.

Nearly 13% of Americans, or 17% of U.S. households, receive Supplemental Nutrition Assistance benefits, yet they represent nearly a third of total store sales. Sally Lyons Wyatt, Circana's global executive vice president for consumer goods and foodservice insights, talks about who is winning the SNAP shopper and strategies all retailers should use to engage this valuable shopper group. Highlights: SNAP shoppers represent nearly 50% of dollar store sales, and nearly 40% of convenience channel sales. SNAP is intended as a short-term benefit, meaning that SNAP is always new to many recipients. Retailers can help onboard shoppers and navigate the store for SNAP-eligible purchases. Retailers that make online search easy for SNAP shoppers will build loyalty that lasts after the benefits are no longer needed.

Moving from full-service to self-service in meat and deli departments, increasing value-added offerings in produce and deli, these are just a few examples of grocery retail's evolution. Jonna Parker, team lead, Circana's Fresh Foods Group, and Anne-Marie Roerink, president of 210 Analytics, advocate for learning about the most important shopper groups and meeting their changing needs. Highlights: Baby boomers, long the biggest spenders, are on the cusp of being overtaken by Gen X and millennials. While it's still important to please boomers, long-term success depends on answering the call of younger shoppers. Younger consumers start their shopping journey online. The key to winning store traffic is securing the shopper before they enter the store. While older consumers value service, younger shoppers look for relevance and experience; think solutions, not stalls. Low-price and fresh offerings are no longer a reason to shop a store. Point of difference and only-available-here offerings will drive traffic.

Most of the consumer tech innovation at the Consumer Electronics Show 2024 are enhancements to existing technology; think better quality audio and new capabilities. Despite lackluster levels of product innovation showcased at CES, Circana tech analyst Ben Arnold and audio analyst Ashley McCann are optimistic about opportunities in kitchen, home and audio for growth in the year ahead.    Highlights:   While artificial intelligence was the buzzword at CES, AI hardware was harder to find. Chatbots in cars and a new keyboard function are standout examples.   Kitchen products that speed or improve cooking and mix cocktails were on display at CES, indicating increased innovation in the small home appliance space.  Products that support digital creators, including digital cameras and accessories, are experiencing sales growth.   There's still penetration opportunity, especially among older consumer, for smart home products, including security cameras and smart lighting.

Within the complex arena of marketing mix, linear TV and connected TV are viewed separately. Currently, CTV is having its moment, surpassing linear TV in return on ad spend. Circana's Susan Kelly, solutions design, global solutions delivery and Kelly Dunham, delivery director, talk about execution and measurement of success for both approaches and the increasing value of targeting that is giving CTV its shine.   Highlights:   Linear TV offers lower cost-per-impressions and provides a broader reach than connected TV.  Despite the higher cost-per-impression, advertisers are realizing a better return on ad spend with the targeted audiences connected TV reaches.  The sweet spot might be a combination of the reach of linear and the targeting audiences of CTV.   Measurement tools determine which levers (linear TV, CTV or other marketing strategies) are driving sales lifts.   Campaigns should be monitored mid-flight to ensure they're connecting with the right audience, at the right time and with the right message.  

The pandemic put the breaks on a lot of consumer tech innovation, so anticipation is building for CES 2024, when many companies will display their latest and greatest. Ben Arnold, Circana's executive director, industry analyst, Consumer Technology, provides examples of innovation that go beyond tech gadgets and shares what he hopes to see at the show.   Highlights:   From autonomous vehicles to drug discovery, artificial intelligence is making headlines. How will open-AI positively impact the daily lives of consumers?   Virtual reality hardware has been getting updates, but new applications are possible, from warehousing to personal fitness.    Circana research points to opportunities harness tech to empower consumers to take more control over their health.   Pet tech has been a darling of CES in recent years, but we're due for a new wave of innovation.  Don't miss Ben Arnold and Paul Gagnon's CES presentation: Navigating Today's Consumer Technology Market, January 8, in the West Hall, room 232, 2 pm. 

Traditionally in the U.S., the day after Thanksgiving is Black Friday, which moves holiday shopping into high gear. While doorbusters have dwindled, brands and retailers work to lure shoppers with deals and experiences that set the tone for holiday sales. Circana's Joe Derochowski, vice president and industry advisor, home and home improvement, and Ben Arnold, executive director, industry analyst, consumer technology, weigh in on Black Friday week results and discuss how their industries can claw back holiday sales. Highlights: While not as bad as 2022, sales of home goods and consumer electronics were still down. The upside, gains were made compared to earlier periods of 2023. Different ways to shop and research is changing Black Friday traffic and extending Black Friday sales beyond a single day. Consumer electronics, once was a key category that brought shoppers out on Black Friday, now has to work for a share of household spend. Innovation is needed to reenergize the market and give consumers the new products and experiences they're looking for.

