The recession has prompted a shift in US consumption patterns, with a tendency among consumers to trade down likely to be “stickier” than in previous downturns, analysts have suggested.
According to research from Sanford C. Bernstein and management consulting firm McKinsey, a “new normal” has developed – with changing consumer behaviour likely to threaten growth for CPG companies.
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“Consumers are more willing to try out and stick to new behaviours given the steeper decline and longer duration of this recession, and retailers are faced with more difficult access to credit and shifting channels among consumers, which forces them to expand their value offering,” Bernstein’s Andrew Wood wrote.
The researchers suggested that the downturn has triggering “changes in ability to pay” and “changes in perceptions”, and CPG companies may need to respond via innovation or value re-engineering.
“CPG companies waiting for a return to normality following the recession may be disappointed as many consumers have tried cheaper products, and like them,” Wood added.
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