IRI Consumer Connect Survey Finds CPG Non-Edible Sales Trends Mixed Despite Consumer Confidence at All-Time High

Consumers focused on saving money; non-edible unit sales down, while dollar sales up

CHICAGO — July 31, 2019
 — Consumer confidence peaked in Q2 2019, but spending is down and saving is up, according to the latest IRI® Consumer Connect Survey results released today. Even though 56% of consumers say their financial health is good, CPG unit sales were flat or down and the non-food sector is struggling as well. To examine how consumers’ shopping behaviours and attitudes are affecting non-edibles, IRI also released a new report, "Consumer Confidence Impacts Non-Food Sales."

"Given the strong GDP, record unemployment and even steady inflation, consumers are feeling very confident," said Joan Driggs, vice president of Content and Thought Leadership. "However, when we look at consumer behaviour, it’s as if they’re waiting for a shoe to drop. They are saving more and curbing spending on non-edible products, such as beauty and personal care."

The Consumer Connect Index, which monitors consumers’ financial health and CPG behaviours for factors such as brand loyalty, attitudes toward organic/natural food and beverages, perception of national compared to store brands and frequency of using retailers’ and manufacturers’ coupons, is above 100 for Q2 2019, the highest since the Consumer Connect survey was launched in Q1 2016. Consumers report they are saving more in 2019 (42%) compared to a year ago (39%). Sixty percent of households earning $100,000 or more say their savings have grown in the past six months. The rate of increased savings is fairly consistent across all generations.

Doing more with less
Non-edible unit sales were flat or down for Q2 2019, while dollar sales were a healthy 2.9% in April, softening to 1.2% in June. Spending on national brand non-edible products continues to outpace spending on private label non-edible products. Yet, buying private label products remains the top strategy consumers use for saving money — 80% in Q2 2019, down from 84% in the same period of 2018.

General merchandise, health care and home care monthly dollar sales grew in Q2 2019, while beauty is flat and tobacco sales are down. Deal seeking in beauty and personal care is most prevalent among less wealthy shoppers, millennials and Generation X.

More than one-third of consumers (36%) report they are willing to pay a premium for products marketed as sustainable, an increase of 2 percentage points from a year earlier. While millennials are the generation most willing to pay a premium, sustainability attributes resonate with shoppers across all household income groups. Millennials also seek products made with natural ingredients and are the most likely to report avoiding products with ingredients they don’t want, such as parabens, artificial colors and sodium lauryl sulfates.

"We anticipate that shoppers will gravitate toward premium private brand beauty and personal care products, such as those available at Ulta and Sephora," added Driggs. "Thirty percent of shoppers expect to purchase more premium brands in the coming months, but private label options remain the top strategy for saving money. It’s these specialty retailers, which also offer elevated levels of service, that are best positioned to offer shoppers premium private brand options."

About the IRI Consumer Connect Survey
IRI provides new survey results at the end of each calendar quarter covering shoppers’ behaviours and attitudes as they directly relate to their strategies for learning about, purchasing and utilising CPG and health care products, as well as information regarding perceptions of economic conditions and their ability to provide for their families. For more information about customising the research for a particular category or industry, please contact IRIMarketing@IRIworldwide.com.

About the IRI Partner Ecosystem
IRI fundamentally believes that delivering differentiated growth for clients requires deep, highly integrated partnering with a variety of best-of-breed companies. As such, IRI works closely with a broad range of industry leaders across multiple industries and sectors to create innovative joint solutions, services and access to capabilities to help its clients more effectively collaborate and compete in their various markets and exceed their growth objectives. IRI is committed to its partnership philosophy and continues to actively enhance its open ecosystem of partners through alliances, joint ventures, acquisitions and affiliations. The IRI Partner Ecosystem includes such leading companies as 84.51°, Adobe, The Boston Consulting Group, comScore, Dynata, Experian, Geoscape, GfK, Gigwalk, Google, Ipsos, LiveRamp, Mastercard Advisors, MaxPoint, Omnicom, Oracle, Pinterest, Research Now, Simulmedia, SPINS, Survey Sampling International, Univision, Viant, Yieldbot and others.

About IRI
IRI is a leading provider of big data, predictive analytics and forward-looking insights that help CPG, OTC health care organisations, retailers, financial services and media companies grow their businesses. A confluence of major external events — a change in consumer buying habits, big data coming into its own, advanced analytics and personalised consumer activation — is leading to a seismic shift in drivers of success in all industries. With the largest repository of purchase, media, social, causal and loyalty data, all integrated on an on-demand, cloud-based technology platform, IRI is empowering the personalisation revolution, helping to guide its more than 5,000 clients around the world in their quests to remain relentlessly relevant, capture market share, connect with consumers, collaborate with key constituents and deliver market-leading growth. For more information, visit www.iriworldwide.com.

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IRI Contact:
Shelley Hughes
Email: Shelley.Hughes@IRIworldwide.com
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