There are more stories to share from Circana’s New Product Pacesetters, our annual roundup of the top-selling CPG new products. In this special episode, Joan Driggs and Lisa Maas dive into the role social media and influencers have in new CPG product launches. From grandma bands and pickleball tournaments, to merch and in-store engagement, learn what successful connection looks like. Highlights: Marketing Strategies: Learn about effective marketing efforts, including social media campaigns, influencer partnerships, and grassroots initiatives that drove these products to success. Consumer Engagement: Understand how CELSIUS Essentials performance drinks, Liquid Death Iced Tea, and Barebells protein bars are connecting with their target audiences through unique and relatable content. New Product Pacesetters: Read the full report and watch the webinar replay to learn more.

For the past six years, Circana has collaborated with NYU's Stern Center for Sustainable Business to produce a report on sustainability in the consumer packaged goods (CPG) marketplace. While sustainability-marked products in the U.S. continue to gain share, their research shows that shares of sustainability-marked products are much larger in the UK and Germany. This episode dives into the comparison between the U.S., UK, and Germany, offering insights and inspiration for CPG manufacturers and retailers. Highlights: Many categories with low shares of sustainability-marked products in the U.S. have high shares in EMEA. U.S. manufacturers should revisit claims that matter to shoppers. A market leader moving to sustainability drives the trend for the category. Failing to do so opens the door for challenger brands, which could erode loyalty and share. In Europe, much of the increase in sales of sustainable products is driven by retailers. European retailers are incentivized to adopt sustainable practices, with regulations providing both incentives and penalties. European consumers consider the lack of sustainability to be a barrier to trial.

There are more than 150,000 convenience stores across the U.S., and while multiple chains make up the majority, these typically small-format stores can vary widely from urban to suburban to rural. To some consumers, it might be the store where they purchase auto fuel. For others, it serves as their local grocer or a place to grab morning coffee. Circana’s Anthony Dostal, director of retail insights for the convenience channel, talks about the state of the convenience channel, including consumer behavior, competition, and strategies for growth. Highlights: While location and price remain the primary influencers of convenience store selection, the quality of products and services is becoming an increasingly significant factor. Inflation and economic headwinds are affecting discretionary purchases and driving consumers to look for better value. The competitive arena for c-stores is vast, and includes other convenience stores, grocery, dollar, club, and quick service restaurants. Foodservice is a top opportunity for regaining traffic and sales in c-stores, but other opportunities include expanding private label offerings and leveraging loyalty programs. Some retailers are leaning into digital engagement, including ordering and home delivery.

Household spending has shifted due to high inflation and economic uncertainty. Consumers are prioritizing essential items like groceries while often forgoing discretionary purchases, including games, apparel, and prestige beauty. Circana’s Sally Lyons Wyatt, global EVP and chief advisor for consumer goods and foodservice insights, and Adam Mellott, vice president of consumer and shopper insights, provide valuable insights into the current state of household spending, the role of retailers, and the resilience of consumers during challenging times. Highlights: Consumers are carefully weighing their options at the shelf, which doesn’t necessarily mean the end of indulgent and premium purchases. Many retailers, notably within the dollar channel, are putting value – including convenience and affordability – front and center, which is proving attractive to a wider audience of shoppers. Urban and rural consumers are reacting to economic uncertainty in different ways, which will impact product assortments, oftentimes within the same retail chain.   While tariffs haven’t impacted CPG prices yet, consumers will be tracking prices carefully. Innovation – from product development to assortment – can be critical to locking in consumer loyalty during challenging times.

While they differ in size of revenue, U.S. CPG Growth Leaders all found innovative ways to connect with fragmented consumer communities using a range of growth levers. Sally Lyons Wyatt and Cara Loeys dive into the strategies that leading CPG companies deployed to achieve healthy growth in 2024, including the Five Cs of Success: community connections, comprehensive value, catering to multi-pronged wellness, collaborative growth, and company culture.   Key takeaways: Community connections: King Arthur Baking leaned on the experiences of consumers during COVID-19 to build a thriving baking community. This approach highlights the importance of engaging with consumers across different touchpoints and supporting them through innovative products and resources. Comprehensive value: Companies like Lifeway and Bausch & Lomb offer multi-functional products that provide a wide range of benefits. This strategy emphasizes the importance of delivering value that goes beyond price, enhancing convenience, experience, and well-being. Collaborative growth: Good Culture and Daisy Brand are reimagining their products and partnering with influencers to engage younger consumers. Innovative use of AI: The Coca-Cola Co. and e.l.f. Beauty are at the forefront of experimenting with AI to enhance productivity, efficiency, and consumer engagement. From AI-generated commercials to social media bots, these innovative approaches are revolutionizing how companies connect with their audience. Direct-to-consumer engagement: Company collaborations are resulting in successful, out-of-the-box solutions, many of which leverage digital sales and online promotional events to create buzz and engage loyal consumers.

