How US consumer behavior is changing: Perspectives from the CPG industry | So Good News
US consumers are seeing higher prices when they shop, and they don’t have much hope about their financial future—but they haven’t stopped spending money. That’s good news for consumer-packaged-goods (CPG) manufacturers. However, consumers are making spending decisions differently than they used to, and CPG companies must understand—or, even better, anticipate—this change. This video explores four themes that CPG companies would do well to keep in mind as they navigate the uncertainty in today’s US market.
Watch this video to learn more about:
- “business” style—and what it looks like depending on the team, strategy, and sector
- the recent boom in the private label market, after two years of stagnation that began with the COVID-19 crisis.
- trade routes that continue to grow despite rising inflation
- differences between demographic groups in terms of spending and attitudes – for example, millennials with high incomes show a strong intention to spend in the future.
Given these trends, it is more important than ever for CPG companies to deeply understand consumer segments, improve brand and product perceptions, and invest in innovation. To learn more about US consumer sentiment and behavior, see “Greater Uncertainty: US consumer confidence in a time of rising prices” and read (or listen to) the following episodes from McKinsey on Consumer and Retail podcast: “Capturing the passion of the US consumer” and “Understanding the ever-changing, surprising consumer.”