How CPGs Like Kraft Heinz, PepsiCo, Unilever & More Are Shifting Investments to Spur Cautious Consumers
Higher prices, of course, have played a role. With that said, food and beverage retail prices are dropping, but discretionary general merchandise dollar sales still declined 5% and unit sales dropped 4% during the week ending Feb. 3, according to Circana.
“The purchase process has changed, and the change spans all industries and channels,” noted Cohen in a statement. “These widespread changes are rooted in need and practicality, rather than in desire and indulgence. Manufacturers and retailers need to adjust to this new behavior in order to create another shift in the consumer’s spending priorities.”
As many companies ramp up product innovation in 2024, some of the largest manufacturers recently detailed what they’re seeing about consumer behavior and how they’re adapting.