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 provides insights into consumer trends shaping CPG market opportunity in 2008 and beyond. A free summary is also accessible via the GMA Web site at 

INTRODUCTION

The rules of the game are continually in flux across CPG markets as consumers shift expectations and reward retailers and manufacturers who best meet their evolving needs.

Winning in this environment requires being at least one step ahead – catching a trend as it is just emerging, and sometimes addressing a need that consumers did not even realize they had.

A key component of this process is tracking macro consumer trends and assessing what these trends mean for your business. To that end, this report identifies eight emerging trends that will deliver new growth potential for CPG manufacturers and retailers over the next year and beyond.

Savvy marketers who effectively tap into these trends have the opportunity to create the new rules, not simply react to them.


KEY FINDINGS

• Food and beverages are increasingly perceived as a health solution. Consumers are viewing food and beverages in a new light: disease management and prevention solution. Hot areas include digestive health, immunity, and antioxidants (eg. acerola cherry, oregano, honey). New “functional” products have been embraced by consumers.
  


• Demand for an energy boost reaches new heights. The quest for an energy pick-me-up is not new. Energy drink sales grew 30% last year, as the category continues its multi-year growth tear. What is new is the extent to which this quest is now permeating nearly every aspect of consumers’ lives: from beverages to snacks to personal care, consumers are gravitating to products that give them an added boost, opening up new product development and marketing opportunities.
  


• Consumers are re-defining “fresh.”The spectrum of “fresh” products is broadening on both ends, with growing demand for both local and frozen foods. The number of farmers’ markets has doubled over the past decade as consumers seek local produce, and half of consumers now view frozen as comparable to fresh in taste and nutrition.

• Sensory and premium product experiences are in hot demand. Products delivering sensory experiences, including bold, unique flavors in food and beverages and aromatherapy scents in laundry care and hair care are in high demand. Premium products in categories such as chocolates, coffee and beer are also seeing strong sales growth. Consumers appreciate small indulgences that help to relieve everyday stress.
   
• Sustainable products and packaging are poised for growth. With one-in-five consumers now “sustainability-driven” in brand and store selection, a viable market for mainstream sustainable (ie. green, fair trade) CPG products and packaging is emerging.
   
• Natural beauty care is going mainstream. There is growing interest in harnessing the power of nature to deliver beauty benefits; consumers are looking for easier access to natural beauty care products, offering new opportunity to mainstream retailers.
   
• Products that “do-it-all” are becoming more popularAs choice proliferates, consumers seek simplification through products that “do-it-all”, from multi-purpose cleaning cloths to mouthwash that freshens breath and whitens teeth to food and beverages that address multiple health needs.
  


• Consumers are looking for more information in CPG purchase decisions. CPG purchases are evolving from low involvement to considered, as consumers factor in attributes such as healthfulness, environmental impact and product origin in purchases decisions. Effective communication of these benefits is fast becoming a source of competitive advantage. The product package remains consumers’ go-to spot for information, but word of mouth and store signage are also highly-regarded.
   

Source: IRI's Times & Trends Reports
Information Resources, Inc. (IRI) is the world’s leading provider of enterprise market information solutions and services to the consumer packaged goods (CPG), retail, and healthcare industries.