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Aug 312 min read

Insight of the Day: Circana forecasts low volume growth to continue in 2025

Findings

Circana forecasts low retail food and beverage volume growth of 0-1% for 2025, with sales dollar growth expected between 2.5% and 3.5%, driven by price increases. The 2024 growth aligned closely with earlier projections, showing signs of market stabilization after years of volatility.

Key Takeaway

The F&B sector is stabilizing with modest growth driven primarily by price increases rather than volume, indicating cautious consumer spending and market conditions.

Trend

Ongoing low volume growth in the F&B sector, with a reliance on price increases to drive sales.

Consumer Motivation

Consumers are cautious in their spending, focusing on essential purchases, which limits volume growth.

What is Driving the Trend

Economic stabilization and shifts in consumer behavior towards in-home consumption and essential purchases.

Who are the People Referred to in the Article

  • Consumers: Individuals adjusting their spending in the F&B sector.

  • Manufacturers and Retailers: Industry players navigating low growth and focusing on pricing strategies.

Description of Consumers, Product, or Service

  • Consumers: Those making careful spending choices in the F&B market, opting for essential and cost-effective products.

  • Products/Services: Retail food and beverage products, particularly those affected by price increases.

Age

The article does not specify age, but trends likely impact a broad demographic of adult consumers.

Conclusions

The F&B sector is stabilizing with modest growth, primarily driven by price increases. Brands need to focus on pricing strategies and understand consumer spending behavior to maintain growth.

Implications for Brands

Brands should prepare for continued low volume growth and focus on pricing strategies and value offerings to drive sales.

Implication for Society

The stabilization of the F&B sector reflects broader economic recovery, but with consumers remaining cautious in their spending.

Big Trend Implied

The big trend implied is the stabilization of the F&B sector, with growth driven by price increases rather than volume, indicating cautious consumer behavior in a recovering economy.

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