As middle-of-the-road grocery retail continues to get squeezed, reaching consumers before they make decisions becomes critical. In this Fresh Pulse episode, Jonna Parker, team lead, Circana's Fresh Foods Group, and Anne-Marie Roerink, president of 210 Analytics, share strategies retailers can use to highlight their points of differentiation, starting with elevating outside-the-store marketing. Retailers' focus on in-store execution ignores pre-tailing, when consumers make their decisions of where to shop and what to buy, as well as post-tailing, their at-home experience with what was purchased. Foodservice leverages limited-time offers successfully, and it's a great opportunity for retailers as well. Use heavy traffic departments, like produce and meat, to promote digital offers and encourage app adoption.

Despite a forecasted sales decline of 4% - 5% through 2024, sales of small appliances remain elevated from pre-pandemic levels. To buck the negative trend, marketers should focus equally on messaging and innovation. Joe Derochowski, Circana's vice president and industry advisor, Home and Home Improvement, shares his secret sauce for picking holiday winners and identifying opportunities for growth throughout the year.   Highlights:   The replacement cycle for many small appliances may shrink from the traditional five to eight years given high usage throughout the pandemic. The top 10 items sold January through August are a great indicator of what will sell well during the winter gifting season. Holiday sales are anticipated to be down 4%, but there are ways to beat that by leaning into consumer behavior, especially the value we place on time. The Consumer Electronics Show, coming in January, is a great way to see the advancement of “smart,” including floor care, home comfort and personal care appliances. 

Both the economy and the replenishment cycle of products are negatively impacting the consumer technology industry. Paul Gagnon, Circana's consumer technology industry advisor, shares his outlook for the coming holiday season and how he hopes the industry is preparing for the time when consumers will be spending again.   Moving to a new home is a great motivator for tech purchases, but high mortgage rates, resumption of student loan payments and high credit card interest rates are all weighing down the housing market.    Consumers report they're willing to spend more for consumer electronics this holiday season, with TVs and PCs identified as intended purchases. However, consumers are looking for deals and they're willing to wait for them.  The Consumer Electronics Show is around the corner, and Paul will be looking for genuine innovation, improvements to bundles of hardware + services, and whether home automation players finally come together in a single, simple ecosystem for the benefit of the consumer.  

Anne-Marie Roerink, president of 210 Analytics, talks turkey – and economic pressures – with Circana's Joan Driggs. Times are tough and while it's critical to be realistic about economic pressures, it's also an opportunity to dig deeper opportunities to connect with shoppers.   Highlights:   When facing economic challenges, consumers revert to routines to avoid buyer's remorse, even with food items. Retailer and manufacturers have an opportunity to lean into the small celebrations that consumers embrace throughout the year, from family milestones to sporting events. Thanksgiving in 2023 might be the battle of retailers, many of which will be rolling back prices. Ultimately, Thanksgiving is the biggest food holiday of the year. Many households will right-size portions of some of the Thanksgiving meal to permit more options. Think preparing a turkey breast instead of a full bird to accommodate another roasted meat.  

To achieve growth, companies strive to predict what the consumer is likely to do in both the near term and long term. Optimal forecasting, according to Lance Goodridge, Circana's executive vice president of Analytics and Insights, will fit with current performance, include appropriate and predictable causal factors, and be within the bounds of company objectives. No small feat.   Highlights include:   While there will always be situations that can't be predicted, like an epidemic, the right mix of causal factors, including inflation, weather patterns and finance rates, along with consumer behaviors, can lead to sound demand forecasts. Accurate forecasts can help companies make decisions about investments in innovation, assortment, and production levels. What spurred demands in the past, like a promoted price, might not work as well in the future. Knowing the shopping journey can help determine specific purchase influencers.  

The unique value proposition of frozen foods is not getting the attention it deserves. Based on her webinar, Icy Hot Insights: Frozen Trends, Sally Lyons Wyatt, executive vice president and Practice Leader, Circana, outlines the many definitions of value that frozen addresses. Highlights.   Heavy frozen entrée buyers account for 36% more restaurant trips than the average customer. Frozen can compete on restaurant quality, cuisine type, and flavor experience, quickly and in the comfort of your own home. Manufacturers and retailers have opportunities to promote low cost per serving and ways frozen foods can stretch the food dollar. There are so many ways frozen foods aren't being promoted, including as waste minimizers, as recipe ingredients for trending kitchen appliances, or as options that fit special diets. Ice cream, sherbet and frozen novelties represent an anchor that attracts a wide cross-section of consumers. Leverage the power of frozen treats to promote other frozen items.  