Globally, licensing is a $365 billion business. The U.S. comprises about 60% of the market. Kristen McLean, senior executive director, The Circana Entertainment Knowledge Group, takes listeners into the world of licensing. Hear insight into the elements of successful licensing deals and what to consider when partnering with another brand. Highlights: There are four main types of licensing: character, personality or lifestyle, co-branded, and limited-time offer (LTO). 11% of licensing involves food, both CPG and foodservice. Successful licensing should include brands that overlap in appeal, but also work to expand the audience for both brands. Before diving into licensing, validation is critical. Consumer research can help ensure a licensing idea resonates with the target audience.

As a share of the total CPG/FMCG market, private brands vary across major global regions. In the EU, private labels account for nearly 39% of total market value and 47% of unit sales, while in the U.S., they represent 22% of dollar sales and 24% of unit sales. Sally Lyons Wyatt and Ananda Roy talk about retailer investments for private brands, including being category-focused, consumer-obsessed, innovative and of high quality.  Highlights include:  Successful retailers treat private labels like brands, cross-promoting them with name brand products and partnering with notable chefs on product development.  In EMEA, private brands have pulled back price promotional efforts and instead are focusing on promoting premium quality at a competitive price to name brands. While the U.S. lags other global regions in overall private label share, some categories, notably in the fresh perimeter departments, have a high share of total CPG sales.  The rise of the term “zero consumer” in Europe describes consumers who seek better value but show zero loyalty to any retailer or established brand. 

Inspired by their recent Top Trends in Fresh webinar, Jonna Parker, team lead, Circana’s Fresh Foods group, and Kelly Krumholz, perimeter client insights consultant, provide a “refresh” on trends and opportunities impacting fresh grocery departments. While opportunities for growth continue to take root (GLP-1s, we’re talking about you!), headwinds – including being out-marketed by center store – temper growth. Tune in to learn more.  Highlights: Well over half – 56% – of all trips to retail stores for food and beverage are quick trips, which usually involve only one or two departments.  Health-minded consumers account for about one-third of overall food and beverage spending. Fresh departments, especially produce and deli, are crucial for consumers who prioritize healthier eating and transparency in food sourcing. Fresh foods could benefit from suggestive selling and marketing – especially via social channels – based on consumer motivations and occasions. Fresh departments should capitalize on weekend dinners, which tend to include more scratch cooking.

Dive into the cutting-edge innovations and trends from CES 2025 with Circana’s tech analysts Paul Gagnon, Ben Arnold, and Mike Crosby. This episode explores the transformative impact of artificial intelligence and more on consumer and B2B electronics, the evolution of smart home technology, and the future of wearable devices. Technology is reshaping not just consumer experiences, but also manufacturing, go-to-market strategies, and retail.  Key Highlights: AI is being incorporated into everyday products like smartphones, PCs, and TVs, enhancing the user experience through features like picture and sound quality optimization. But one watchout is that innovation needs to remain focused on tangible benefits for the end-user. Another pain point is managing consumer concerns with privacy.  Smart home devices, including smart doorbells and security cameras with AI capabilities, appliances and robotic vacuums are seeing enhanced functionality.  The next generation of smart glasses will drive new use cases and applications in personal health and augmented reality.  Retailers have a significant influence on the development and go-to-market strategies of tech products, particularly in the TV industry.

The impact of GLP-1 (glucagon-like peptide 1) usage for weight loss on the CPG food and beverage, nonfood, and other industries is just beginning. It’s going to influence product innovation, store assortments, consumer engagement, and more. Sally Lyons Wyatt discusses groundbreaking research on GLP-1 use for weight loss, including how users shift their purchase habits while using the medication and after they stop taking it.  GLP-1 users generally purchase more than nonusers, with notable shifts in purchases among weight loss users. For example, categories like gum and breath mints help with a side effect of bad breath, while an uptick in tea purchases is tied to soothing an upset stomach. Categories such as frozen foods decreased in sales during usage of GLP-1s. Sales of recommended foods, including vegetables, eggs, and nuts, increased. The ripple effects of GLP-1 usage go far beyond CPG to include wearable technologies such as fitness trackers, apparel, beauty products, beverageware, and more.

