Findings:
Circana forecasts minimal retail food and beverage volume growth (0-1%) in 2025, with sales dollar growth driven by price increases (2.5%-3.5%).
2024's volume growth is expected to be 0.5%-1%, with overall sales growth projected at 2.2%-2.7%.
Key Takeaway: The food and beverage sector is stabilizing, with modest growth driven mainly by price increases rather than volume.
Trend: Shift from away-from-home to in-home consumption and global differences in growth rates.
Consumer Motivation: Consumers continue to spend on essential food and beverages despite economic volatility.
What is Driving the Trend: Economic stabilization and strategic pricing adjustments by retailers.
People Referenced:
Sally Lyons Wyatt: Circana’s global executive vice president.
Conclusions: Retailers will need to navigate modest volume growth with strategic pricing to maintain profitability.
Implications for Brands: Brands must focus on price management and innovation to drive growth in a stabilizing market.
Implications for Society: Modest economic recovery reflected in consumer spending patterns, with regional differences in growth.
Big Trend Implied: Global retail food and beverage growth is primarily price-driven, with regional variations in performance.
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