IRI's Times & Trends highlights new developments and critical events across all major CPG categories and channels, providing powerful benchmarking data to help guide your strategic decisions. This issue examines three powerful consumer segments that will drive industry growth over the next several years. 

This free summary is also accessible via the GMA Web site  at http://www.gmabrands.com/publications/gmairi.cfm

INTRODUCTION

Three consumer groups are emerging as critical target segments for CPG manufacturers and retailers: families with young children, Hispanic consumers and lower-income consumers.

As the Echo-Boom enters parenthood, the population of households with young children (i.e., children under the age of 12) is climbing quickly. This group grows up with challenges which have not been faced by earlier generations - for example, the obesity epidemic - which will largely rule their shopping behavior for the foreseeable future, and play a major role in the development of buying and eating habits that will last a lifetime.

The Hispanic population is a force to be reckoned with. No other population in history has demonstrated such growth, both in terms of sheer number and spending power. And the ethnic diversity within the Hispanic population brings a whole new level of complexity to any attempt to serve the market.

Lower-income households struggle to meet basic needs on a very tight budget. Value, by necessity, is the prime driver of shopping behavior within this consumer segment. Lower-income households are perhaps the most under-served segment in retail today.
This month’s report analyzes shopping and purchase trends across these three emerging segments and highlights specific growth opportunities for each.


KEY FINDINGS

Emerging and under-served CPG target segments have been identified. Due to sheer size and/or projected growth, three consumer groups are emerging as critical target segments for CPG manufacturers and retailers: families with young children, Hispanic consumers and lower-income consumers.

Young families seek convenient but healthy alternatives. Households with young children are among the biggest consumers of CPG products, and their numbers are on the rise; attempts to capture share of this group’s staple products, baby and kid-driven categories, and meet growing health needs are driving innovation at the product and store level.