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    Online Exclusives

    Pandemic Lifts Cleaning & Personal Care Sales in 2020

    IRI/BCG’s Growth Leaders report shows COVID-10 shifts helped CPG industry grow 10.4%.

    Pandemic Lifts Cleaning & Personal Care Sales in 2020
    COVID changed shopping habits.
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    Christine Esposito, Managing Editor03.05.21
    What do White Claws and Germ-X sanitizer hand sanitizer have in common? Both contain alcohol and the makers of each have been named leaders in the IRI and Boston Consulting Group Growth Leaders in CPG study, its ninth annual report.
     
    According to the IRI and BCG report, the total CPG industry grew roughly 10.4% in 2020, significantly outpacing the prior three-year compound annual growth rate (CAGR) of 1.8% due to COVID-related shifts in consumer shopping and consumption behavior. 
     
    While Bimbo Bakeries USA was the growth leader among large companies with more than $6 billion in 2020 sales, RB was among the top five leaders in the sector as in addition to edible products  and beverages, home care  products cleaners, paper goods were among the key growth categories. Procter & Gamble was No. 8.
     
    Among midsize companies with $1-$6 billion in 2020 sales, Mark Anthony, the maker of White Claw alcoholic beverages, recorded the most growth.
     
    Among smaller companies, those with less than $1 billion in 2020 sales, Vi-Jon Labs, a 100% employee-owned company that touts Germ-X hand sanitizer, was the growth leader. Nail and lash company KISS came in at No. 7, sun care lifestyle brand Sun Bum was No. 9 and Raw Sugar Living was No. 12.


     

     
    Although larger CPGs grew in 2020, they still ceded share to smaller players. Big brands were often out-of-stock in high-demand categories, and growth in the convenience channel slowed, which impacted large CPGs. In fact, the study found that small, extra-small and private label CPG manufacturers gained significant market share over larger manufacturers in 2020.
     
    IRI and BCG’s study also identified pandemic-related shifts in consumer habits, some of which will linger longer than others.
     
    “As a result of pandemic-driven changes in consumer habits, many CPG companies now face the difficult task of predicting how those habits will continue to evolve as consumers adjust to the new normal,” said Dr. Krishnakumar (KK) S. Davey, president of strategic analytics for IRI. “In addition to highlighting the companies that most successfully drove growth through the pandemic, our report helps companies prepare for the year ahead by predicting the future trajectory of consumer trends that emerged in 2020. By providing insight into which trends are likely to cease and which are here to stay, we are enabling companies to adjust their strategies and plan appropriately to continue growing in 2021.”
     
    IRI and BCG contend that on-the-go and on-premise spending will regain share from center store items like frozen, shelf-stable ingredient and in-home indulgence as consumer mobility increases and shoppers scale back on in-home consumption.
     
    In addition, in-store product discovery that slowed in 2020 as shoppers focused on getting in and out of the store quickly due to COVID-19 concerns will return in 2021.
     
    As one might suspect, e-commerce was among the “Accelerating” trends. In addition, IRI says that self-care, societal care, convenience and indulgence trends will continue well into 2021.
     
    According to the researchers, bifurcation of spend has also accelerated. There’s been an increase in premiumization via large CPG innovation and hyper-targeted small CPGs alongside continued development of small and own brands at multiple price points, said IRI.
     
    New and “reverting” trends highlighted by IRI include right-sized packs. Consumers will look for “right-sized” products—think smaller, single-serve, multipack—as they revert to pre-pandemic consumption patterns.
     
    The “Growth Leaders in CPG” study can be downloaded here.
     
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