1、 2023 Nielsen Consumer LLC.All Rights Reserved.2024 Nielsen Consumer LLC.All Rights Reserved.State of Perishables|Midyear ReviewTop Perishable Trends in 2024 2024 Nielsen Consumer LLC.All Rights Reserved.Table of ContentsIntroduction3Key Perishable Trends5Meat Department8Bakery Department11Dairy Tre

2、nds14State of Fresh17Conclusion23Opportunities and Challenges21 2024 Nielsen Consumer LLC.All Rights Reserved.3IntroductionSource:NIQ Consumer Outlook 2024 vs.previous studies,US MarketQ:Compared to a year ago,is your household better off or worse off financiallyPerishables categories arent immune t

3、o consumer pressuresAs we navigate through 2024,the Perishables sector continues to be a dynamic and rapidly evolving segment of the FMCG industry.From fresh produce and dairy to meat and seafood to fresh bakery goods,Perishables play a critical role in consumer diets and grocery store profits.This

4、midyear review aims to provide a comprehensive analysis of the current state of the Perishables market,highlighting key trends,challenges,and opportunities that have emerged over the first half of the year.Whether you are a retailer,supplier,or industry analyst,this eBook offers valuable insights to

5、 help you stay ahead in this competitive landscape.Some of the key topics well cover in this eBook are:Overarching Perishable TrendsMeat,Bakery,Dairy,and Fresh Aisle InsightsKey Opportunities and ChallengesAnd more32%of Americans feel worse off,but less so vs.year agoThe first half of 2024 has been

6、marked by significant shifts in consumer behavior and market dynamics,driven largely by economic pressures and evolving health and sustainability concerns.Inflation has continued to impact pricing strategies and consumer spending patterns,with many shoppers prioritizing value without compromising on

7、 quality.At the same time,there has been a noticeable increase in demand for organic and sustainably sourced perishables,reflecting a broader trend towards health-conscious and environmentally friendly consumption.These factors have created both challenges and opportunities,necessitating a strategic

8、 approach to meet changing consumer expectations.2024 Nielsen Consumer LLC.All Rights Reserved.4Source:NIQ 2024 Consumer Outlook vs Mid-Year 2023 Survey,US MarketTop 10 concerns among U.S.consumers1Rising food prices 36%2Increased housing costs15%3Economic downturn14%4Global conflict/crisis escalati

9、on14%5Political unrest 13%6Increasing utilities13%7Global warming/environment10%8Ability to provide basics for family9%9Rising fuel/transportation costs9%10Personal welfare/happiness8%Rising food prices remains top of mind for consumers=samewas#2was#4was#11was#8was#3was#10was#5Ranking change vs.Mid

10、2023was#7was#6Concerns about geo-political crisis climbs to the forefront this year 2024 Nielsen Consumer LLC.All Rights Reserved.2024 Nielsen Consumer LLC.All Rights Reserved.5Key Perishable Trends 2024 Nielsen Consumer LLC.All Rights Reserved.6Sources:NIQ,2024 Consumer Outlook Report;NIQ,Total US

11、xAOC,YTD:17 weeks to April 27,2024Key Perishable Trends2.Private Label GrowthIn 2023,Private Label accounted for 19.4%of total FMCG value sales globally,with private label in the U.S.seeing a 17%share.Opting for Private Label is now a key saving measure for shoppers in 2024,with 27%of shoppers indic

12、ating that switching to Private Label is important to their cost-saving strategy.In the Perishables category,Private label growth is beginning to slow,opening up opportunities for more brands to recover market share going forward.This means pricing looks to be a key component of everyones strategies

13、 going forward.1.Inflationary Belt TighteningAfter a year and a half of price deceleration,the rate of FMCG prices started to rise again in April.Even though the U.S.economy is strong,consumers are still feeling the pinch,with 41%buying only what they need.Worse,year-to-date FMCG dollar growth conti

14、nues to slow with units flat versus a year ago.As 2024 continues,retailers and manufacturers must explore new avenues for growth,including innovation,promotional strategies,and catering to evolving consumer demographics such as an aging population and multicultural cohorts.Luckily,many Perishable br

15、ands are well-positioned to make these changes.The Perishables market is undergoing a transformative phase,driven by a confluence of factors that are reshaping consumer preferences and industry practices.Among the most significant trends is the impact of inflation,private label growth,and a heighten

