Circana Growth Insights

#169 - Discover the Nuances of Beverage Consumers

Carbonated soft drinks and bottled water are the universally preferred beverages across generations. From there, nuances emerge that shed light on the life stage priorities of different cohorts. Similarly, differences in product choices are seen by household income level and even ethnicity. Tatiana Lopez Aranzazu, consumer and shopper insights consultant at Circana, discusses differences across demographic cohorts and uncovers opportunities for manufacturers and retailers. 

Highlights: 

• Energy drinks are popular among most generations. But they are less relevant for boomers, who prioritize probiotic and low-sugar dairy drinks. 
• Functional beverages, particularly those delivering energy, weight control, and better-for-you attributes, are growing in popularity. 
• High-income households prefer beverages with protein and probiotic claims. Low-income households lean toward energy drinks. 
• Consumers are most likely to shop the grocery channel for most of the top beverage attributes. But mass and supercenters lead for immune defense claims, and club stores are the top channel for protein claims. 

#168 - Sipping Success: Total Beverage Trends and Opportunities

While hydration is still key, consumers want more from their beverages. Sally Lyons Wyatt, Circana’s global executive vice president and chief advisor, consumer goods and foodservice insights, shares extensive beverage research on out-of-home and in-home trends across tap water, morning beverages, cocktails, and satiety beverages. 

Highlights

• Consumers seek more personalization than ever, from flavoring tap water to interesting portable beverage containers. Marketers can see what consumers are turning to by watching book sales. Hint: Books on body cleansing and detoxing are trending. 
• In-home and out-of-home beverage trends are shifting. Consumers purchase portable beverage containers for out-of-home convenience. But they’re also purchasing specialty coffee makers, juicers, and smoothie makers to offset higher prices at foodservice. 
• Beverages deliver varying levels of nutrition, indulgence, satiety, and entertainment — with and without alcohol. The ripple effect of beverages goes well beyond what we’re drinking to how we’re consuming and where. Opportunities exist for marketers who consider new occasion moments, especially surrounding sports. 

#167 - Consumer Optimism Brightens the Holiday Outlook

Despite inflation, consumers are optimistic about their ability to spend a little more on gifts, foods, and beverages for upcoming holiday occasions. Sally Lyons Wyatt, Circana’s global executive vice president and chief advisor, consumer goods and foodservice insights, and Marshal Cohen, Circana’s chief retail officer, share their insights and observations for what’s in store (literally!) this holiday season. 

Highlights: 

• Inflation has eased, but consumers still anticipate paying a little more for holiday groceries. Similarly, consumers expect to spend an average of 2% more on holiday gifts this year versus 2023. 
• Optimism is wrapped in practicality this year, with consumers willing to pay for needed or practical items. But they’ll also spend more to elevate experiences. Notably, consumers report they’re more likely to make impulse purchases and self-gift this year. 
• Retailers are ready for a positive gifting season. Black Friday is back, complete with doorbusters and retailer exclusives. And shoppers can expect a better in-store experience with deals and gift inspiration. 
• Shoppers of CPG and gen merch are focused on value, and retailers of all stripes will work to frame their offerings in terms of quality, price, and relevance to the shopper. 

#166 - An Audit of America’s Kitchen Reveals a Shift to “Just-In-Time” Inventories

For more than 30 years, Circana has conducted extensive audits of the food items found in America’s kitchens, from spice cabinets and pantries to refrigerators and freezers. Results from the 2024 audit reveal our kitchens have fewer items, pointing to our growing desire for convenience. Darren Seifer, industry advisor, consumer goods & foodservice insights at Circana, shares observations on changing behaviors and opportunities to meet consumer needs. 

Highlights: 

• Consumers are keeping around 140 items in their kitchen, down from 160 in 2020. 
• There’s been an uptick in heat-and-eat solutions. Kitchen appliances such as air fryers and pod coffee makers are responding to the need for speed. 
• Conversely, there’s been a decline in food appliances like deep fryers or coffee grinders. 
• Manufacturers of CPG items and appliance makers have an opportunity to support the success of meals, with proper temperature cooking, simplified recipes, and products that deliver flavor and convenience. 

#165 - Spice Up Q4 2024 Holidays with CPG Inspiration

The outlook for fall and winter holidays is bright, even for CPG items experiencing persistent inflation. Consumers are willing to spend a little more to make the holidays special, but it’s up to retailers to facilitate this. Circana’s Jonna Parker and 2010 Analytics’ Anne-Marie Roerink discuss supporting holiday traditions and encouraging the adoption of new seasonal flavors.

Highlights

• When holidays fall during the week, such as Halloween 2024 landing on a Thursday, retailers should encourage consumers to stretch the celebrations.  Provide ideas for full-on parties and quick, fun meals to feed kids before trick-or-treating. 
• Start holiday promotions early to encourage consumers to come back for a second or third purchase. Retailers can add to the excitement by playing up seasonal flavors beyond pumpkin and mint, such as pecan, cinnamon, maple, and more. 
• Beyond holidays, retailers should focus on special occasions and promote affordability and inspiration for leftovers, especially proteins.

