1、 2023 Nielsen Consumer LLC.All Rights Reserved.2023 Nielsen Consumer LLC.All Rights Reserved.Meeting Evolving Shopper Needs in an Ever-changing World 2023 Nielsen Consumer LLC.All Rights Reserved.Table of ContentsIntroduction3The State of the US Shopper5Shoppers and Inflation8Shoppers and Sustainabi

2、lity12The Omnichannel Shift15Key Tips for Meeting Shopper Needs18Conclusion20 2023 Nielsen Consumer LLC.All Rights Reserved.3IntroductionSource:NIQ,Total US xAOC,4 weeks ending April 1,2023-Unit price%change.*Annual sales$100 millionCPG brands are faced with a chaotic market and reactive shoppers202

3、3 has been a rocky year,to say the least.CPG brands have been faced with increased material costs,supply chain issues,inflationary pressures,and rapidly shifting consumer behaviors.Unfortunately,these are all impacting their bottom line and increasing prices across the board.In response,brands are b

4、eing forced to reconsider their growth plans and adjust to the market.This may include cutting products from their assortment,adjusting prices to cover rising costs,focusing on one retailer over another,or moving online to reach new markets.The key is to make these changes intelligently.Some of the

5、key topics well cover in this eBook are:How consumers are reacting to inflationThe growing demand for sustainability in CPGOmnichannel shopping trendsTips to keep pace with rapidly shifting consumer needs+45%The unit price change for chicken eggs over a four-week spanThis requires looking at retail

6、sales data,consumer behavior,competitor pricing and promotion tactics,outside factors,and more.The more comprehensive your understanding of the factors impacting your sales,the more intelligent your decisions will be.Looking not only at your product assortment and category but at individual SKUs and

7、 their trends may unlock new insights.Different categories are facing completely different challenges,so theres no simple solution for CPG brands to maintain their growth.2023 Nielsen Consumer LLC.All Rights Reserved.4Growing and Declining Categories in the USSource:NIQ Omnisales,Total US,Latest 52

8、weeks ended Dec,31 2022 vs.year-ago 2023 Nielsen Consumer LLC.All Rights Reserved.2023 Nielsen Consumer LLC.All Rights Reserved.5The State of the US Shopper 2023 Nielsen Consumer LLC.All Rights Reserved.6Source:NielsenIQ 2023 Consumer Outlook SurveyThe State of the US ShopperWith the markets in disa

9、rray,one thing is clear,this is an unsettling time for many consumers.NIQ research confirms that shoppers intend to change their spending habits to combat growingeconomic insecurity.Nearly two in five global consumers(39%)feel they are in a worse financial position this year.Unsure about the future

10、and bracing for extremes,consumers are in a constant state of skepticism.And with the looming prospect of further disruption down the road,consumers remain cautious with all forms of spending.This is causing CPG categories to grow or shrink at a more rapid pace than most brands have anticipated.Cons

11、umers are more willing than ever to change their lifestyles to protect their wallets,the environment,and the future.Many are facing increased costs across the board and are being forced to reevaluate.But not all shoppers act the same,so audience segmentation is necessary to identify key pockets of g

12、rowth and adapt effectively.In fact,consumers plan to spend less on most discretionary spendingcategories,where out-of-home dining(44%),out-of-home entertainment(41%),and clothing(40%)are leading the list of where consumers plan to trim their wallet allocation.As shoppers buy less and split thosepur

13、chases into wants versus needs,brands will need to work harder to engage them.Traditional marketing tactics may return to win back consumers who have shifted their purchases to value brands and retailers.But understanding consumer motivations and their new habits will play a key role in brand growth

14、 going forward.50%of Shoppers say they are willing to stock up when an item is on promotion 2023 Nielsen Consumer LLC.All Rights Reserved.7Sources:XCPG Prices continue to trend higher than the rate of CPI 2023 Nielsen Consumer LLC.All Rights Reserved.2023 Nielsen Consumer LLC.All Rights Reserved.8Sh

15、oppers and Inflation 2023 Nielsen Consumer LLC.All Rights Reserved.9Source:NIQ,Total US xAOC,4 weeks ending April 1,2023;NIQ,Total US xAOC,4 weekly periods ending February 25,2023Shoppers and InflationCPG inflation has been hurting American shoppers wallets since April 2020.In tracking grocery price