16、ed demand for organic and sustainably sourced products.This shift is prompting retailers and suppliers to adapt,emphasizing transparency,ethical sourcing,and sustainability in their offerings.They are also focusing on the introduction of new products and adapting a more flexible pricing model.With t

17、hat in mind,here are 3 key trends impacting the Perishables market:2024 Nielsen Consumer LLC.All Rights Reserved.7Source:NIQ,Retail Measurement Services NIQ Product Insight,powered by Label Insight;Total US xAOC;Total Food&Beverage vs Better For segment;$%Change vs year ago;4-week trended through we

18、ek ending 12/2/23Key Perishable Trends3.Better For ShiftsNIQs Better For Segment goes beyond the“Natural Channel,”which,as defined by competitors,misses 90%of the actual Better For market,where Premier Fresh shoppers spend 8x more share of wallet.Better For products are sold in every retail outlet,s

19、o the impact of inflation was felt just as strongly in this segment.Luckily,like the overall Food&Beverage market,Better Better For products are shifting back from their inflationary levels.When it comes to understanding and winning with constrained consumers,its essential to take note of where the

20、population stands in terms of their perceived economic situation going forward.$%Chg YA|Food&Beverage vs Better ForInflation drove short-term shifts from wellness 2024 Nielsen Consumer LLC.All Rights Reserved.2024 Nielsen Consumer LLC.All Rights Reserved.8Meat Department 2024 Nielsen Consumer LLC.Al

21、l Rights Reserved.9Source:NIQ Total U.S.Omnisales Latest 52 Weeks Period Ending Apr.27,2024Meat Department TrendsIn 2024,U.S.Meat Department sales are more than$124 billion,up 1.2%over last year.But shifting consumer demand,inflationary pressures,and other factors that affect demand have interfered

22、with many brands growth,so smaller brands may be falling behind.Thankfully,consumers arent only motivated by the pressures of inflation.They have many other needs and demands that brands can leverage to grow.This means that understanding how consumers are shifting their focus regarding health and we

23、llness,sustainability,convenience,and inflation are key.Here are 3 key meat department trends:1.Less Demand for Plant-based MeatsIn 2023,15.5 million Americans were following a Vegetarian lifestyle,with around 2 million of those following a purely vegan lifestyle.For a time,this growing trend was sh

24、ifting grocery sales in many departments,including meat.However,by April 2024,alternative meats saw a 5.8%decline in sales YoY.Retailers are responding to this trend by limiting their offerings of plant-based meats and focusing more on their core meat products.As the year goes on,this shift will nee

25、d to be evaluated by brands operating in the space,and they may need to refine their product assortment to meet the needs of this changing market.2.Growing Interest in Ethnic MeatThe U.S.is becoming more diverse,and this is reflected in the growing demand for ethnic meats.Consumers are now more like

26、ly to purchase meats from different cultures.For example,sales of chorizo are up 9.3%over last year and up 33.7%in online sales.Retailers and brands are responding to this trend by expanding their meat offerings.This may be through the creation of entirely new product lines or adapting existing ones

27、.The key is to understand your target market on a regional or retailer level and intelligently focus your efforts on the areas where the most opportunity is.2024 Nielsen Consumer LLC.All Rights Reserved.10Sources:NIQ,2024 Consumer Outlook Report;NIQ,Total US xAOC,YTD:17 weeks to April 27,2024;NIQ Co

28、nsumer Outlook 2024,GlobalMeat Department Trends3.Convenience is KingAnother growing trend among consumers is that they are looking for ways to save time and make meal prep easier.This is leading to increased demand for pre-cut meats and pre-marinated meats.These offerings are also valuable for spec

29、ial events,which can be seen in the growth of meat party platters,which are up 7.5%over last year.Retailers are responding to this trend by offering a wider variety of pre-prepared meats.These may be private label offerings through the retailer themselves or branded products.By offering more conveni

30、ent solutions,meat brands have the opportunity to build a strong foundation for 2024 and beyond.Seek lower prices 82%Reduce overall spending 67%Switch products/brand 66%Switch stores56%Switch size 50%Prioritize needs31%Saving motivators for American consumers 2024 Nielsen Consumer LLC.All Rights Res

31、erved.2024 Nielsen Consumer LLC.All Rights Reserved.11Bakery Department 2024 Nielsen Consumer LLC.All Rights Reserved.12In 2024,Bakery is faced with some challenges.Bakery Department growth this year was purely inflationary with Unit declines driven by lost buyers and net losses from retained buyers

