Wednesday March 10, 2010

Recession Defines 2010 CPG Trends

Chicago — Frugal shopping behaviors brought on by the economic downturn are expected to have a strong continued effect on the market through 2010, according to Information Resources, Inc. (IRI).

Consumers reportedly cut spending on CPG items significantly as a result of the recession, and IRI sees frugality continuing long after the economy improves.

Lower energy prices, including gasoline, have made travel less of a financial burden. As such, the researcher sees a continuing trend of the more than half of all U.S. consumers shopping at 10 or more retailers to maximize CPG savings.

Private brand products have gained significant ground with low prices. IRI warns CPG companies should recognize this and devise strategies around continued and growing private label presence.

IRI reports more than 40 of the top 100 CPG categories raised prices significantly in 2009, which it predicts will continue. Consumers define value first by price, and IRI questions whether these increases will remain.

During the recession, more consumers have taken tasks into their own hands, doing things at home they might otherwise pay for such as preparing meals. IRI sees consumers recognizing the savings and quality improvements of these actions and expects they’ll likely continue this behavior.