Findings
CPG Volume Growth: Total store Consumer Packaged Goods (CPG) volumes rose 1.1% for the first time in three years, driven by consumer shifts to value-focused products and e-commerce channels amid high food prices.
Dollar Sales Growth Deceleration: CPG dollar sales grew only 2.5% year-to-date, the slowest growth in three years, compared to 4.7% and 8.6% in 2023 and 2022, respectively. Price inflation in previous years masked volume declines of 2% in 2022 and 1.2% in 2023.
E-Commerce Expansion: E-commerce, accounting for 10% of dollar sales, along with value channels, contributed 35% of food and beverage volume growth.
Private Labels vs. National Brands: Private label volume growth outpaced national brands as consumers prioritized value, although super-premium and premium foods still outperformed private labels in growth rates.
In-Home Consumption: Shoppers embraced "just-in-time shopping," increasing grocery store trips by 8.7% while reducing purchases per trip by 11%. In-home meal occasions grew by 1.1% as out-of-home traffic declined by 2%.
Convenience Store Declines: C-store volumes declined for three consecutive quarters, dropping by 5.4% in Q3 2024.
Key Takeaway
Economic pressures and evolving consumer behaviors are reshaping the CPG landscape, with an emphasis on e-commerce, private labels, and in-home dining, even as premium products retain appeal.
Trend
Consumers are navigating inflation by increasing grocery trips, shifting to private labels, and embracing e-commerce while reducing c-store visits and out-of-home dining.
Consumer Motivation
Value: Seeking affordability through private labels and value channels.
Convenience: Increased reliance on e-commerce and just-in-time shopping.
Quality: Balancing value with occasional indulgence in premium and super-premium products.
What is Driving the Trend
Persistent high food prices.
Growing availability and quality of private labels.
Shifting lifestyles, including increased in-home dining and reduced c-store trips.
E-commerce growth supported by consumer preference for convenience.
Who Are the People Referred to in the Article
Age Range: A broad spectrum of consumers navigating economic challenges.
Behavior: Value-conscious shoppers adopting e-commerce, private labels, and in-home dining.
Description of Product or Service
Private Label Products: High-quality, cost-effective alternatives to national brands.
E-commerce Services: Online ordering with in-store pickup or home delivery.
Super-Premium and Premium Foods: Indulgent options maintaining consumer interest despite economic pressures.
Age
All age groups are impacted, but value-seeking behaviors are more pronounced among budget-conscious demographics.
Conclusions
The CPG industry is undergoing a shift toward value, convenience, and quality, driven by changing consumer behaviors and economic pressures. Retailers that adapt to these trends are positioned for growth.
Implications for Brands
Diversify Offerings: Expanding private label options and premium product lines.
Focus on E-commerce: Enhancing online shopping and delivery capabilities.
Address Consumer Needs: Tailoring offerings to meet value and quality expectations.
Implications for Society
Shift in Shopping Habits: A focus on cost-effective solutions and in-home dining reshapes the food landscape.
E-commerce Growth: Expanding digital access impacts traditional retail models.
Implications for Consumers
Greater Choices: More private label and e-commerce options empower budget-conscious consumers.
Reduced C-store Spending: Economic constraints lead to prioritization of essentials over convenience.
Implications for Future
Retailers will need to invest in e-commerce, improve private label offerings, and innovate premium products to meet evolving consumer demands.
Consumer Trend
Increased demand for value-driven products, private labels, and in-home dining solutions.
Consumer Sub-Trend
Emerging preference for super-premium foods despite economic challenges.
Big Social Trend
Economic-driven consumption focusing on affordability, quality, and convenience.
Local Trend
Regional adoption of private labels and e-commerce varies based on infrastructure and consumer income levels.
Worldwide Social Trend
Global growth in e-commerce and private label offerings, influenced by inflationary pressures and digitalization.
Name of the Big Trend
"Value-Driven Consumption Evolution"
Name of Big Social Trend
"Affordable Quality Living"
Social Drive
Economic uncertainty pushes consumers toward affordable, high-quality products and digital solutions.
Learnings for Companies to Use in 2025
Invest in Private Labels: Emphasize quality and innovation to compete with national brands.
Expand E-commerce: Enhance digital shopping experiences with seamless pickup and delivery options.
Focus on Dual Offerings: Balance value products with premium options for diverse consumer segments.
Strategy Recommendations for Companies to Follow in 2025
Expand Private Labels: Build trust by ensuring comparable quality to national brands.
Enhance E-commerce Platforms: Invest in user-friendly online interfaces and efficient logistics.
Target Premium Markets: Cater to occasional indulgences with super-premium offerings.
Adapt to In-Home Consumption: Develop meal kits and ready-to-eat options that fit in-home dining trends.
Final Sentence (Key Concept)
The CPG landscape in 2024 reflects a shift to value, quality, and digitalization as consumers navigate high food prices and evolving shopping habits.
What Brands & Companies Should Do in 2025
Focus Areas:
Strengthen private label and premium product portfolios.
Expand digital and e-commerce capabilities.
Adapt marketing to highlight value and convenience.
Execution:
Collaborate with manufacturers to refine private label offerings.
Invest in logistics and technology to streamline e-commerce.
Emphasize affordability and occasional indulgence in consumer messaging.
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