In this Fresh Pulse episode, Jonna Parker, team lead, Circana's Fresh Foods Group, highlights consumer purchasing behavior in the meat department. Promotions aren't seeing expected lifts, purchases are designed for minimal waste, and it's often social platforms and digital retail apps that are guiding shoppers.   Highlights:   More consumers are using retail apps to plan shopping and load deals to their loyalty cards.   As shoppers visit fewer stores, being part of the consideration set is critical.   Younger shoppers are more likely than older shoppers to associate all types of channels, from Big Box to discount, as destinations for fresh foods. Grocery is winning in fresh by leveraging FOMO – fear of missing out.

As inflation continues to press consumers, volume sales are down across food and beverage. Amid economic headwinds and a return to pre-pandemic activity levels, consumer behaviors are changing, but we are not consuming less. Circana thought leaders David Portalatin and Alastair Steel explain how shifting behaviors are illustrating new patterns in consumption across retail and foodservice.   Highlights:   Food inflation might be easing, but we're still paying around 30% more for retail food and beverages than we were pre-pandemic. As consumers trade down, they are also buying smaller amounts to avoid waste.   Where disinflation is seen in retail, it's not occurring in foodservice, where the price of a meal is more than 4 times that of food sourced from retail. Still, growth can be seen for the morning and afternoon dayparts and at quick-service restaurants. Consumers are looking for deals. Restaurant apps are helping get diners in the door and feeling good about the value on offer. At retail, coupons are coming back, but not at depths that are motivating shoppers.  

Circana has undertaken an extensive audit of America's kitchens, recording what's in our pantries and refrigerators, and inventorying appliances, cookware and utensils. Findings, found in the new report, Inside America's Kitchens, reveal that we're stocking far fewer food items than in 2020, yet we're making good use of tools in our meal prep. Darren Seifer, Circana Food & Beverage Industry Analyst, shares insights into behavioral changes and generational differences.   Highlights:   With the inflation of 2023, consumers are pulling back on impulse purchases and doing their best to avoid waste. There are an average of 10% fewer pantry items in 2023 than there were in 2020.   Convenience is a priority for all consumers, but how we realize it differs, often based on our ability to pay for speed, great taste, fresh offerings and customization.   While coffee is nearly ubiquitous across households, there are dramatic generational differences in how it's prepared. Generation is an indicator of other food items, as well, with older consumers more likely to have staples like cooking oil and canned tomatoes, while the youngest households are more likely to have pasta sauce and pasta on hand.    

Inflation may be easing, but consumers are still paying dramatically higher prices than two years ago, and face increasing pressure resulting from the additional SNAP benefits that expired earlier this year, forthcoming student loan repayments and increasing credit card debt. Still, consumers of all household incomes are finding affordable escapes or rewards and easy entertaining ideas, courtesy of fresh foods. In this Fresh Pulse episode, Jonna Parker, principal of Circana's Fresh Center of Excellence, and Anne-Marie Roerink, president of 210 Analytics, discuss macroeconomic pressures, why even cash-strapped consumers are making choices based on “and” not “or,” and the importance of connecting with the right shoppers with the right products.   Highlights  The pinch of inflation continues to hurt, but fresh offerings can lean in by defining their “value” to the shopper. Across household income groups, value doesn't equal lowest price.   Shopper trips are up but baskets are smaller than two years ago, with consumers visiting more retailers to fulfill their needs. Too many retailers and brands are focused on high-spending boomers, often without realizing the changing behaviors of this group. It's time to look to where growth will come from.   Along with more frequent, small trips in-store, online shopping appeals to those wanting to stick to a budget. Both work against in-store discovery, meaning marketers must work harder to showcase new delights and solutions.  

Kristen McClean, executive director, industry analyst, Circana Books & Entertainment, describes books as “ideas wrapped up for sale.” When we study the books people buy, we learn about their thoughts and their shifting attitudes over time. This understanding helps us better meet changing consumer preferences. Highlights: Books reveal the radical changes that are taking place as we find our post-pandemic normal, including a return to work, experiential travel, and increasing interest in physical well-being. These interests, in turn, will affect product innovation, marketing strategies, and the influencers and social platforms consumers engage with. Sales of fiction books are up for three consecutive years, including romance, fantasy, and escapism, which are causing a ripple effect across the CPG, toys, and entertainment industries. “Kidults” might be driving more toy sales, but marketers of all products should take note of their child-like preferences.  

