Circana Unpacked

How can companies achieve real measurement, meaningful household growth, and true accountability in a fragmented, fast-moving marketplace? That’s one of the biggest questions and pressing challenges facing brands and retailers today. In this episode, Cara Pratt, President, Global Retail and Media, at Circana, is joined by DeeDee McCoy, Director of Omnichannel Marketing at Chomps, and David Parisi, SVP of Client Partnerships at Ibotta, to unpack the real barriers holding brands back from peak performance and what’s needed in the culture of measurement going forward.

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.

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.

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.

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.

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.

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.

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.