A shift towards larger package sizes and premiumization, trends created during the pandemic, will ease in 2021 as consumption moves away from home, according to research from IRI, reports Food Dive. Demand for CPG products will continue to be “unprecedented” in 2021, however, IRI predicts that 65 percent of categories will see sales declines from 2020.
The firm also predict that as more items are regularly in stock, consumers’ price sensitivity will also increase and drive them towards value and private-label brands and “right-sized” packages. However, premiumization, indulgence, taste exploration, health and wellness, and sustainability will continue to drive sales in some categories.
To sustain success, IRI advises CPG companies to focus on innovation, revenue management, and executing at retail in 2021. Full Story
Related: Online CPG Sales Could Hit $109 Billion; Report: Over Half of Consumers Switched to Less Expensive Brands Amid Pandemic.