The Opportunity for Retailers & Manufacturers with CPG Premium Products

SUMMARY

THE PREMIUM OPPORTUNITY

This report, part of IRI's "Discovering Pockets of Demand" report series, highlights one growth pocket for CPG manufacturers in 2021 and beyond – premium and super-premium products.

Despite the ongoing economic uncertainty and expectation, premium products have seen a spike in demand since the beginning of the pandemic within both high- and low-income households. CPG manufacturers and retailers need to be aware of this trend and ensure they are capturing the opportunity with premium products.

Observations:

• The anticipated shift to value and private label has not occurred as of November 2020.
• Both high- and low-income households are trading up in many CPG categories.
• Premium and super-premium products are gaining share at the expense of value and private label.
• E-commerce, which previously skewed high for super-premium products, is trending more mainstream with the surge of new shoppers during COVID-19.

Opportunities:

• Drive sales for premium and super-premium products, even in lower-income trading areas.
• Create targeted messaging, products and promotions for premium products.
• Focus on attractive lifetime-value cohorts.

Read Report

View all COVID-19 Reports