Exploit these 10 trends to drive CPG growth in 2016
Conservative spending behaviors that made 2015 a challenging year for consumer packaged goods companies will remain intact for 2016, according to IRI, but there will be pockets of growth available to those who capitalize on 10 trends.
IRI is out with the latest installment of its Times & Trends report series, “Taking Stock of CPG Past and Future: Gear Up Now for a Year of Growth,” in which the company analyzes the lessons learned in 2015 and provides insight into several key trends that will drive growth in 2016.
Driving growth continued to be a challenge for the consumer packaged goods (CPG) industry in 2015. Manufacturers and retailers had to deal with the ebbs and flows of the economy and its impact on consumer spending as well as the increased demands of digital-savvy shoppers.
“We are taking a hard look at the peaks and valleys of 2015 and using these learnings to make a new plan for the coming year,” said Susan Viamari, IRI’s vice president of thought leadership. “We’re offering up insights into several trends that will provide growth opportunities for 2016 and beyond and are taking a deep dive into the three trends that we think will make a big impact.”
The CPG industry has been searching for growth for the past several years due to the challenging economy and conservative shopper spending. Last year, volume sales continued to slide and dollar sales growth was fed largely by inflationary pricing trends. When looking across channels, mass merchandisers and supercenters posted sharper-than-average declines and the club channel showed some resilience. The grocery and drug channels held volume flat, outperforming the industry average of negative 1.7%, according to IRI. Private label share of overall CPG spending changed very little during 2015 and remained relatively flat at the store level.