Holiday celebrations are special, but they can also be costly. In 2014, Americans spent about $13 billion on holiday food and beverage items in the four weeks after Thanksgiving that include Hanukkah and Christmas, with meat and seafood accounting for nearly one quarter of CPG sales. Although CPG dollar spending increased for the 2014 holiday season (+1.3 percent versus 2013), volume sales slid as consumers worked to stay within their shopping budgets.
This year will have a similar outcome. While the economic outlook for the United States remains solid, retail experts indicate that holiday spending growth will be low, ranging from 2.8 to 4.0 percent. One-third of Americans plan to spend less on their holiday celebrations this year, and this is even higher among those who anticipate increased financial stress in 2016. When they shop for holiday food items, consumers will be seeking deals, with pre-planning and coupons a key part of their money-saving strategies. This deal-seeking behavior will be most prevalent among millennials, but baby boomers will also be cutting back on holiday food spending. Overall, IRI predicts that volume declines will occur across holiday menu categories, including high-ticket protein foods, resulting in steeper-than-average volume sales declines. However, this will be balanced by consumer spending on alcoholic beverages, which will be somewhat safe from declines this holiday spending season.
Download the “Holiday 2015: Making a List and Checking it Twice” report to find out what CPG manufacturers and retailers can do to take a more proactive approach with consumers during this season to win a coveted spot on their holiday food and beverage shopping lists.
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