The news: Americans’ eating and food-buying habits have changed more in the six years since the COVID-19 pandemic than in the previous 50 years, Bob Nolan, Conagra’s senior vice president of growth science, told Reuters.
That shift has left consumer packaged goods (CPG) companies scrambling to keep up as rising prices, GLP-1 use, and changing tastes drive households to rethink what goes in their grocery baskets.
That was evident in General Mills’ earnings: While fiscal Q1 net sales of $4.4 billion beat expectations for $3.35 billion, they still declined 3% YoY. Volumes at its North America retail, pet, and foodservice businesses also fell, pointing to softer demand across its portfolio despite efforts to woo value shoppers with lower prices.
How brands are adapting: With loyalty no longer assured, CPGs have to work harder for shoppers’ attention and dollars.
Flavor innovation. Consumers are seeking more complex and diverse flavor profiles, a reflection of growing familiarity with international cuisines and shifting tastes among younger consumers. Sweet-spicy combinations such as chili lime are on track to generate $1 billion in snack sales this year, while pickle flavors are set to drive $1.8 billion in sales, according to Conagra’s 2026 Future of Snacking Report.
Health and wellness benefits. Adding protein, fiber, or other nutrients can give shoppers another reason to choose a product and make a higher price easier to swallow. Forty-three percent of US consumers are seeking foods or beverages with more protein, while 41% crave improved hydration and 31% want more fiber, according to a May Ipsos survey.
Shoppers are also responsive to simplified, more natural ingredients. For example, Heinz Simply, a version of the brand’s iconic ketchup that uses cane sugar instead of high-fructose corn syrup, posted its 15th consecutive month of double-digit growth, with sales volumes up nearly 14% this year, Kraft Heinz told Bloomberg. While more expensive, these products are attracting younger customers, and that success is driving Kraft Heinz to introduce cleaner formulations for other product lines, such as Jell-O and Kool-Aid.
Revamped packaging. Packaging can help brands highlight functional claims and make products more appealing. One in five in-store shoppers says packaging influences their purchase decisions, according to a January Frank Mayer and Associates survey. Adding a wider array of pack sizes can also better meet shopper needs as more opt for smaller portions or buying in bulk. AB InBev is aiming to address both sides of the equation with smaller pack sizes and larger ones that are cheaper on a per-can basis, which the brewer hopes will make its offerings more attractive to infrequent beer drinkers, chief marketing officer Marcel Marcondes told Reuters.
Recommendations for CPG brands and marketers: CPG product innovations need to be backed by marketing investments so that shoppers know how new variations differ from previous iterations and competitors’ offerings. At the same time, companies have to be strategic with those marketing dollars to ensure they can truly stand apart in a highly contested landscape.
Food and beverage shoppers are most receptive to ads that match their food and beverage needs, according to our inaugural Pulse of the Consumer: Food and Beverage survey. But they are also wary of ads that feel too promotional or unrealistic, with two-thirds saying they make them less likely to trust or buy the product.
At the same time, brands shouldn’t lose sight of customers’ price sensitivities. Messaging that highlights promotions, discounts, or other cost-saving opportunities stands to perform well as shoppers look to trim grocery spending.
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