16、s for March,NIQs latest data shows some relief,but shoppers are still grappling with high prices.To deal with these pressures,consumers are changing their behaviors and trying to make their dollar go further.But that doesnt mean that price is the only thing they care about.Understanding the differen

17、t methods theyre using to cope with the pressure is key.With that in mind,here are 5 ways consumers are dealing with inflation:2.Bulk BuyingAnother notable way consumers are seeking to save is by buying larger package sizes.A quarter of Americans are buying larger sizes of products with long shelf l

18、ives as a savings strategy to get a lower cost per use.Unfortunately,this means many premium brands are losing out on sales to less-expensive alternatives.Brands may want to reconsider their product packs going forward to avoid getting overlooked on shelf or run promotions that entice shoppers to pu

19、rchase more products.This is especially true for FMCG products.1.Value ShoppingThe importance of value-based retailers is still increasing,with shoppers turning to stores with lower prices.Value retailers sales jumped 8%in March compared to the previous year,capturing 42.6%of CPG sales.Promotional s

20、ales remain a key driver of growth,with 50%of shoppers willing to stock up when their brand is on sale.However,brands must avoid promoting too aggressively to win back shifted share,as this is not a sustainable profit strategy.Promotions should be used purposefully to build brands,not to undermine l

21、oyalty.2023 Nielsen Consumer LLC.All Rights Reserved.10Shoppers and Inflation3.Focusing on the NecessitiesWhen inflation is high,CPG brands arent just competing with each other for dollars,theyre competing with entirely separate industries.Shoppers wallets are being strained by increased energy cost

22、s,rising rent,and other necessary living expenses.This means CPG brands are fighting for a smaller slice of the pie.If you sell necessary products(toilet paper,FMCG goods,personal care,etc.),youre in a good position,though price increases are still a risk.Otherwise,you may need to adjust your pricin

23、g and promotion strategy to keep your market share.5.Buying Affordable LuxuriesThough inflation is straining shoppers wallets,they arent ready to cut out all non-value products.Instead,many are choosing to spend on“affordable luxury”.That is,they are selecting a handful of premium products theyre wi

24、lling to splurge on or saving up to spend big on major events.This opens up new opportunities for premium brands to keep growth strong.Building brand equity or aligning your marketing and sales efforts to coincide with seasonal celebrations may be a good move.4.Going Private LabelFor years,retailers

25、 have been working to improve the quality and packaging of their private-label product offerings.But inflation has helped drive growth even faster.These brands,which on average provide 10%savings compared to national brands,maintained growth in March,up 9%as consumers sought value for money.Private

26、Label captured 19.2%of the consumer wallet for CPG sales during this month.To stay competitive you may want to identify pockets of the market that private label isnt reaching and align your products and marketing to leverage these sales.Source:NIQ,Total US xAOC,4 weeks ending April 1,2023 2023 Niels

27、en Consumer LLC.All Rights Reserved.11Source:NIQ,Total US xAOC,4 weeks ending April 1,2023 Vol=UnitsCPG Unit Sales Continue to Soften as Prices Remain HighUnderstand Your CategoryNot all categories are facing the same challenges.While the declining consumption of CPG products compared to the same pe

28、riod last year is a concern for the industry as a whole,departments are seeing major pricing differences.Food inflation continues to lead the charge at 10%,with a consumption decrease of 2%.Non-food prices increased by 8%,but unit sales declined by 4%compared to March 2022.Still,the trend is slowly

29、going downward.As prices continue to stabilize,retailers and manufacturers must continue to seek new drivers of growth,like innovation,promotion,and targeting growing consumer cohorts such as the aging population and multicultural communities.2023 Nielsen Consumer LLC.All Rights Reserved.2023 Nielse

30、n Consumer LLC.All Rights Reserved.12Shoppers and Sustainability 2023 Nielsen Consumer LLC.All Rights Reserved.13Shoppers and SustainabilityTheres no question that sustainability is still a major trend in 2023.In fact,almost all consumers(95%)say they are trying to take some action to live sustainab

31、ly.And theyre backing this up with their wallets.The continued growth of sustainability-minded consumers is causing a few shifts in the market.Its also changing the face of sustainability as a whole.Understanding this shift will be key not only this year but for the future.Here are five sustainabili