Carbonated soft drinks and bottled water are the universally preferred beverages across generations. From there, nuances emerge that shed light on the life stage priorities of different cohorts. Similarly, differences in product choices are seen by household income level and even ethnicity. Tatiana Lopez Aranzazu, consumer and shopper insights consultant at Circana, discusses differences across demographic cohorts and uncovers opportunities for manufacturers and retailers.  Highlights:  Energy drinks are popular among most generations. But they are less relevant for boomers, who prioritize probiotic and low-sugar dairy drinks.  Functional beverages, particularly those delivering energy, weight control, and better-for-you attributes, are growing in popularity.  High-income households prefer beverages with protein and probiotic claims. Low-income households lean toward energy drinks.  Consumers are most likely to shop the grocery channel for most of the top beverage attributes. But mass and supercenters lead for immune defense claims, and club stores are the top channel for protein claims. 

While hydration is still key, consumers want more from their beverages. Sally Lyons Wyatt, Circana’s global executive vice president and chief advisor, consumer goods and foodservice insights, shares extensive beverage research on out-of-home and in-home trends across tap water, morning beverages, cocktails, and satiety beverages.  Highlights Consumers seek more personalization than ever, from flavoring tap water to interesting portable beverage containers. Marketers can see what consumers are turning to by watching book sales. Hint: Books on body cleansing and detoxing are trending.  In-home and out-of-home beverage trends are shifting. Consumers purchase portable beverage containers for out-of-home convenience. But they’re also purchasing specialty coffee makers, juicers, and smoothie makers to offset higher prices at foodservice.  Beverages deliver varying levels of nutrition, indulgence, satiety, and entertainment — with and without alcohol. The ripple effect of beverages goes well beyond what we’re drinking to how we’re consuming and where. Opportunities exist for marketers who consider new occasion moments, especially surrounding sports. 

Despite inflation, consumers are optimistic about their ability to spend a little more on gifts, foods, and beverages for upcoming holiday occasions. Sally Lyons Wyatt, Circana’s global executive vice president and chief advisor, consumer goods and foodservice insights, and Marshal Cohen, Circana’s chief retail officer, share their insights and observations for what’s in store (literally!) this holiday season.  Highlights:  Inflation has eased, but consumers still anticipate paying a little more for holiday groceries. Similarly, consumers expect to spend an average of 2% more on holiday gifts this year versus 2023.  Optimism is wrapped in practicality this year, with consumers willing to pay for needed or practical items. But they’ll also spend more to elevate experiences. Notably, consumers report they’re more likely to make impulse purchases and self-gift this year.  Retailers are ready for a positive gifting season. Black Friday is back, complete with doorbusters and retailer exclusives. And shoppers can expect a better in-store experience with deals and gift inspiration.  Shoppers of CPG and gen merch are focused on value, and retailers of all stripes will work to frame their offerings in terms of quality, price, and relevance to the shopper. 

For more than 30 years, Circana has conducted extensive audits of the food items found in America’s kitchens, from spice cabinets and pantries to refrigerators and freezers. Results from the 2024 audit reveal our kitchens have fewer items, pointing to our growing desire for convenience. Darren Seifer, industry advisor, consumer goods & foodservice insights at Circana, shares observations on changing behaviors and opportunities to meet consumer needs.  Highlights:  Consumers are keeping around 140 items in their kitchen, down from 160 in 2020.  There’s been an uptick in heat-and-eat solutions. Kitchen appliances such as air fryers and pod coffee makers are responding to the need for speed.  Conversely, there’s been a decline in food appliances like deep fryers or coffee grinders.  Manufacturers of CPG items and appliance makers have an opportunity to support the success of meals, with proper temperature cooking, simplified recipes, and products that deliver flavor and convenience. 

The outlook for fall and winter holidays is bright, even for CPG items experiencing persistent inflation. Consumers are willing to spend a little more to make the holidays special, but it’s up to retailers to facilitate this. Circana’s Jonna Parker and 2010 Analytics’ Anne-Marie Roerink discuss supporting holiday traditions and encouraging the adoption of new seasonal flavors. Highlights When holidays fall during the week, such as Halloween 2024 landing on a Thursday, retailers should encourage consumers to stretch the celebrations.  Provide ideas for full-on parties and quick, fun meals to feed kids before trick-or-treating.  Start holiday promotions early to encourage consumers to come back for a second or third purchase. Retailers can add to the excitement by playing up seasonal flavors beyond pumpkin and mint, such as pecan, cinnamon, maple, and more.  Beyond holidays, retailers should focus on special occasions and promote affordability and inspiration for leftovers, especially proteins.

