THE U.S. ECONOMY
• Millennials—those Americans born between 1979-1989—are one of the
largest demographics in the country and will soon be entering a strong growth
period in both income and consumer packaged goods (CPG) spending. However, these young Americans are not a typical consumer group and taking advantage of this emerging $54.3 billion opportunity presents significant
challenges, according to a new study by Information Resources, Inc., Chicago.
When compared with older shoppers, millennial households shop less
often, spend more per trip, and do a greater share of their CPG spending at
supercenters and Walmart, according to IRI. Under budget constraints due to
the economy, millennials have pulled back spending in many indulgent and
convenience food categories. Further, IRI found that millennial non-food
spending is similar to Generation X households.
At a category level, hair care, suntan products and household cleaner cloths
are among several categories that have potential for strong growth with millennials, since consumption in many non-food categories peak for shoppers
in their 40s when their household size peaks.
Today, 70% of millennials agree that store brands are typically of excellent
quality. Surprisingly, millennials’attitudes and actual purchases of private label
brands is roughly on par with older shoppers, which refutes the conventional
wisdom that private label acceptance takes a long time to evolve for a given consumer. This private label acceptance also illustrates that
branded manufacturers are routinely falling short in their efforts to build their brands with millennials through traditional media, such
as TV, radio and print. These traditional approaches are not nearly as influential or as effective for millennials as it was with previous generations. Manufacturers will need to explore other non-traditional methods to reach this group, according to IRI.
More info: http://us.infores.com
Millennials shop less often, spend more per trip and do a
greater share of their CPG spending at supercenters.
Wipes Demand To Boost Nonwovens Usage
• Growth of the U.S. population as well as a rise in household and personal income will result in higher expenditures for
wipes and other consumer disposables, according to a new study on nonwovens from The Freedonia Group Inc.
The Cleveland, OH-based industry research firm reports that the aging of the U.S. population, leading to sizable increases in the number of people 65 years and older, will boost demand for nonwovens used in medical/surgical and adult incontinence products. On the
other hand, Freedonia stated that the U.S. represents a mature market for a number of nonwoven goods, including baby wipes and
baby diapers, which will dampen overall sales gains through 2013, as will competition from other types of materials.
More info: www.freedoniagroup.com
Prestige Skin Care Sales Continue to Decline
• In October, U.S. prestige skin care sales fell for the 12th straight month in dollars and units, according to The NPD Group,
Port Washington, NY. Both dollars and units were down 1%, which represented the lowest declines of the year. Moreover, prestige skin
care had the best dollar and unit performance of the three prestige beauty categories (skin care, fragrance, and makeup). Skin care’s average price was flat at approximately $38, according to The NPD Group.
For the first 10 months of 2009, skin care sales declined 5% in dollars and units. Only two segments recorded positive dollar results
for October 2009, according to The NPD Group. Sets and kits grew 6% in dollars and 2% in units, while hair care rose 1% in dollars and
3% in units.
Sets and kits, according to The NPD Group, had positive or flat dollar growth for all but two months—June, which was down 15%,
and September, which was down 5%. The remaining three segments—face, body and sun—all recorded dollar and unit declines. Sets
and kits and sun both saw increases in average price (4% and 2%, respectively). Face care was flat in average price, while body and hair
average price declined (8% and 2%, respectively), according to The NPD Group. •
More info: www.npd.com