32、ty trends shoppers are driving:2.Social ResponsibilityConsumer demands for sustainability go beyond the products themselves.Responsible sourcing is one of THE MOST important sustainability claims to 45%of consumers.Making a difference in the world is a major factor for many sustainable consumers.Bra

33、nds that take an active role in driving social change are building equity that can pay dividends.Dont be afraid to tout your commitment to change.And if you arent there yet,its never too late to start.1.Sustainable PackagingFor many years,the CPG industry thought of sustainability in terms of packag

34、ing reducing single-use plastics and disposable items became causes for shoppers,brands,and retailers across the world.For todays shoppers,sustainable packaging is the lowest bar for their sustainability needs.This means brands that arent using sustainable packaging are behind the ball.A growing num

35、ber of shoppers(46%)want brands to take the lead on creating the sustainable change theyre looking for.Missing the mark early can be hard to recover from.Source:McKinsey and NielsenIQ 2023 Sustainability Report;NielsenIQ 2023 Consumer Outlook Survey;NielsenIQ The changing story of sustainability 202

36、3 Nielsen Consumer LLC.All Rights Reserved.143.Organic IngredientsOrganic claims make up the largest share of all sustainable product attributes and for good reason.Consumers care about their health and organic claims meet that need AND their sustainability demands.Organic certifications are a commo

37、n way to leverage this consumer demand.NIQ research also shows that 47%of consumers are very likely to choose a brand if it has health benefits for them as well as the planet.Brands that do a good job of leveraging organic claims can see tremendous upside by killing two birds with one stone.5.Free-f

38、rom ClaimsShoppers dont just care about whats in the products they consume,they look for what isnt there.“Free-from”ingredient trends have sustained over several years,and claims like paraben-free,allergen-free,and gluten-free now make up a significant portion of the market and are slightly outpacin

39、g total category growth.If you arent leveraging these claims on your packaging or in your marketing,youre missing out on an easy opportunity to connect with sustainable consumers.4.Plant-BasedIn our recent study with McKinsey&Company,we found that products making claims like“plant-based”had a 4.7%gr

40、owth differential over their peers.This makes sense as 15.5 million Americans follow a Vegetarian lifestyle with around 2 million of those following a purely vegan lifestyle.This market is continuing to grow,and you can see the markets reacting with more plant-based options hitting shelves.Adding ne

41、w product offerings or innovating in the plant-based space can be a smart investment for long-term growth.These products also tend to meet other sustainability needs.Shoppers and SustainabilitySource:NIQ 2023 Look Ahead Webinar;McKinsey and NielsenIQ 2023 Sustainability Report;NielsenIQ 2023 Consume

42、r Outlook Survey;NIQ The plant-based revolution:From niche to the future 2023 Nielsen Consumer LLC.All Rights Reserved.2023 Nielsen Consumer LLC.All Rights Reserved.15The Omnichannel Shift 2023 Nielsen Consumer LLC.All Rights Reserved.16The Omnichannel ShiftSources:NIQ Omnishopper,Total US,52 weeks

43、ending 12.31.22 While eCommerce shopping has been growing for years,it is the mixing of channels that truly defines the current and future retail landscape.Omnichannel shopping means that brands of all sizes are now visible in-store,online,and through apps.According to NIQ Omnishopper data,2022 brou

44、ght close to 15 million new online CPG shoppers to the table.These are shoppers that historically only shopped in-store but now embrace multiple channels for their shopping needs.Within the US,86%of CPG dollar sales are represented by“omnichannel shoppers.”This has helped drive the revenue opportuni

45、ties in the omnichannel space to$1.54 trillion.Yet,the omnichannel retail landscape in 2023 is a bit complicated.Today,more consumers than ever are choosing to shop with an omnichannel mindset.But retail tracking has become more complicated for brands that are choosing to embrace the omnichannel exp

46、erience.Unfortunately,many brands are only seeing a part of the picture via retail sales or a third-partycompany.Avoiding duplication in their sales is complicated and acting on inaccurate data leaves them in the darkstruggling to keep pace as their competition takes more shelf space and grows.This

47、is especially concerning when consumers are mixing their channels in a single shopping trip.In fact,more than one in five(22%)shoppers nowplan an in-store shopping trip combined with a prior online order.This means consumers are taking every opportunity they can to seek out products and make purchas

