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62 Pages·2011·3.89 MB·English

U.S. Consumer Trends

APA

2011 ANNUAL MEETING
Version 19
Today’s agenda

• Consumer trends
• Health & Wellness
• Sustainability
• Summary & closing thoughts
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Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Key 21st Century Macro Trends
Slowing Older
Population Consumers with
Growth New Needs
Declining
Income Declines
% of HHs with
& Concentration
Children
Immigration Rising Rate of
& Growth in Obesity & Cost of
Ethnic Families Healthcare
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Copyright © 2011 The Nielsen Company. Confidential and proprietary.
A challenging future between…
Very diverse consumer segments…
- Multicultural
- Aging
- Economically distressed
…and a shrinking pie
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Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Older segments are more frequent shoppers
& more deal prone
Total Retail Channels
Shopping Trips Per Household Basket Ring Dollars Per Trip
175
$55
$50
150
$45
$40
125
$35
100
$30
Greatest Gen Boomers Gen X Millennials
Greatest Gen Boomers Gen X Millennials
Basket Ring Dollars Per Household % Dollars on Deal
$7,500 28%
$7,000 26%
$6,500 24%
$6,000 22%
$5,500 20%
Greatest Gen Boomers Gen X Millennials Greatest Gen Boomers Gen X Millennials
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Greatest Generation: Prior to 1946; Boomers: 1946-1964, Gen X: 1965-1976, Millennials: 1977-1994
Source: Homescan®, a service of The Nielsen Company;
Total U.S. 52 weeks ending 12/25/2010; U.S. Consumer Trends
excludes gas on or Rx only trips
Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Big differences in category spend – some driven by
diverse households, other by diverse preferences
Where is your category or brand driving sales?
Annual $ Per Hhld* Greatest Gen Boomers Gen X Millennials
Baby Food 44 48 124 168
Carbonated Beverages 90 133 131 111
Cereal 62 69 89 82
Detergents 44 53 57 46
Hair Care 28 40 46 36
Ice Cream 37 37 33 28
Pet Food 203 216 157 119
Vitamins 111 90 66 57
Wine 121 124 81 62
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Greatest Generation: Prior to 1946; Boomers: 1946-1964, Gen X: 1965-1976, Millennials: 1977-1994
*Among category buyers
Source: Homescan®, a service of The Nielsen Company;
Total U.S. 52 weeks ending 12/25/2010; UU..SS.. CCoonnssuummeerr TTrreennddss
UPC-coded items only
Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Retailers are focused on Seniors
Rite-Aid offers 20% off your purchases the
Kroger: Seniors receive a 10% first Tuesday of the month, plus all your
favorite benefits, including:
discount OFF of your total purchases
on the first Wednesday of every month. 10% off your purchase all other Tuesdays
All Seniors, 60 years and older are 10% off Rite Aid Brand products every day
eligible! (southern Illinois, southern 10% off cash prescriptions every day
Indiana, select KY & Nashville, TN
Enrollment in Living More is free and easy
area stores Only!)
If you're 55+, you can save an
additional 10% on your food bill (less
V.I.P savings, taxes, and coupons)
the first Wednesday of every month.
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Source: Company websites
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Copyright © 2011 The Nielsen Company. Confidential and proprietary.
AARP redefining its audience
• “Today AARP sends AARP The
Magazine to all members, but
sends slightly different versions to
those 50 to 59, 60 to 69, and over
70.”

• The covers are the same, but…
“The illustration for older readers
features a man who is bald rather
than graying, a woman wearing a
long skirt rather than jeans and,
resting between them, a cane.”
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Source: The New York Times & AARP
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Copyright © 2011 The Nielsen Company. Confidential and proprietary.
Portion sizes for one or two, but what else?
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Source: MultiAd Kwikee
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Copyright © 2011 The Nielsen Company. Confidential and proprietary.
How is your organization preparing for
change?
Projected Population Growth From 2010 to 2050
+1%
+42% +56% +142% +167%
White
Total Black Asian* Hispanic
Non-Hispanic
*Excludes American Indian, Alaska Native, Hawaiian & Other Pacific Islander
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Source: U.S. Census Bureau Population Projections
Source: U.S. Census Bureau Population Projections U.S. Consumer Trends
Copyright © 2011 The Nielsen Company. Confidential and proprietary.