With budgets strained to the breaking point by skyrocketing gas, energy and food prices, American consumers are feeling the pinch and are reevaluating what they buy and where they shop. Here are excerpts from the new IRI study, “IRI Times & Trends Special Report: Competing in a Transforming Economy,” which examines the competitive landscape and delivers new insights into shifting consumer shopping and purchase behavior and resulting opportunities for CPG manufacturers and retailers.
The U.S. consumer experience is dramatically different today than it was just a year ago. Roughly half of U.S. consumers with income under $55,000 per year are now having difficulty buying the groceries they need (top chart). These shifts are reflected in total CPG purchase trends (bottom chart). While CPG dollar growth has remained solid, this growth has been price-driven. Demand slipped sharply in the second quarter of 2007.