Dive into the dynamic world of Consumer Packaged Goods with our exclusive newsletter, Byzzer Buzz. Whether you’re a CPG enthusiast, an industry insider, or a curious mind, Byzzer Buzz is your ultimate source for all things emerging, innovative, and exciting in the realm of CPG.
Buzz Word: Elasticity
Elasticity refers to how much people change their buying habits when the price of goods increases or decreases.
If a product has “elastic” demand, when its price goes up slightly, people tend to buy a lot less of it. And if the price goes down slightly, they buy a lot more of it.
If a product is “inelastic” in demand, people don’t change how much they buy when the price changes. Even if the price increases slightly, they will buy the same amount.
How does elasticity drive a manufacturer’s decisions?
Manufacturer’s look at elasticity because it helps them determine how much people change their buying habits when prices or other factors change. Product elasticity influences their decisions on pricing products, running promotions, and managing their product lineup.
Download the Ultimate Guide to Pricing and Promotion for an in-depth examination of pricing and promotion strategies that are effective today.
All industries are under pressure from inflation, and consumers are reacting by shifting their behaviors. Your industry is not immune to these shifts, but are all the trends bad?
TOP SNACK TRENDS
- Price inflation disproportionately impacted snacking volumes – inflation for snacks was roughly 2x that of total food.
- The snack buyer is truly an omnichannel buyer – Snack dollars are growing by 14% online and over 15% in ‘value’ channels.
- 50% of snack dollar growth is from brands <$500MM and Private Label – as smaller, more nimble brands expand distribution through differentiated innovations, many larger players stand to lose share on shelf.
- Price increases as high as 18% for Salty and Sweet Snacks, Confections, Yogurt, and other top categories have prompted consumers to either trade down or buy less.
- Nearly 60% of consumers cite affordability as a top consideration when purchasing snacks – not surprising given most consumers spend 5% – 20% of their total budget on snacking.
TOP GROCERY TRENDS
- The constant pressure of inflation – The rate of food inflation increases is slowing but still high at 5%, with consumption down -1%
- The focus on health and wellness – According to NIQ’s 2022 Shopper Health Study, American consumers face a slew of health concerns shaping their shopping needs.
- The demand for convenience – Consumers are looking for ways to save time and eat healthier, leading to a demand for more convenient food options.
- The growth of e-commerce – 86% of US CPG dollar sales are represented by “omnichannel shoppers”
- The importance of personalization – Retailers use data and technology to personalize their offerings, such as recommending products based on past purchases or offering targeted discounts.
Go beyond the natural, unlock the Full ViewTM of your category
Introducing the Better ForTM Segment
Better For Segment™ goes beyond the “Natural Channel”, which as defined by competitors, misses 90% of the actual Better For™ market, where Premier Fresh shoppers spend 8x more share of wallet.
Get ready for the season opener!
The second annual NIQ Founders Pitch Slam will bring together some of the most innovative and transformative emerging CPG brands, challenging an elite set of founders to pitch their companies to industry insiders and business leaders as they vie for a first-place award.
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Are you following CPG best practices?
In our free eBook, we share some of the key ways successful CPG brands are staying on top in a chaotic marketplace and ways that you can adopt their habits.
Ask an Expert
Annie DiVenere – Director | Grocery, Snacks & Sweets
A passion for people, a love of creativity, and a need for success are the foundation of my career. I am an experienced sales professional with a demonstrated history of success in the CPG and data industry. Skilled in leadership, problem-solving, teamwork, change management, philanthropy, collaboration, and engagement.
I lead a team of sellers supporting emerging brands that have partnered with NielsenIQ. We focus on managing their current data requirements while uncovering roadblocks and matchmaking customer needs to NielsenIQ solutions.
In my job, I meet strangers and turn them into partners. Every day is an opportunity to connect personally, develop trust, be honest, and add value to my customer’s life. It’s the dream for a people pleaser like me!
What is your advice for emerging brands?
My advice (other than to use data to tell your story 🙂) is to network! There are so many amazing and interesting people in the CPG industry. It’s a melting pot of backgrounds and experiences and coupled with the passion of brands, makes this space special. Through networking, you can learn what has brought others success (or failure), develop meaningful or strategic connections, and even make some friends along the way.
What is your favorite snack trend right now?
My favorite snack trend is “Girl Dinner.” I feel like this isn’t a trend for me, since my go-to lunch order has always been a salad with a side of french fries. It’s called balance!
What’s your favorite omnichannel report in Byzzer?
Pricing Action report. Not only is pricing so important in the Grocery industry today, but this report also provides meaningful visuals and actionable recommendations. We also get a taste of price elasticities in this report, which is always interesting insights to me.
Discover Stories for Emerging Brands
It can take a lot of time to accrue data, glean valuable insights from it, and then put it into a usable format for your retailer meetings. That’s why we’ve created the Stories, available through the Byzzer platform. Stories a way for CPG manufacturers to automate the creation of presentations for retail category reviews and internal business reviews.
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