2022 CPG Market Review and Outlook

SUMMARY

2022 CPG MARKET REVIEW AND OUTLOOK

The CPG and retail landscape will look a lot different in 2022, with mobility increasing and inflation anticipated to peak in the first half of the new year. In this new report, IRI looks back at the consumer behaviors and market forces that shaped 2021 and reveals key trends for 2022.

This detailed industry outlook includes predictions relating to inflation, pricing, labor shortages, at-home consumption, e-commerce, product trends, marketing investments, shopper priorities by generation and income level, and more.

Highlights:

• Disposable income remains up, despite the end of stimulus payments, and at-home CPG consumption remains elevated. Unemployment is down to 3.4%, with wages up and the labor market tight.
• As inflation rises, some large companies are implementing additional price increases. We see increasing price sensitivity emerge for everyday items such as breakfast meats, frozen poultry and pet food.
• Price will drive growth in 2022 as increasing mobility and inflation put downward pressure on volume.
• Investment will continue in digital vs. store assortments and in delivery speed and consumer experience improvements to drive incremental share gains.
• Pure-play e-commerce and mass channels will continue to dominate nonedible sales.
• Convenient meal solutions, demand for on-the-go options, self-care and home care will remain prominent trends.

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