Consumers are feeling “anxious” and it will affect their spending year. This is a key takeaway from the NIQ presentation “What Comes Next for Retail?” At last month’s NGA show. The presentation focused on US data. NIQ’s latest consumer outlook report.
The report describes consumers as “vigilant,” “vigilant,” and “financially focused.” This is not a qualitative change from previous years, as it is a continuation and expansion of trends that have been building since the start of the pandemic.
Sherry Frey, NIQ’s VP of Total Wellness, commented in an email Q&A: “Economic burdens have come to the fore this year, and consumers have been very preoccupied with their sense of safety/access to vaccines/health prospects over the past few years.”
“Another factor driving this year’s unique focus on finances and the associated caution is the compounding influence of inflation and other factors. Rate increases have slowed, but real prices have not, so the cost of daily living has moved further and further out of our perceived comfort zone over the years.”
Inflation and financial uncertainty are driving changes in consumption patterns. That means consumers are spending more on essentials like groceries and less on discretionary things like eating out and food delivery. More than four of her ten Americans surveyed (42%) consumed fresh food (38%), raw meat (38%), dry/canned groceries (33%), and beverages (29%). %).
However, despite growing economic interest, consumers, especially the younger generation (ages 18-34), still prioritize sustainability. According to NIQ data, products with sustainability and social responsibility claims grew 8.1% more over the past five years than those without these claims.
The data also reveals a potentially huge opportunity, with 28% of consumers finding it difficult to find sustainable options. “Consumer interest in sustainability is on the rise, and more and more products are making sustainability claims, but we have also seen consumers become confused about how to find sustainable products on the shelf.” said Frey.
Food and beverage brands can partner with retailers to help consumers find the products they’re looking for. “Consumers want help from brands and retailers, especially to make sustainable choices. identifiable and also more affordable It’s related to categories,” Frey continued. “The opportunity to reward and incentivize sustainable choices through loyalty programs is one way for retailers and brands to partner to meet consumer needs and is a ‘sustainable pathway’. (online or offline) to make it easier to find sustainable options while providing transparency. So that consumers know they are making genuine choices. “
Finally, NIQ looked at how the omnichannel shopping experience is changing. Overall, in-store sales growth increased in 2022, but online sales growth slowed. In the food and beverage sector, in-store purchases accounted for 90% of sales last year, with consumers claiming to buy food of their choice, including fruits and vegetables, bakery products, meat and seafood, the top items identified as Personally.
To learn more about NIQ’s 2023 consumer outlook from a global perspective, visit Download full report.