32、.Worse,Bakery base unit prices increased 4.9%compared to 3.8%in remaining food departments.This means that consumers are becoming more judicious in their spending,so retailers and brands need to adapt.Luckily,there are still opportunities for intelligent growth if you can identify the underlying cha

33、llenges your baked goods are facing.Heres what the Bakery looks like in 2024:Pie:The StandoutInflation prompted volume declines for all categories except Pie,indicating that the Pie category is doing something right to counter inflation.In fact,Pie saw a 9.1%growth in EQ over last year.Smaller porti

34、ons at lower absolute price points are fueling increased demand for Pie.Other bakery manufacturers should think about how to adapt their strategies to create new value propositions and consumption occasions that resonate with shoppers who are being morediscerning with their dollars.Volume Loss Origi

35、ns:Nearly every subcategory in the Bakery Department saw volume loss in the past year.80%of Bakery volume loss was from buyers reducing their consumption from last year.Additionally,Bakery Department Penetration is down-1.2 pts,leaving emerging and growth brands facing an uphill battle.Suppliers nee

36、d to think about regaining and increasing loyalty from their current buyer base,and they need to talk to retailer partners about strategies for driving more traffic to Bakery.The key will be to create new value propositions and consumption occasions that resonate with shoppers who are being more dis

37、cerning.Source:NIQ SnapView Bakery Department Purchase DynamicsBakery Department Trends 2024 Nielsen Consumer LLC.All Rights Reserved.Unit Price%ChangeTotal CPG:+2%Seafood-1%Meat+6%Deli0%Bakery-1%Dry Grocery+3%Frozen0%Pet Care-1%Tobacco +3%Floral-1%CheckoutGeneral Merch -4%Health&Beauty+3%Household+

38、2%Dairy 0%Produce+2%Alcohol+1%Baby Care +6%Department Inflation Heat Map+3%Higher than average +1-3%Average+1%Below AverageSource:NielsenIQ,Total US xAOC,4 weeks ending April 27,2024April 2024:Price increases for most CPG departments are decelerating but Meat and Baby Care continue to rise well abov

39、e average 2024 Nielsen Consumer LLC.All Rights Reserved.2024 Nielsen Consumer LLC.All Rights Reserved.14Dairy Trends 2024 Nielsen Consumer LLC.All Rights Reserved.15Dairy TrendsSource:NIQ Total U.S.Omnisales Latest 52 Weeks Period Ending Apr.27,2024;NIQ Webinar Whats Next in Wellness 2024With many A

40、mericans tightening their belts to focus on the necessities,the Dairy category has become the focus for many.As 30%of American consumers expect to spend more in the category going forward,total sales are starting to slip.In fact,Milk products have seen a 2.4%drop in sales revenue this year,with cows

41、 milk hit the worst with a 5.6%drop.However,this doesnt mean there arent opportunities in the category.Cheese is actually up YoY,seeing a 1.7%increase and Yogurt up 6.6%.Knowing where consumers are willing to spend more and how their wallets are being affected by continuing inflationary pressures is

42、 key to selling Dairy.The Impact of Alternatives:The alternative milk beverage industry is starting to lose steam,reaching$3 billion in total U.S.Omni Sales in the past year.Thats a 3.5%drop over last year.Though not suffering losses as badly as cows milk,this comes after a long period of strong gro

43、wth.This decline is opening up new opportunities for dairy manufacturers seeking to take back market share.Highlighting the benefits of dairy milk and its products and positioning it in contrast to the alternatives can go a long way to bringing shoppers back to the shelf.Health Takes Center Stage:Ac

44、cording to NIQs 2023 Shopper Health Study,American consumers are facing a slew of health concerns that are shaping their shopping needs.33%of U.S.adults are now considered obese,and many are theyre combatting it in new ways,like weight loss drugs or seeking out products that make claims like metabol

45、ism support.Unfortunately,many dairy products are seeing dips in sales as Americans pursue products that they deem more in line with their particular health needs.Overcoming this obstacle requires reshaping the narrative and better expressing the health and wellness benefits of your dairy products.2

46、024 Nielsen Consumer LLC.All Rights Reserved.56%56%46%48%55%54%53%51%In homeentertainmentFinancialservicesSocializingTransportationcosts2023202420%26%*33%33%38%38%44%Savings/InvestmentsHealth care visitsDry/CannedgoodsDairyFresh MeatFresh ProduceUtilities20242023HomeImprovement/dcorFood delivery/tak

