Following a grueling 2005 that was marked by a devastating hurricane season and far-reaching new labeling regulations, the CPG industry took stock during the relative calm of 2006.
Reverberations from the events of 2005 carried over into the new year. Gas and oil prices spiked, and sugar crops took a beating. This translated into fewer shopping trips for consumers, and rising costs for manufacturers and retailers. Eventually, these rising costs made their way to consumers, with average price increases of 4.1% in 2006 across CPG categories.
A combination of price and innovation drove CPG industry growth of 2.5% in 2006 – a marked improvement over 2005’s 1.6% growth rate.
IRI’s January 2007 Times & Trends explores performance across categories and channels over the past year, key factors influencing growth, and what to expect in 2007 and beyond.