Dive Brief:
- An IRI Consumer Connect survey revealed that 70% of consumers believe their household finances will improve in the next six months, according to Grocery Headquarters.
- A majority of consumers are willing to pay a premium for the convenience of shopping online and for both higher quality and highly differentiated packaged goods
- After the recent presidential election, 33% of 18-to-34 year olds and 38% of 35-to-54 year olds feel their personal finances will improve in 2017. Still, one-third of consumers remain concerned about the future of their finances. Out of these deal-seeking, pessimistic shoppers, 85% will buy private label products to save money, compared to 81% of the overall population.
Dive Insight:
If consumers are willing to spend, retailers need to make sure they have the items shoppers desire. Some recent studies have shown consumers are willing to pay more for products that align with their personal beliefs on animal welfare and environmental sustainability, so retailers that stock products such as grass-fed beef or cage-free eggs may see more bang at the register.
Nielsen’s 2015 Global Health & Wellness Survey showed that shoppers were also willing to pay more for healthy foods, so offering more healthy ready-to-eat meals and unique produce items should also keep consumers walking through the door.
Manufacturers can do their part by improving the design and functionality of packaging, as premium packaging has been shown to greatly influence consumers into higher prices to be more valuable.