Sometimes growth opportunities lie adjacent to your own business. Looking beyond your core areas of expertise can help you capitalize on larger trends and turn a low-growth or even stagnant market into one full of new and emerging opportunities.
Beauty care struggled in 2017, with the department contracting by nearly 2% in dollar sales year-over-year. Aligning product innovations with the right ingredients can help bolster sales where it’s needed most. Consider avocado oil as an example. At a high level, there are increasingly more households purchasing products with avocado oil than there were in 2015. Penetration has increased by 5 percentage points in the last two years alone.
Oil from this superfood has done wonders across a number of related categories. While 2017 was a challenging year for categories like margarine and spreads (down by 5.4% in sales), hand and body lotion (flat at 0.9% in sales) and hair conditioner (down 1.3% in sales), variations that included avocado oil saw outsized growth. Today, avocado oil is in 11% of all FMCG categories*, with over 30 different categories represented. It has long-since had an impact on the food space for its healthful benefits and versatility…but it’s now driving impressive growth in beauty, health care, oral care and more.
Some of the fastest-growing categories that now include this popular ingredient include hair care, hand and body lotion, oils, butters and spreads, vitamins and supplements, condiments, and salty snacks. Collectively, FMCG products with avocado oil have seen a 31% boost in sales since 2016. Growth may have started in food, but it’s now spread throughout the store.
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*Note: Excludes general merchandise, alcohol and tobacco departments. Source: Nielsen Product Insider, powered by Label Insight, 52 weeks ended Dec. 30, 2017