Losses of nearly $3 billion! The shortage of daily necessities in the United States is serious

Market research firm NielsenIQ found that CPG categories, including the top 10 categories of CPG consumer goods , suffered nearly $3 billion in sales losses due to stock-outs during the pandemic .

CPG (Consumer Packaged Goods) refers to daily necessities such as food, beverages, clothing, tobacco, cosmetics and household items.

Chicago-based NielsenIQ said Wednesday that an analysis of the period from May 2020 to February 2021 showed that among the top 10 CPG categories with the largest sales misses , losses exceeded $2.93 billion during the period .

For most Americans, toilet paper and paper towels saw the biggest losses, at $835.6 million and $682.9 million, respectively . Following those categories were all-purpose cleaners with $320.5 million in lost sales , dog food with $235.5 million in lost sales , and cat food with $209.22 million in lost sales.

Additionally, Oracle Advertising’s The New Consumer report found that consumers are trying more new CPG brands , with 43% of consumers new to brands in 2020 compared to 32% in 2019. Repeat purchase rates are also on the rise, increasing from 23.3% in 2019 to 24.7% in 2020.

Baby boomers dominate online shopping

Surprisingly, Baby Boomers are leading the growth in online shopping, with 5.7 times more consumers shopping online for CPG-related products in 2020 than in 2019. Oracle ’s analysis suggests there is even more room for growth in this market , as new Baby Boomer online shoppers spend only half the amount compared to current Baby Boomer online shoppers.

Meanwhile, new online shoppers for Generation X grew 4.7 times, while those for Millennials and Generation Z grew 4.3 times. Oracle noted that online spending on CPG products increased year-over-year across all age groups.

The increase in dining at home during the pandemic has baby boomers opting for home cooking, while younger shoppers are leaning toward convenience foods. Oracle's report shows that baby boomers often buy "meat and potatoes" meals (31.1%). Millennials (29.4%) and Gen Z (26.2%) tend to prefer ready-to-eat meals, such as frozen meals .

CPG segments such as fresh meat, vegetables, oils and spices have been experiencing continued high demand. Oracle found that bakery products such as flour, cake mix and frosting continue to see high demand.

CPG

Online Sales

USA