The news: Starbucks is lowering prices in China for some drinks as the country’s relentless price wars force the struggling coffee chain to shift gears. Our take: Starbucks’ pricing actions are necessary to keep it competitive in a challenging market. But it is increasingly struggling to keep up with the likes of Luckin Coffee and Cotti, which are not only considerably cheaper but also better able to meet Chinese consumers’ rapidly shifting tastes. With conditions in the world’s second-largest economy unlikely to improve this year, Starbucks will have to find a way to become nimbler—and more affordable—to keep within striking distance of its rivals.
The trend: Consumers who take weight loss drugs are eating less and consuming healthier foods when they’re on the medication. Our take: This behavior change is driving a slew of food sellers and CPG brands to develop product lines and reformulate items with GLP-1 users in mind.
The trend: Consumer packaged goods brands are prioritizing profitability as macroeconomic headwinds reshape consumer behavior. For example, Kimberly-Clark is selling a majority stake in its international tissue business to Suzano and P&G is cutting roughly 15% of its global nonmanufacturing workforce. Our take: While short-term headwinds may be driving CPG companies’ actions, portfolio reassessment is a valuable exercise in any economic climate. Those that take the time to find efficiencies that enable them to emerge stronger and more agile will be better positioned for long-term success than companies simply focused on cutting costs.
Almost three-fourths (74%) of consumers prefer to shop in-store for alcoholic beverages versus only buying them online (7%), according to March data from ThinkNow Research.
Nonalcoholic beer set to overtake ale as world’s second-largest beer category: Younger consumers drive the growth as they consume less alcohol.
“There are lots of shiny new pennies in marketing, so it's very easy to get distracted,” said Nicklaus Hasselberg, VP of growth marketing and ecommerce at Every Man Jack, at The Lead Summit in New York City last week. “It’s about ‘What do we reasonably believe will have the biggest impact on our business?' And let’s do it as well as we can."
Consumers’ belt tightening was good news for Campbell’s in FYQ3: The consumer packaged goods company benefited from a surge in home cooking, now at its highest rate since the pandemic.
Consumers are reluctant to curb beauty spending: Many are turning to the category for solace amid uncertainty, or see it as an essential purchase.
Mondelez accuses Aldi of “blatantly” copying packaging for private labels: The snackmaker’s frustration comes as store brands gobble up market share.
E.l.f. Beauty strikes $1 billion deal to acquire Hailey Bieber’s Rhode: The move could reignite slowing growth and boost its appeal to Gen Z and more affluent shoppers.
Adverse weather and poor crops have driven up staple costs: Coffee is up 58% over the past three years, and cocoa soared 316%—with tariffs further compounding price pressures.
Amazon breaks its silence on grocery business: CEO Andy Jassy is “very bullish” about retailer’s prospects as more customers stock up on everyday essentials.
Though beauty has remained a relatively resilient category amid rising prices, tariffs could put a damper on that as they take hold. 29% of US adults say they’ll likely cut back on beauty/personal care spending if tariffs raise prices, according to February 2025 data from CivicScience. That’s why retailers like Walmart, Amazon, and Target are boosting their beauty offerings to drive sales and increase customer loyalty. Here’s how.
US sales of private label grocery brands grew 3.9% in 2024, outpacing the 1.0% growth of national brands, according to the Private Label Manufacturers Association (PLMA).
Drivers overwhelmingly prefer voice assistants over drive-thrus, presenting a ripe opportunity for restaurants to cash in on convenience and curbside cravings.
US-UK trade deal eases barriers across key sectors: Our FAQ explains how the pact may benefit exporters and affect economic growth.
Instacart has launched a new standalone app, Fizz, to help groups plan, purchase, and pay for party snacks and drinks.
Drunk Elephant’s sales plunge as Gen Alpha appeal dims: The brand’s reliance on the fickle audience has damaged its standing with older consumers.
Starbucks’ dominance is under threat as Dutch Bros’ growth surges: The coffee giant is struggling to stem a sales slump as the latter’s colorful drinks and service win it more customers.
Consumers pulled back on dining out in Q1: Restaurant Brands faced headwinds but saw an April rebound, while Krispy Kreme is changing course to regain momentum.