47、eawaysClothing/ApparelOOHEntertainmentOOH Dining/Eating2023202416Solvency and survival needs will shape what categories remain central to 2024 American consumer spending intentions*=comparison data from mid-2023,instead of Jan 2023Source:NIQ Consumer Outlook 2024,compared to metrics from 2023 study(

48、or,Mid-year 2023 where required),US marketInterpreted as:“35%of US respondents plan to spend less on Out-of-home(OOH)Dining and Eating in the next 12 months,compared to 37%who said the same back in 2023.”U.S.Wallet shifts favor spending more on life essentials42%35%32%29%28%28%Grocery&household item

49、s39%(vs.42%)Spending moreSpending lessSame as before*35%37%34%29%30%37%35%30%29%30%25%2024 Nielsen Consumer LLC.All Rights Reserved.2024 Nielsen Consumer LLC.All Rights Reserved.17State of Fresh 2024 Nielsen Consumer LLC.All Rights Reserved.18Sources:NielsenIQ,Total US xAOC,4 weeks ending April 27,2

50、024;NIQ Report The Green DivideState of Fresh2.Consumers Want Sustainability92%of consumers say that sustainability is important when choosing a brand today.In the grocery store,products with claims like“organic”are more popular than ever,while new and emerging claims around regenerative agriculture

51、,carbon footprint,and responsibly sourced are emerging and growing rapidly.This trend can be very beneficial for fresh food brands,especially those that source their products locally,sustainably,or responsibly.Still,you need to do a good job of marketing your products around these topics if you want

52、 consumers to find you.1.Inflation Still MattersThe rate of food inflation has slowed down quite a bit,but its still at 2%,compared to only 1.1%in non-food departments.Very few CPG departments are immune to rising prices as inflation continues to hit all areas of the store,primarily driven by food d

53、epartments Dry Grocery+1%,Meat+2%,and Frozen+1%.Increased prices mean smaller basket sizes and more consumers seeking to eliminate products they deem non-essential.As a fresh food brand,you need to understand how to balance promotional sales,consumer needs,and margins to build long-term growth.For y

54、ears,there has been a growing trend toward fresh,locally sourced,and organic foods.As consumers become more aware of the impact of their food choices on their health and the environment,they take a more critical eye to their shopping.Though were on the other side of the pandemic,this trend will like

55、ly continue to grow through 2024 and beyond.However,inflation,climate change,and other factors may continue to impact the availability and quality of fresh foods.So,how do you keep shoppers invested in your brand when theyre getting mixed signals from the marketplace and facing their own challenges?

56、Here are 5 fresh food trends you need to know:2024 Nielsen Consumer LLC.All Rights Reserved.19Sources:NIQ Total U.S.Omnisales Latest 52 Weeks Period Ending Apr.27,2024;NIQ Consumer Outlook 2024,U.S.;NielsenIQ,Total US xAOC,Value Retailers(Mass+Club+Dollar)4 weeks ending April 27,2024 *Value Retailer

57、s Dollar Share of Market State of Fresh5.Big-Box and Value GainsTo help stretch their dollars,shoppers are turning to stores with lower prices.Value retailers sales jumped 4%in the past year,capturing 43.1%of CPG sales.This makes sense as 82%of U.S.Consumers say they are motivated to seek lower pric

58、es,and 56%say theyre switching stores to save.As retailers see the opportunity to grow,they will continue to enter new markets and increase competition.As a fresh food brand,you need to be aware of these shifts and align your pricing and promotion strategies accordingly.4.Slow Online GrowthThough 86

59、%of US CPG dollar sales are represented by“omnichannel shoppers,”fresh food and perishables have not made much progress in gaining traction online.For example,the total U.S.fruit market saw more than$49 billion in sales in the past year,but only$3.9 billion of that occurred online.Still,NIQs omni da

60、ta also shows that more food dollars are being spent in-store than online.Notably,within the U.S.,21%of online CPG food is being purchased on Amazon.If online is an avenue you want to build on,youll need to understand the ways consumers shop online and the difficulties that you may need to overcome.

