With dollar growth of 2.4% across food, drug and mass channels including Wal-Mart (FDMW) and flat sales excluding Wal-Mart (FDMx), 2004 was a lackluster year overall for the U.S. CPG industry.
The year was characterized by shifts in spending more so than real industry growth: supercenters and dollar stores continued to grow at the expense of traditional channels, low carb products grew at the expense of higher carb products, and heavy price increases on staples (eg. milk, eggs) took a toll on sales of other “non-essential” categories such as general merchandise.
However, there were several bright spots revealing positive momentum across key categories, including low calorie/light products, natural/organic products, several healthcare categories and convenient cleaning products.
This report provides an in-depth analysis of 2004 performance, the underlying consumer trends driving spending shifts -- value, health and wellness and convenience-- and likely growth opportunities in 2005 given where the trends are headed.