Beyond Price: How CPG Brands Can Showcase Value When Times Are Tight

February, 2024

The situation:

While inflation slowed to 3% in November, 63% of Americans consider the economy a top priority – and many are expecting to spend more on packaged goods in the next 12 months, ranging from 40% on groceries, to 13% on beauty or alcohol.*

Times are tight and brands can’t always compete on price cuts alone. We looked into what adds value when it comes to packaged goods and how that may differ when it comes to individuals and categories.

What we found:

  • Growing Familiarity is Mission-Critical
    Familiarity is the most important factor when it comes to creating value (78% of adults), beating out quality.
  • Quality is in the Eye of the Beholder
    While familiarity adds value, quality is most likely to command a premium — 51% of adults are willing to pay more for a high-quality product. But there is no one-size-fits-all.
  • E-Commerce Is Becoming Entrenched
    More than 50% of adults cite convenience as critical to value – and this is no longer just about being on shelves.
  • Shoppers Need Your Help
    While increased online shopping should mean an easier time for all, more than 1 in 3 shoppers say finding the brand they want is a challenge and nearly 1 in 2 Millennials forget what they need to buy.
  • Go Beyond the Essentials to Convert Gen Z and Millennials
    While non-essentials may not be able to command a premium price, they contribute to value and can help tip people toward your brand.

For the full report, click ‘Download PDF’ below.

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