Total Consumer Report: December 2018
Change is upon us, and it’s time to embrace it.
As 2018 winds to a close, we’re left pondering how to stimulate organic growth, beyond just dollars, in the movement of product volume in particular. Today, our industry is being rocked by a shift away from in-home food and beverage consumption, and this has caused challenging conditions to say the least. In fact, the gap is shrinking in terms of how consumers allocate their in- and out-of-home food expenditures. While American consumers still claim to spend twice as much on in-home consumables as they do on dining out, when compared to 2011, Americans are spending nearly 2% more on dining out, and 2% less on food and beverages at home.
It’s pivotal to understand the drivers of consumer intentions in order to encourage enhanced spending. The mindset of Americans has shifted dynamically in the last decade, and though consumption has been flat in stores, there’s been upticks in optimism that appear in favor of future FMCG growth.
Today, optimism is the highest we’ve seen in nearly a decade for Americans, and this is largely thanks to overall positivity being felt toward job prospects, personal finances and sentiment toward purchasing power. In the third quarter of 2011, American consumer confidence was more than 10 points lower than the global score of 88. Consumer confidence levels above and below a baseline of 100 indicate degrees of optimism and pessimism, respectively. But as we’ll continue to explore in this report, there’s still room to grow by harnessing this optimism and encouraging FMCG purchases.