Sidhant K.’s Post

🛒 US consumers are buying fewer items—but spending more! A must-read article from McKinsey for #CPG professionals, highlighting how changes in consumer behavior are impacting sales. https://lnkd.in/dQR-Z45K Sales volumes are declining across all categories, a trend expected to continue. CPG manufacturers need sophisticated strategies in pricing, assortment management, promotion, and brand investments. Implementing these strategies quickly and clearly, especially in sales channels with perfect retail execution and flexible promo tactics, is crucial. #ConsumerBehavior #RetailExecution

US consumers are purchasing fewer items across categories, reflecting subtle shifts in shopping behavior with meaningful consequences for consumer-packaged-goods players. In this article, we dive into the specifics of the recent CPG volume declines, to understand why consumer behaviors are shifting, and explore what this means for CPG businesses in 2024.

Consumers are spending more to buy less.       That’s the conclusion from the work of my partners studying recent dynamics in consumer goods. Consumers are shopping as frequently – if not more often – than they were a year ago, but they are buying fewer items.  Discretionary purchases are also suffering, with many consumers waiting for items to go on sale before purchasing – a trend that is true in several categories.      This article is great reading for CPG leaders looking to lay the groundwork to emerge from uncertainty stronger.      Portfolio, channel, pricing, loyalty, and supply chain are all powerful levers to pull – read on for Christina Adams, Kari Alldredge, and Warren Teichner’s insights into why. They also offer a view on the impact of GLP-1s on consumer spending.      #CPG #ConsumerGoods #Retail #B2C 

Consumers are Prioritizing Value Over Brand Loyalty Amid Rising Costs RRD’s 2024 CPG + Grocery Consumer Report reveals a significant shift in consumer behavior, as inflation drives shoppers to prioritize value over brand loyalty. With 88% expressing frustration over rising prices, consumers are opting for deals, switching to private labels, and using more coupons to make their dollars stretch. Brands must adapt by emphasizing value, convenience, and personalization, as 45% of shoppers—especially millennials—are willing to change stores for better savings. See report here: https://lnkd.in/gMVrwWHs #ConsumerBehavior #RetailTrends #InflationImpact #BrandLoyalty #rrd #packagingsolutions #supplychainsolutions #CPG

🛍️ The latest insights by #McKinsey into shifting #consumer 👼🏻#behavior in the 🌏world of consumer-packaged goods (CPG)! 👥Consumers are 📦#buying fewer items and #spending 📉 more, presenting #challenges for CPG players. Navigating this evolving landscape and understanding these dynamics is essential for staying 🏆 competitive. #CPG #TRENDS 🚨#Consumer #Shift: Despite a strong economy, consumers are buying fewer CPG 🧃items. 🚨#Volume #Drop: CPG volume is ↘️down 2-4%, affecting groceries, personal care, and household goods. 🚨#Buying #Behavior: Shoppers are making fewer 🛒purchases per trip, despite shopping as often as before. 🚨#Channel #Change: Spending is moving from 🏪stores to📱online and value channels. 🚨#Price #Influence: Higher 🏷️prices are driving reduced purchases across categories. 🚀#CPG #STRATEGIES🚀 Companies need to rethink portfolios, focus on online growth, adjust pricing, invest in loyalty, and optimize supply ⛓️chains. Discover more ⤵️⤵️ #ConsumerBehavior #RetailTrends #StrongerTogether

Consumers spending more to buy less ❗ McKinsey sheds light on US consumer behaviour shifts in CPG categories. While shopping frequency remains stable, consumers are buying fewer items per trip, driven by price sensitivity. How could CPG executives effectively address this scenario? ✅ Reassess product portfolios and pricing strategies. ✅ Accellerate growing channels, e.g. online channel, increasingly prioritized by Gen-Z consumers. ✅ Continue to invest in brand loyalty! ✅ Shape an agile end-to-end Supply Chain with Industry 4.0 levers, able to meet changing demand patterns.   #fmcg #cpg #industry40 #mckinsey

There is a trend easily visible everywhere we look - the CPG volume decline across categories, from grocery to personal care and household products. This is happening even though consumers increase their shopping frequency across most channels and categories, creating a confusing set of circumstances for CPG brands to navigate. The below article is a full analyses by McKinsey into the reasons of consumer behavior changes and its meaning for US CPG companies: ✔ increased frequency, fewer items ✔ shift from brick and mortar to online and value channels ✔ the effect of higher prices while also providing 5 strategies to combat volume decline. #consumerbehavior #CPG #revenuemanagement #channelmanagement https://lnkd.in/ed8aiMPn

Consumers are shopping more frequently – but purchasing fewer items. And they’re shifting further towards online and value channels, and away from traditional brick and mortar stores.   It’s a challenging environment for consumer goods brands. But by focusing on five areas – portfolio, channel, pricing, brand loyalty, and supply chain –CPGs can drive growth despite this.   For a deep dive into our recent research on consumer behaviors, do give this article a read.   #CPG #Growth #Retail #ConsumerGoods

US consumers are purchasing fewer items, but spending more to do so. And this is across all item lines from grocery and personal care to household products 🛍️ This subtle shift in shopping behaviour has big consequences for consumer-packaged goods players. Our new report sets out five strategies to help CPG organizations combat these volume declines: 🔬 Evaluating portfolios for pockets of headroom 🌱 Accelerating growing channels 📈 Recalibrating pricing and promotion strategies 🤝 Continuing investment in brand loyalty 🚚 Aligning supply chain with demand More here ⬇️ #McKinseyGMS #B2C #Retail #CPG

US consumers are buying fewer items across various categories despite spending more, highlighting shifts in shopping behaviors with implications for the consumer-packaged-goods (#CPG) industry: - Volume Decline Across CPG: Despite economic strength, there's a notable decrease in consumer goods volume, with significant declines in categories like groceries, personal care, and household products. - Consumer Behavior Shifts: Shoppers are frequenting stores more often but purchasing fewer items per visit, driven by higher prices and strategic buying habits. - Strategies for CPG Companies: The piece suggests evaluating product portfolios, accelerating growth in online and value channels, rethinking pricing strategies, investing in brand loyalty, and calibrating supply chains to current demand to combat volume declines. Is this one more sign of a cooling U.S. market? #consumermarket #economy #paretointerim #inflation