Cottage cheese. Grapes. Cucumbers. Each of these categories — among others — has seen tremendous sales lifts based on inspiration from social media influencers. Jonna Parker, team lead of Circana’s Fresh Foods Group, and Anne-Marie Roerink, president of 210 Analytics, talk about the opportunity to lean into social media. Explore how you can inspire and entertain young consumers who are still learning their way around the kitchen and the grocery store.  Highlights:  Gen Z and millennials might be more engaged in social media, but every generation is looking for inspiration.  High inflation is working in grocery retail’s favor, as more consumers avoid restaurants and look for more affordable meal options. Using social media to help consumers save is a big opportunity.  Any product soaring in popularity is replacing another one. How can retailers, brands, growers, and shippers generate new occasions or bring excitement to existing occasions?

Retailers, brands, and services can support consumers around the world on their physical, mental, and social health journeys. Sally Lyons Wyatt, Circana’s global EVP and chief advisor, Consumer Goods & Foodservice Insights, shares well-being research highlights from industries as diverse as books, food, beauty, apparel, consumer tech, pet, toys, and more. Consumers’ pursuit of well-being is strong, and the opportunities to lean in and support them are many. You might just learn how to support your own well-being goals.  Highlights:  Not one of the three pillars of well-being — physical, mental, and social — exists in a silo. Brands, retailers, and services should consider opportunities outside their own lane to promote their offerings, including cross-merchandising opportunities with complementary products.  Well-being is a global concern. While regional differences exist, there are many universal views, including the benefits of physical fitness, food as medicine, mental health awareness, and the value of community engagement. 

U.S. consumers under the age of 35 will experience similar life stages as previous generations, but they will never mirror the grocery shopping patterns of older consumers. As the most ethnically diverse and tech-savvy population, they are inspired and moved by infotainment. They also have the unique ability to lean into their personal moods and appetites, answering in the moment, “what am I hungry for?” Jonna Parker, team lead, Circana’s Fresh Foods group, and Kelly Krumholz, perimeter client insights consultant, talk about stark generational differences. Learn why it’s important to start solving for the needs of shoppers aged 35 and younger, who soon will be the majority.  Highlights  Shoppers under the age of 35 have been shaped by the acceleration of smart phones, the explosion of social media, and the COVID-19 pandemic.  Younger consumers are interested in cuisines like Japanese, Korean, and Cuban. This is a stark contrast to those of older generations, who prefer Mediterranean.  While it may have been the case for older generations, Gen Z and younger millennials prove the grocery store is not the only place to buy perishables.  Shoppers under the age of 35 under-spend in fresh. Most of their food dollars are spent on center-store items.  Young shoppers are motivated by relevance and experience. Messages that invoke feeling or speak to mood are more likely to hit the mark than low price. 

When it comes to meals, U.S. consumers are having a 2020 moment, believes Darren Seifer, our industry advisor, Consumer Goods & Foodservice Insights. The percentage of meals sourced from retail for home consumption is nearly 87% in 2024, giving us a vibe of at-home behaviors during the pandemic. However, how we’re getting to those meals and what’s on the table is where shifts are occurring. Jonna Parker, team lead for our Fresh Foods Group, says grocery retail might be winning, but it’s not the stock-up of the pandemic times. Instead, it’s just-in-time shopping for specific meals, often with a view to how that meal will be extended to another occasion. Highlights:  With persistent high inflation, consumers routinely try to stretch their food budget, from buying smaller amounts that fulfill a meal or two, to packing a lunch for work or eating what’s on hand to avoid waste. Retailers – and even operators – should embrace their role of curating assortment and making suggestions for meal solutions, especially for Gen Z, who haven’t landed on their weekly routines.  Approaches to meals change dramatically during the week. Easy one-dish meals might be the answer for a weekday, but weekend meals can be complicated, from-scratch affairs.  We have identified 6 billion annual occasions where consumers tell us they table their budget in favor of a celebration. This behavior helps explain positive sales of premium products and even the success of fast casual restaurants, both of which deliver quality and experience. 

Circana has been chronicling changing consumption behaviors in its Eating Patterns in America research for 39 years. David Portalatin, Circana’s senior vice president and industry advisor for food and foodservice, shares how insights from our research inform go-to-market strategies and innovation across CPG manufacturing, grocery retail, and foodservice. David also shares some of the biggest shifts taking place in recent generations, including how Starbucks reinvented the coffee occasion even as coffee consumption at home was declining. Does anyone remember the after-dinner cup of coffee? Highlights: “Healthonomics” describes how consumers are balancing healthy choices amid persistent high inflation. Many consumers look for tiered offerings and base their purchases on their most desired attributes. Restaurant traffic is down, but restaurants will prevail. Consumers continue to place value on the food experience and service enjoyed while dining in restaurants. A ham sandwich has been the top lunch choice for 30 years or more. But the types of ham available, the emergence of artisanal breads, and different gourmet spreads have drastically changed the way it can be consumed. Where there’s innovation, there’s growth. Keep the innovation pipelines flowing.