#164 - Social Media Is Driving Demand for Fresh

Cottage cheese. Grapes. Cucumbers. Each of these categories — among others — has seen tremendous sales lifts based on inspiration from social media influencers. Jonna Parker, team lead of Circana’s Fresh Foods Group, and Anne-Marie Roerink, president of 210 Analytics, talk about the opportunity to lean into social media. Explore how you can inspire and entertain young consumers who are still learning their way around the kitchen and the grocery store. 

Highlights: 

• Gen Z and millennials might be more engaged in social media, but every generation is looking for inspiration. 
• High inflation is working in grocery retail’s favor, as more consumers avoid restaurants and look for more affordable meal options. Using social media to help consumers save is a big opportunity. 
• Any product soaring in popularity is replacing another one. How can retailers, brands, growers, and shippers generate new occasions or bring excitement to existing occasions?

#163 - Expanding the Lens on Well-Being for New Opportunities

Retailers, brands, and services can support consumers around the world on their physical, mental, and social health journeys. Sally Lyons Wyatt, Circana’s global EVP and chief advisor, Consumer Goods & Foodservice Insights, shares well-being research highlights from industries as diverse as books, food, beauty, apparel, consumer tech, pet, toys, and more. Consumers’ pursuit of well-being is strong, and the opportunities to lean in and support them are many. You might just learn how to support your own well-being goals. 

Highlights: 

• Not one of the three pillars of well-being — physical, mental, and social — exists in a silo.
• Brands, retailers, and services should consider opportunities outside their own lane to promote their offerings, including cross-merchandising opportunities with complementary products. 
• Well-being is a global concern. While regional differences exist, there are many universal views, including the benefits of physical fitness, food as medicine, mental health awareness, and the value of community engagement. 

#162 - Younger Shoppers Are Upending Traditional Grocery. Think of It as an Opportunity.

U.S. consumers under the age of 35 will experience similar life stages as previous generations, but they will never mirror the grocery shopping patterns of older consumers. As the most ethnically diverse and tech-savvy population, they are inspired and moved by infotainment. They also have the unique ability to lean into their personal moods and appetites, answering in the moment, “what am I hungry for?” Jonna Parker, team lead, Circana’s Fresh Foods group, and Kelly Krumholz, perimeter client insights consultant, talk about stark generational differences. Learn why it’s important to start solving for the needs of shoppers aged 35 and younger, who soon will be the majority. 

Highlights 

• Shoppers under the age of 35 have been shaped by the acceleration of smart phones, the explosion of social media, and the COVID-19 pandemic. 
• Younger consumers are interested in cuisines like Japanese, Korean, and Cuban. This is a stark contrast to those of older generations, who prefer Mediterranean. 
• While it may have been the case for older generations, Gen Z and younger millennials prove the grocery store is not the only place to buy perishables. 
• Shoppers under the age of 35 under-spend in fresh. Most of their food dollars are spent on center-store items. 
• Young shoppers are motivated by relevance and experience. Messages that invoke feeling or speak to mood are more likely to hit the mark than low price. 

#161 - How Industry Should Adapt to Changing Approaches to Meals

When it comes to meals, U.S. consumers are having a 2020 moment, believes Darren Seifer, our industry advisor, Consumer Goods & Foodservice Insights. The percentage of meals sourced from retail for home consumption is nearly 87% in 2024, giving us a vibe of at-home behaviors during the pandemic. However, how we’re getting to those meals and what’s on the table is where shifts are occurring. Jonna Parker, team lead for our Fresh Foods Group, says grocery retail might be winning, but it’s not the stock-up of the pandemic times. Instead, it’s just-in-time shopping for specific meals, often with a view to how that meal will be extended to another occasion.

Highlights: 

• With persistent high inflation, consumers routinely try to stretch their food budget, from buying smaller amounts that fulfill a meal or two, to packing a lunch for work or eating what’s on hand to avoid waste.
• Retailers – and even operators – should embrace their role of curating assortment and making suggestions for meal solutions, especially for Gen Z, who haven’t landed on their weekly routines. 
• Approaches to meals change dramatically during the week. Easy one-dish meals might be the answer for a weekday, but weekend meals can be complicated, from-scratch affairs. 
• We have identified 6 billion annual occasions where consumers tell us they table their budget in favor of a celebration. This behavior helps explain positive sales of premium products and even the success of fast casual restaurants, both of which deliver quality and experience. 

#160 - The Food and Beverage Chronicles: Learning from Eating Patterns in America

Circana has been chronicling changing consumption behaviors in its Eating Patterns in America research for 39 years. David Portalatin, Circana’s senior vice president and industry advisor for food and foodservice, shares how insights from our research inform go-to-market strategies and innovation across CPG manufacturing, grocery retail, and foodservice. David also shares some of the biggest shifts taking place in recent generations, including how Starbucks reinvented the coffee occasion even as coffee consumption at home was declining. Does anyone remember the after-dinner cup of coffee?

Highlights:

• “Healthonomics” describes how consumers are balancing healthy choices amid persistent high inflation. Many consumers look for tiered offerings and base their purchases on their most desired attributes.
• Restaurant traffic is down, but restaurants will prevail. Consumers continue to place value on the food experience and service enjoyed while dining in restaurants.
• A ham sandwich has been the top lunch choice for 30 years or more. But the types of ham available, the emergence of artisanal breads, and different gourmet spreads have drastically changed the way it can be consumed.
• Where there’s innovation, there’s growth. Keep the innovation pipelines flowing.