48、es in a way that is convenient for them.If brands arent accurately tracking these sales,they can invest their time and energy into ineffective strategies that wont land.Keeping up with the omnichannel shift requires accurate,up-to-date data,insights into how consumers are shopping and why,and the ab

49、ility to stay agile.As more consumers make the shift to an omnichannel mindset,brands that fall behind will likely struggle to catch up.2023 Nielsen Consumer LLC.All Rights Reserved.17Source:NIQ OmniSales Measurement,Total US,Prev 52 Wks w/e 01/28/23The Omnichannel ShiftThe split between in-store an

50、d online activity continues to widen,but the pace and extent of that widening varies by department.While many eCommerce insight leaders have at least a partial view into holistic omni performance metrics,they are often lacking the right level of granularity when it comes to department and category l

51、eading to potentially misguided omnichannel strategies and activations.NIQs omni data also shows that more food dollars are being spent in-store than online.But notably,within the U.S.,21%of online CPG food is being purchased on Amazon.When examining this department alone,were talking about a 21%bli

52、nd spot.2023 Nielsen Consumer LLC.All Rights Reserved.2023 Nielsen Consumer LLC.All Rights Reserved.18Key Tips for Meeting Shopper Needs 2023 Nielsen Consumer LLC.All Rights Reserved.19Key Tips for Meeting Shopper Needs2.Optimize Pricing&PromotionsWith so many consumers tightening their belts,pricin

53、g and promotions are under the microscope.Take the time to adjust your pricing strategy and set an effective promotion plan to maximize margins while meeting consumer needs.Pricing is the most critical lever impacting the commercial results,above fixed,variable costs,or even volume sales.Indeed a 1%

54、improvement in price equals an 11%improvement in margins.Understanding shopper motivations,what they expect from brands,and the outside factors affecting their wallets can help you build a solid growth plan.But you also want to ensure you dont deviate too far from your brand or core audience when ac

55、ting on these trends.With that in mind,here are 3 key tips for meeting evolving shopper needs:3.Highlight Relevant AttributesProducts with relevant ESG claims are on the rise.In our recent study with McKinsey&Company,we found that in two-thirds of categories,products that made ESG-related claims gre

56、w faster than those that didnt.Even better,products with ESG-related claims saw+1.7%higher sales growth over 3YA than products without.If you arent highlighting such claims on your product packaging or web listings,youre leaving money on the table.1.Engage them OftenIts nearly impossible to connect

57、with customers if they dont remember you.Engage with customers and prospects through social media or other marketing efforts while touting the different product attributes or value propositions you know theyre interested in.Just make sure you use the channel thats right for your brand.In a joint stu

58、dy with Dash Hudson,NIQ found that brands that entertained their audience on TikTok grow at a rate 34%faster than those who didnt.Source:NIQ and Dash Hudson Entertainment Score Report;McKinsey and NielsenIQ 2023 Sustainability Report20Photo placeholder 2023 Nielsen Consumer LLC.All Rights Reserved.2

59、0NIQ can help you get a Full View of the marketWhen the market is shifting,you need to be on top of your game if youre going to come out on top.NielsenIQ offers emerging and growth brands access to the same best-in-class,accurate data and high-quality insights that Fortune 500 brands leverageat a pr

60、ice customized for their budgets.We also know that businesses at different stages have diverse needs.Whether youre looking to nail your next retailer pitch,are expanding distribution,or need to defend your turf,we have the data and tools you need to succeed.Some of the solutions we can provide inclu

61、de:POS&Shopper DataProduct Attribute TrendsOmnichannel Sales DataDemand ForecastingPricing&Promotion OptimizationAssortment OptimizationExpert Insights into Market TrendsAnd MoreWhat You Can Do to Meet Shopper NeedsSee Our Emerging Brand SolutionsLearn More About NIQ 2023 Nielsen Consumer LLC.All Ri

62、ghts Reserved.2023 Nielsen Consumer LLC.All Rights Reserved.About NIQArthur C.Nielsen,who founded Nielsen in 1923,is the original name in consumer intelligence.After decades of helping companies look to the future,we are setting the foundation for our future by becoming NIQ.We continue to be the und

63、isputed industry leaders as evidenced by our experience and unmatched integrity.As we move forward,we are focused on providing the best retail and consumer data platform,enabling better innovation,faster delivery,and bolder decision-making.We are unwavering in our commitment to the ideals and passionate about helping clients achieve success.For more insights: