New IRI Report Finds CPG Industry Struggled in 2015

The report also highlighted the top trends for 2016, which include ethnic diversity, online shopping and focusing on quality versus quantity.

January 29, 2016

CHICAGO – 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. IRI’s latest Times & Trends report, “Taking Stock of CPG Past and Future: Gear Up Now for a Year of Growth,” analyzes the lessons learned in 2015 and provides insight into several key trends that will drive growth in 2016.

“At the beginning of each new year, we all reflect on our past a bit and vow to find ways to make improvements in the coming months,” said Susan Viamari, vice president of thought leadership for IRI. “IRI’s latest research does just that with the CPG industry. 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. 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.”

Consumers will remain entrenched in their conservative purchase behaviors in 2016 even though one-third of Americans feel their financial situation will improve this year. Fifty-seven percent of consumers will make their purchase decisions before they enter the retail store, so marketers must continue their efforts to engage shoppers early in the planning process.

One-third of shoppers will choose brands based on coupons they have at home, and 29% will base purchase decisions on shopper loyalty card discounts. Of course, they’ll leverage a number of Internet-based tools, such as smartphone apps and online advertising and promotions, to keep their grocery budgets in check in 2016.

“Despite challenging market conditions, CPG marketers really do have reason for optimism in 2016,” said Viamari. “Advancing technology has really given retailers and manufacturers a distinct advantage during these times of rapid and widespread change. By investing to understand how best to leverage new advances to really tap into the change, marketers throughout the CPG industry will identify exciting new ways to create real and lasting market advantages.”

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