Demographic and economic shifts over the next ten years will dramatically reshape the growth of consumer packaged goods (CPG), according to new research from Nielsen which was presented today at the Consumer 360 conference in Orlando.
Categories that are likely to experience solid growth include ethnic health and beauty products, flour/shortening/sugar/yeast/eggs, and a variety of health-related goods such as vitamins and medications/remedies.  The slowest growth categories are expected to be toys and sporting goods, breakfast foods, baby care and pet products.
In just ten years time, the face of America will change: fewer households will have …

New Zealanders are increasingly concerned about their job security and prospects, according to a new survey from Nielsen.  Job confidence has slumped, with 71 percent of respondents characterizing local job prospects as “not so good” or “bad,” compared to just 38 percent who had that view six months ago.
Consumer confidence has also taken a hit, showing a nine-point drop to 90 since the survey was last conducted in October 2008.  Despite that drop, Kiwis’ confidence is strong compared to other Asia Pacific countries – 12 points higher – and 13 …

The peanut butter salmonella contamination earlier this year – which caused several fatalities – not surprisingly caused a dip in the sales of the product.  But now that the situation has subsided, sales of jarred peanut butter have returned to normal patterns.  For the four-week period ended April 18th, sales rose 2.7 percent over the previous four-week period, and were up 10.7 percent over the same period a year ago.
“The fact is that the contamination was limited to one supplier, and none of the big name brands were affected.  Consumers …

Sales in the UK grocery sector showed promising growth in the eight weeks ended April 18th, racking up 4.2 percent increases, and volume growth of 5.8 percent over the same period in 2008.  The convenience sector also showed a 3.2 percent in sales growth over a year ago, a marked improvement from a few months ago when sales growth was languishing at about 1 percent.
Sales over Easter week benefited the out-of-town megastores, which rung up sales 22 percent over the same period last year.
“Over 20 percent growth is a welcome …

Todd Hale, Senior Vice President, Consumer & Shopper Insights
Last week, my colleague Tom Pirovano wrote about how the economic downturn has slowed the growth of organic products to almost a standstill.   Looking at the broader health and wellness category, we are seeing similar patterns.  Grouping health and wellness claims Nielsen tracks through its LabelTrends service into three tiers based on annual growth rates, retailers and manufacturers will notice some interesting developments.
Tier 1 (15% to 26% annual sales growth): Just one claim – omega – showed any dollar growth in the last four weeks, racking up …

Todd Hale, Senior Vice President, Shopper and Consumer Insight
The beginning of the year brought some surprising good news for retailers: retail sales (excluding automotive) rebounded in January and February.  While the figures were not earth-shattering – sales grew 1 percent and January and 0.7 percent in February – they were significant improvements on the last four months of 2008, where declines ranged from 1.2 percent to 3.1 percent.

Using data collected by the Nielsen Homescan Consumer Panel, we saw improved trip performance in the first two months of the year in …

Organic products – which are often priced at a premium over non-organic products – have taken a sales hit over the last 12 months as consumers have cut back discretionary spending, according to new analysis by Nielsen’s Director of Industry Insights, Tom Pirovano.  In March 2008, monthly sales of organic products grew 24 percent; a year later, growth almost came to a standstill of 1 percent, marking a dramatic shift from previous monthly growth rates of more than 30 percent seen in 2005 and 2006.
[click to enlarge graph]

“The recession and …

Global declines in consumer activity appear to be moderating or hitting bottom, according to the new edition of the Nielsen Economic Current, which is based on the company’s key consumer trend data as well economic data to create a concise indicator of consumer behavior.  Out of the 11 major GDP countries, only Germany showed an increase in consumer behavior in February.
“Consumers worldwide appear to be in a holding pattern and we see evidence that consumer spending might be positioned to turn around,” said James Russo, Vice President Global Consumer Insights …

Each new day seems to bring more bad news about the economy.  With uncertainty and fear looming, American consumers have cut back on their shopping trips and changed the way they spend their hard-earned money.  For food retailers and consumer packaged goods manufacturers, these new trends do not necessarily spell doom.  If they know how to address consumers’ changing needs and can successfully engage them by appealing to their desire for value, significant opportunities remain.
Even though some analysts predict that the U.S. economy may have hit bottom and are cautiously …

Few Americans have been untouched by the economic downturn gripping the country. But how we respond varies widely by demographics, according to a Nielsen study. Understanding how we differ in the ways we cut back can create opportunities for manufacturers and advertisers.
Nielsen created eight segments that divided households into groups based on their behavior and reaction to the decline.  Despite conventional thinking that these segments are based primarily on income, characteristics such as age, household size and location were important factors in determining groups based on how they cut back …