CPG Sales Surged 19% During Pandemic

Try and buy. Consumers did just that after COVID-19 slammed the US economy, according to a recent study by NCSolutions. Nearly half (47%) of Americans indicated they tried new brands and categories since the pandemic began. Consumers are most open to trying a new snack food brand with 52% reporting they’re most likely to explore their options in this category. After snacks foods, consumers are most willing to experiment with beverages and cleaning products: 44% and 43% of consumers were most likely to try new brands in these categories, respectively.

“The increase in CPG spending coupled with the openness of consumers for new brands marks a clear opportunity for brands. Since the start of the pandemic, our teams at NCSolutions have identified several trends emerging with respect to brand loyalty: consumers are purchasing their favorite brands in greater quantities and at higher frequencies than before the pandemic, but they’re also more willing to experiment with competitive brands as they tire from pandemic living,” said Linda Dupree, CEO, NCSolutions. “In response to these trends, many brands are refocusing their advertising efforts through the lens of brand loyalty. Some brands are doubling down on both their most loyal and newest buyers, focusing on these audiences to retain them, move them up the loyalty ladder and prevent them from straying to competitive brands.”

NCS purchase data reveals consumer packaged goods spending increased substantially in December (20%) compared to November, while remaining 16% higher, year over year. This higher spend is attributable to consumers increasing their average basket size per shopping trip in the weeks leading up to the winter holidays in preparation for celebrations. Grocery spending remained elevated at 22% during what NCS has termed ‘the Home-Confined Phase’ of the pandemic (measured from March 22-December 31).