The food channel saw more conservative growth overall compared to online, dollar and club channels — continued signs that consumers are searching for value when making purchases. Online grew by 16%, the dollar channel grew by 14% and the club channel increased 12%, while the food channel grew by 7% as of January compared to last year, according to the report.
CPGs continue to show resilience even in the face of economic downturn, IRI noted. Non-edible CPG products saw a 10% change increase in dollars spent compared to 2021, while edible CPG products saw a 9% increase. The increase in dollars comes even as units sold have fallen. According to the IRI report, nonedible CPGs sold 1% fewer units while the edible CPG category sold 3% fewer units.
Categories that saw declines in both dollars and units sold during 2021 include footwear, juvenile, housewares, small appliances, books, video games and consumer electronics. The automotive, office supplies, and clothing and accessory category saw growth in dollars sold, but like CPGs, moved fewer units. The prestige beauty category was the only category that saw growth in both dollars and units sold, according to IRI.
While consumers are favoring private-label brands — they grew their share in 75% of all food and beverage categories — premium-label products were basically flat — down 0.6% in the fourth quarter last year. Still the premium segment, especially alcohol and energy beverages, has some room to grow, according to IRI.
Overall, IRI expects a continued focus on promotions throughout 2023, especially in the perimeter departments in grocery.