The consumer packaged goods (CPG) industry has struggled in recent years to drive meaningful growth for convenience stores and other grocery retailers. Due in large part to a challenging economy with shopper spending remaining on the conservative side, volume and margin have remained stale.
With this in mind, market research firm IRI has released their most recent “Times & Trends” report which offers insight into some key trends to watch with the CPG industry in 2016:
- Circle the Wagons: Omnichannel retail is turning the CPG industry on its ear. Harness in-depth insights about how consumers travel online to understand the new path to purchase and drive in-store growth.
- Melting Pot Gets Hotter: The growth and transformation of U.S. households are altering shopper attitudes and behaviors. Keep a finger on the pulse of increasing ethnic diversity and the explosion of non-traditional families.
- Doing More with Less (Media): Consumers are constantly barraged with marketing messages. Cut through the noise in the marketplace and focus on quality versus quantity.
- Lean & Mean Growing Machine: Manufacturer consolidation will continue as CPGs look for new revenue streams. Consider specialized acquisitions to fill white-space growth opportunities.
- Big Opportunity in Small Packages: The urbanization of America will drive growth of smaller footprint stores. Meet urban shopper needs with localized specialty outlets.
- On the Highway to Health: Consumers are embracing a wide variety of healthier-living strategies. Look across CPG aisles for new ways to deliver healthier options for shoppers and the environment.
- Get Real: Consumers want to know what they’re putting into and onto their bodies, what they’re feeding their pets and exactly what is making their houses cleaner. Answer consumers’ thirst for transparency and authenticity.
- Snack Attack: On-the-go lifestyles continue to have a profound impact on consumer eating behavior. Tap into grazing, the new sit-down meal.
- Go Smart or Go Home: The focus on big data is rapidly giving way to smart data that will drive smart growth. Marry big data with technology and analytic know-how to pave the way to growth.
- Growth Comes from Within: There is no shortage of retail outlet options, so driving growth by adding stores is an ineffective strategy. Find growth by improving efficiency and productivity from within current stores.