Easing inflation is making headlines, but consumers remain challenged by high prices. In this Fresh Pulse episode, Jonna Parker, principal of Circana's Fresh Center of Excellence, and Anne-Marie Roerink, president of 210 Analytics, discuss consumer behavior, macroeconomic challenges, and why plus-one purchases are undervalued.   Highlights:  Consumers are on the hunt for deals and will shop across multiple stores to find them. While trips were up, baskets were down around five units per trip in June 2023.  Consumers' value of their time has rebounded since the pandemic. As a result, hybrid meals are now the norm, with consumers leveraging freshly prepared retail options, restaurant offerings, and pantry staples to pull together meals. Bakery items epitomize the value of a plus-one purchase, as consumers look for affordable items to brighten lunchboxes, reward small accomplishments, or elevate meals. Retailers should encourage extra purchases through their apps.   

Consumer tech purchases for school, work, and entertainment were high during the pandemic. Tech items also have a long lifecycle, with replacements occurring on average every four years. The net result is a sluggish consumer tech industry in 2023. Circana's Mike Crosby, executive director, industry advisor for commercial and consumer technology, and Paul Gagnon, vice president, industry advisor, consumer technology, share their outlook on the consumer tech market for the remainder of 2023 and into 2024.   Highlights:   Most tech sales take place at the end of the year, from back-to-school season through the winter holidays. Retailers and manufacturers should use digital platforms to encourage consumers to shop in store, an easier place to showcase wares and adjacent products.   Innovation in consumer tech took a back seat to production during the pandemic. Look for the innovation pipeline to fill again at the close of 2023 and into 2024. There's excitement around AR/VR as Meta ups its game and Apple enters the arena. Consumers might be ready for tech upgrades and replacements, but budgets are tight. Many consumers will look for ways to extend the life of products they already own. Retailers and manufacturers should be prepared for the upcoming holiday season with optimal innovation or promotions — or both.  

Inflation is high, which might limit discretionary spending and travel for many. Still, it's summer and consumers are making the most of pandemic investments made in outdoor spaces, grills, and smokers. Now is the time for retailers to rewrite their summer playbook and merchandise for a new generation. Learn some tips and tricks from Jonna Parker, principal of Circana's Fresh Center of Excellence and Anne-Marie Roerink, president of 210 Analytics.  Highlights:   Meat might still be king of the grill, but its increasingly sharing space with vegetables, plant-based meat alternatives and different types of protein.   Brands that cross-promote across categories and retailers that highlight convenient solutions see a bigger sales lift. Consider the opportunities of educating and inspiring consumers with products from across the store to build bigger baskets around the theme of grilling, for example.    With more retail channels competing in fresh, too many are selling the same products and traditional price promotions aren't delivering lift. Consider digital ads and messaging to target and connect with shoppers and get them to make the trip to the store. Retailers don't necessarily need to change their assortments, but they should rethink how they merchandise. Consider different colors and merchandising strategies to position products in new ways.  

Innovation is a foundational attribute of Circana, so its sponsorship of The Sweets & Snacks Expo's Most Innovative New Product Awards makes perfect sense. Sally Lyons Wyatt, Circana's executive vice president and practice leader of client insights, and Anne-Marie Roerink, president of 210 Analytics, share insights on the winning trends and attributes.   Highlights:   Sweets and snacks are often an impulse purchase, so innovation in this area is particularly important. Older consumers look for innovation from their trusted brands, while younger consumers are attracted to global flavors and interesting experiences. Award-winning products made the most of packaging. They presented a sophisticated and clean front panel and told the brand/company story on the back panel. While bold and fun flavors dominated, other winners included sustainable products, allergy-friendly options, and products that mixed function with fun (such as energy- and vitamin-boosting candies).  

The merger of IRI and NPD ― now Circana ― brings together data and expertise from 20 industries, including CPG, general merchandise, and foodservice. These combined resources across 30 shopping channels, hundreds of retailers, and more than 1,200 categories enable Complete Wallet™, the most complete view of what, where, how, and when consumers buy. Patty Altman and Michelle Bennett, executive vice presidents of Consumer and Shopper Insights at Circana, describe the opportunities Complete Wallet unlocks.   Highlights:   Timely information — fueled by receipt panel data, consumer surveys, and myriad other data sets and technologies — identifies consumer lifestyle shifts as they happen in real time. Brands, retailers, and other industry players are able to expand their perspective on the shopper to identify new opportunities for growth. This more complete view also identifies consumer purchasing priorities across all categories as well as by shopper type, from SNAP recipients to generational cohorts.