Consumers have shifted more their spending to dining out: But while restaurant industry sales are expected to rise 6.4% this year, the industry faces several challenges.
Retail media will be a $45 billion market this year and will continue to grow by about $10 billion in 2024, according to our forecast. Currently, the majority of retail media ad spend is driven by search. But the next phase will be driven by upper-funnel formats and in-store ad opportunities.
Instacart’s revenues and profits spiked in 2022, helped by its growing ad business: That could speed up the timeline for the grocery delivery company’s long-awaited IPO.
This year, we forecast retail sales of cosmetic and beauty products will reach $86.42 billion, a 7.6% increase from 2022. This increase will be driven in large part by in-store sales and luxury beauty categories. But going forward, technology may play a large role in driving online sales.
Forty-four percent of US adults plan to spend their normal amount on health and beauty products this year, according to a MetaPack survey. More than two-thirds said they’re not changing their spending on apparel (39%) or on DIY and gardening (34%).
The nonalcoholic beverage market has burst open, and many nonalcoholic spirits companies are pushing marketing beyond sobriety to overall health. “We’re not trying to stop anyone from drinking,” said Hebe Mills, marketing manager at Pentire Drinks. Instead, Mills says the alcohol-free brand is “making sure [our customers have] a really good-tasting alternative.”
We asked our analysts which companies they have their eyes on this year and why they’re positioned for potential success (or disaster). The Kroger Co., for example, is leveraging its digital offerings to scale its business, while Nike may pivot back to wholesale to stay competitive.
Instacart has had a busy few months. Besides scrapping its plans to go public, the company has cut its valuation a few times, trimmed its workforce, and explored other cost-cutting measures. That being said, Instacart has also made investments to bolster its business, including new technologies for merchants and expanded retail media offerings.
This year’s Super Bowl ads will be defined by big stunts, from FanDuel’s live Gronk field goal attempt (we won’t be betting on this) to whatever M&M’s is doing with “Ma&Ya’s candy coated clam bites” (these we would bet on). Here are five charts on Super Bowl advertising.
Consumers are trading down to value-oriented QSR brands: That trend helped Yum Brands and Subway post strong gains in Q4, while higher-priced restaurants like Chipotle disappointed.
Sick of disappointing retail news? So are we. Just like we’re sick of paying $6 for a carton of eggs. Some good news: US employers added 30,000 retail jobs in January, offering a big boost after a sluggish second half of 2022, when retail jobs fell for three consecutive months from September to November and were stagnant in December. Here are some more positive indicators.
Grocers are less willing to put up with price hikes as inflation eases: Whole Foods is the latest retailer to ask suppliers to lower prices to relieve pressure on consumers.
Pet sales are on the rise (thanks, in large part, to inflation). Consumers, who are increasingly shopping online, are seeking out premium health and wellness-focused products for the furry members of their family.
Walmart is undergoing a “much broader shift,” said our analyst Sky Canaves on our “Behind the Numbers: Reimagining Retail” podcast. Where Walmart was once seen as primarily a retailer, it’s pivoting into tech and services. Walmart’s business remains rooted in grocery, but through its retail as a service and Walmart+ offerings, it’s expanding that flywheel.
As many as 25 celebrities and influencers have launched beauty brands over the course of the last three years, according to Business Insider. While some (like Rare Beauty by Selena Gomez) have exploded, others (particularly those founded by social media influencers) are having a hard time finding their footing. What does it take to build a successful celebrity beauty brand?
Procter & Gamble is determined to push through price hikes: Despite falling sales volumes and softening demand, the CPG giant plans to continue raising prices to cover its costs.
Amazon-owned Whole Foods is in expansion mode: While its parent company looks to cut costs, the high-end grocer sees an opportunity to attract consumers as they return to in-store shopping.
Brands and retailers face threats to their pricing power: An FTC investigation into PepsiCo and Coca-Cola’s pricing practices, coupled with consumers’ cost sensitivity, could limit companies’ abilities to dictate prices.
Instacart will retain its status as grocery delivery king this year, capturing 73.0% of US digital grocery sales among third-party delivery services, per our forecast. However, competitors such as DoorDash and Uber will continue to eat away at its dominance.
It doesn’t take a CPGenius to understand that consumer packaged goods (CPG) have gone digital. “Winning at the digital shelf is more critical than ever” for CPG brands, according to our analyst Andrew Lipsman. Here are five charts on what retailers, marketers, and logistics professionals need to know about CPG.