61、3.Health&Wellness TrendsAccording to NIQs 2023 Shopper Health Study,American consumers are facing a slew of health concerns that are shaping their shopping needs.This,paired with the renewed focus on health that came from the pandemic,has revitalized the market for food as a source of wellness.Lucki

62、ly,many brands and retailers are acting to support this renewed focus on health.Many convenience stores and drugstores are increasing the amount of fresh food for sale.Fresh food brands can particularly benefit from this trend,especially when aligned to plant-based diets or when their offerings are“

63、organic,”one of the most desired product attributes.2024 Nielsen Consumer LLC.All Rights Reserved.20Consumer engagement with sustainability variesSayHow important is sustainability?Low association to any aspectBetter conditions for farmersGiving back to society Support of minoritiesReduced pollution

64、Almost all aspects from planet to peopleAll aspects from planet to peopleEmbrace importance with a focus on health and take some action“Walk the talk”Low awareness and priorityPassionate but struggle to put into practiceBasic awareness of sustainability but no strong motivation34%Skeptics14%Idealist

65、s22%Minimalists11%Healthy me&planet19%EvangelistsDoWhat actions do they take?MeaningWhat sustainability means to themUS results 2024 Nielsen Consumer LLC.All Rights Reserved.2024 Nielsen Consumer LLC.All Rights Reserved.21Opportunities and Challenges 2024 Nielsen Consumer LLC.All Rights Reserved.22O

66、pportunities and ChallengesHowever,these opportunities come with their own set of challenges.Meeting the rising demand for organic and sustainable products requires robust verification processes and supply chain transparency,which can be costly and complex to implement.Additionally,as consumers beco

67、me more price-sensitive amidst ongoing inflation,balancing affordability with the cost of sustainability initiatives can be a tricky endeavor for many businesses.Navigating these challenges successfully will require strategic planning,investment in technology,and a commitment to innovation on the ba

68、ck of accurate retail and panel data.Technology also offers significant opportunities for the perishables market.Advanced supply chain management systems and AI-driven analytics can optimize inventory levels,reduce waste,and ensure that products remain fresh from farm to table.Retailers can leverage

69、 these technologies to enhance their operational efficiency and improve customer satisfaction.Moreover,the integration of e-commerce and omni strategies allows businesses to reach consumers wherever they are,providing the convenience and flexibility that shoppers expect.By embracing digital transfor

70、mation,companies can create seamless shopping experiences that blend online and offline channels,capturing a larger market share.Perishables present a wealth of opportunities for retailers and suppliers willing to innovate and adapt to changing market conditions.One of the most promising opportuniti

71、es lies in the growing consumer demand for organic and sustainably sourced products.As more shoppers prioritize health and environmental impact in their purchasing decisions,businesses that can offer verified organic and ethically sourced perishables stand to gain a competitive edge.Additionally,the

72、 rise of plant-based and alternative protein products opens new avenues for growth,catering to the increasing number of consumers seeking healthier and more sustainable dietary options.23 2024 Nielsen Consumer LLC.All Rights Reserved.23NIQ can help you get a Full View of the marketWhen the market is

73、 shifting,you need to be on top of your game if youre going to come out on top.NielsenIQ offers emerging and growth brands access to the same best-in-class,accurate data and high-quality insights that Fortune 500 brands leverageat a price customized for their budgets.We also know that businesses at

74、different stages have diverse needs.Whether youre looking to nail your next retailer pitch,are expanding distribution,or need to defend your turf,we have the data and tools you need to succeed.Some of the solutions we can provide include:POS&Shopper DataProduct Attribute TrendsOmnichannel Sales Data

75、Demand ForecastingPricing&Promotion OptimizationAssortment OptimizationExpert Insights into Market TrendsAnd MoreWhat You Can Do to be Successful in 2024 and BeyondSee Our Emerging Brand SolutionsLearn More About NIQ 2023 Nielsen Consumer LLC.All Rights Reserved.2024 Nielsen Consumer LLC.All Rights

76、Reserved.About NIQNIQ is the worlds leading consumer intelligence company,delivering the most complete understanding of consumer buying behavior and revealing new pathways to growth.In 2023,NIQ combined with GfK,bringing together the two industry leaders with unparalleled global reach.With a holisti

77、c retail read and the most comprehensive consumer insightsdelivered with advanced analytics through state-of-the-art platformsNIQ delivers the Full View.NIQ is an Advent International portfolio company with operations in 100+markets,covering more than 90%of the worlds population.For more information,visitNIQ.com.For more insights: