February 2011
Executive Overview
SymphonyIRI's Times & Trends highlights new developments and critical events across all major CPG categories and channels, providing powerful benchmarking data to help guide your strategic decisions. This issue of Times & Trends explores economic, channel, department and category performance throughout the past year.
Introduction
The year 2010 will go down as the year that the United States officially emerged from The Great Recession, the longest and deepest recession to hit this country since The Great Depression. Certainly, the economy has shown signs of improvement.
In 2010, the CPG industry also demonstrated signs of improvement. On average and across CPG channels, unit sales declines slowed markedly, virtually flattening. Some channels, departments and categories saw sales trends turn positive for the first time in over five quarters.
As 2011 unfolds, the CPG industry will continue to serve a very conservative consumer base. Inflating prices will add a layer of complexity to the already difficult task of balancing the value proposition versus margin and share goals. Still, it is a time of opportunity for CPG marketers. To capitalize on these opportunities, CPG marketers must act with a clear and precise understanding of the changing attitudes, needs and behaviors of their most important shopper and target segments.
Select Findings
The CPG industry showed signs of rebound in 2010 despite an unstable economy and an extremely conservative consumer environment. Gains are evidenced across a range of channels, departments and categories, with standout performance by drug retailers, and by departments and categories which serve consumers’ home-based eating and self-care rituals.
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Several CPG categories experienced healthy growth in 2010, driven largely by new product introductions. Savvy marketers are using new product innovation to appeal to consumers’ changing needs and wants, in some instances enticing shoppers to “trade up” to more expensive packaged goods solutions.
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See the complete report in the "CPG Year in Review: Out of Turmoil Rises Opportunity" pdf.