The average household spends $3,400 on packaged goods, but the average grocery banner only captures as much as 20% of that, according to a recent IRI report. “With the overall market not growing, retailers and manufacturers need to find new sources of growth by capturing a bigger piece of the existing pie,” wrote Web Fletcher, principal at IRI Shopper Analytics and lead author of IRI’s “Delivering Growth Through High-Value Customers” research, which was published in July.
While consumers may be growing more health-conscious with their food choices, it seems there is still room for life’s little indulgences. According to new international research on snacking motivation from Mintel, Americans cited treating themselves as the top reason to snack (50%), and more than one-quarter (28%) agreed that taste is more important than health when choosing a snack.
“The formula for growth is simple. There’s really only three levers you can pull — find new buyers, get your buyers to spend more and/or raise prices,” said Chris Morley, president of fast-moving consumer goods, or FMCG, and retail at Nielsen. “But talk to most retailers and FMCG companies today, and they’ll tell you that growth is increasingly hard to find.”