Insights: Your world is changing - Retail channel fragmentation

It’s no secret that over the past 30 years we have seen significant shifts in U.S. households. Homes consisting of a married couple with children under 18 decreased by 50%, and one-person households increased by 10%¹. Along with that, consumer incomes are experiencing a shift as well. Households with annual incomes of less than $60,000 account for 60% of households in the U.S., and their share of income sources is gradually decreasing².

These changes have naturally lead to shopping habits evolving. Today’s consumers are heavily influenced by their shopping occasion, which affects their store choice³. Retail channel fragmentation has led to a decrease in traditional stock-up trips and an increase in fill-in, quick trips, and immediate consumption needs. Consumers on each of these have a different trip mission.

While these shifts have brought on challenges for CPGs, they have also created opportunities. Your product’s packaging can be a critical enabler of your brand’s success by addressing these new consumer and channel needs. In fact, consumers say that packaging drives purchase decisions more than online reviews, TV ads or recommendations from friends⁴.

CPGs have the ability to deliver packaging innovation to market that caters to consumers’ changing economic situations and evolving shopping behaviors. In doing so, they can deliver growth and stay ahead of the competition.

How can CPGs get a better grasp of emerging trends and real fundamental changes? Learn more.

Sources: 1. US Census; 2. Kartar Retail; 3. Nielsen Consumer Panel; 4. Contract Packaging Association, 2014 Conference “2014 Packaging Trends” by digital surgeons creative agency