Posted on

Nielsen: 81% of Chinese consumers are optimistic about their financial situation

Nielsen: 81% of Chinese consumers are optimistic about their financial situation

Nielsen: 81% of Chinese consumers believe that their financial situation is better than five years ago. At the same time, 84% consumers think their financial situation is comfortable and they are able to spend freely.

Beijing, April 15, 2019 – According to Nielsen’s latest global premium products survey, markets around the world have faced fluctuating economic conditions in recent years, with many economies experiencing varying degrees of recession. Amid these unpredictable conditions, Chinese consumers feel optimistic about their financial situation, and 81% of Chinese consumers feel they are better off financially than they were five years ago, which is much higher than the global average rate (58%). Meanwhile, 84% consumers think their financial situation is comfortable or able to spend freely, which is 4% higher than last year. Compared with consumers in North America and some developed countries in Europe who feel pessimistic about their financial situation, Chinese consumer’s attitude toward their financial situation is more positive

“We know that Chinese consumers are confident in their futures. We see steady progress made in employment、international trade、investment、and various economic indicators suggesting strong reasons for consumers to have a positive outlook. With China’s GDP at 6.6%, and ranking first among the top five economies in the world, we expect Chinese consumers to remain optimistic in coming years,” said Andy Zhao, president of Nelsen China.

Driving factors behind optimistic financial attitude

Chinese consumers’ optimism about their financial situation is the result of the combination of personal economic conditions, employment expectations and consumer willingness. According to the National Bureau of Statistics, the economic situation of individuals has been greatly improved over the past five years. From 2014 to 2018, the average personal salary has increased by 29%, and personal disposable income has increased by 32%. It is estimated that in 2022, the average personal salary will increase by 33%, and personal disposable income will also increase by 24%.

According to National Bureau of Statistics, the number of new jobs in urban areas last year was 13.61 million, which was 123.7% of the annual target, created a new record high and exceeded 13 million for the sixth consecutive year. There are more job opportunities and larger expanded scale of employment. At the same time, according to Nielsen’s latest report on consumer trends, the employment expectation of Chinese consumers jumped from 70 points in 2017 to 75 points, and the consumption expectations in third- and fourth-tier cities are particularly high, The employment expectations of consumers in third-tier cities raised from 62 to 67, and in fourth-tier cities the employment expectations jumped from 65 to 71. From different geographical divisions, employment expectations are bright in the northern and western region. Employment expectations in the northern region have increased from 65 to 69 points in the third quarter, and at the same time, employment expectations in the western region have soared from 61 to 68 points, both achieved substantial growth.

 “With continuing urbanization, development of industry, and strong employment policies, consumers in lower-tier cities are gaining in affluence. At the same time, these lower-tier cities are growing in importance for retailers and manufacturers looking for China’s next wave of growth,” said Andy Zhao.

From the perspective of consumer willingness, Nielsen’s consumer confidence report data for the fourth quarter in 2018 showed that Chinese consumers’ spending willingness is 60 points, which had an increase of 3 points from 2017.

The pursuit of quality life is becoming a new point of consumption growth

While income and consumer sentiment is rising, consumption patterns of Chinese consumers are also changing. With the rapid development of e-commerce, logistics, and new retail formats, goods and services are easier to obtain than ever. The proportion of Chinese consumers in education, culture, entertainment and other categories is rising gradually. Among them, tourism, leisure and entertainment have an obvious upward trend. People’s willingness to consume has gradually changed from satisfying basic needs to improving the quality of life.

Nielsen research shows that in the past five years, 56% of Chinese consumers spend more on grocery fees, which means more and more Chinese consumers are willing to choose high-end daily necessities as a necessity for daily consumption. At the same time, Figures from the national tourism administration show that in 2018, the number of domestic tourists reached 5.5 billion, up 10.8% year-on-year, and the total number of inbound and outbound tourists reached 291 million, an increase of 7.8% year-on-year. This is consistent with Nielsen’s findings. There are 54% of Chinese consumers spend more on tourism. In addition, There are also other categories that attract Chinese consumers to increase spending, for example, leisure and entertainment (51%), eating out (50%), and education (50%). From this, it can be found that with the rapid growth of personal disposable income, consumers have growing demand for quality of life products.

“We see strong consumer willingness to spend and high demand for quality of life products and services. This is both an opportunity and a challenge for retailers and manufacturers. In a dynamic market like this, the key for winning is understanding the changing demand and behavior of the Chinese consumer,” Andy Zhao concluded.

ABOUT NIELSEN

Nielsen Holdings plc (NYSE: NLSN) is a global measurement and data analytics company that provides the most complete and trusted view available of consumers and markets worldwide. Our approach marries proprietary Nielsen data with other data sources to help clients around the world understand what’s happening now, what’s happening next, and how to best act on this knowledge. For more than 90 years Nielsen has provided data and analytics based on scientific rigor and innovation, continually developing new ways to answer the most important questions facing the media, advertising, retail and fast-moving consumer goods industries. An S&P 500 company, Nielsen has operations in over 100 countries, covering more than 90% of the world’s population.

 

Posted on

Nielsen report: Ten trends of China’s consumer market in 2018

Nielsen report: Ten trends of China's consumer market in 2018

Throughout 2018, China’s Consumer Trend Index stabilized at a high level. As of the third quarter of 2018, China’s average consumption trend index stood at 113 points, the same as last year and still far above the global average of 105. With the continuous development of China’s economic structure, consumption has become an important driving force for the market.

Statistics released by the National Bureau of Statistics show that consumption will continue to be the engine behind China’s economic growth in 2018. Consumer spending contributed 78 % to economic growth in the first three quarters of 2018, an increase of 13.8 percentage points over the same period of last year. Consumption has played an increasingly prominent role in boosting the economy, and Chinese consumers’ willingness to spend will continue to rise.

Nielsen research found that the FMCG market remained strong in 2018, with an overall growth rate of 14%, a significant increase from the 9% in the same period in 2017. Product innovation, consumption upgrades, physical store growth and e-commerce development are still the main driving forces for fast consumer products to maintain their dynamic growth. The contribution rate of new product sales to offline fast-moving goods growth is as high as 41%. With the continuous progress of structural reforms on the supply side and the further implementation of innovation-driven development strategy, the vitality of consumer innovation will continue prosper, which will become the main impetus for the long-term sustained and stable growth of China’s economy. Consumption upgrading reflects people’s pursuit of a better life. According to Nielsen data, consumption upgrading is still the main driving force for the growth of 84 % of fast-food categories. In a more complex and diverse consumption environment, we need to better understand the trend of people, product and place through data analysis.

So, what consumer trends will emerge in upcoming 2019, and how will these trends drive business innovation and marketing innovation? As a global measurement and data analytics company, Nielsen has uncovered China’s consumption trends in 2018, in order to help brands leverage these insights to achieve success in 2019.

Trend 1: The era of national consumption

Economic independence led to consumption independence, paying for interests and enjoyment of life is no longer only the privilege of small consumer segments. The former consumption pyramid gradually collapsed and has been replaced by the era of national consumption. Different consumer groups have their own preferred consumption areas. According to Nielsen’s consumption trend index research, clothing and dining out are among the top five consumption areas for all major consumer segments. Clothing is the preferred consumption area for girls and young married women, with 51 % of girls and 38 % of young married women willing to spend on clothing respectively. For the wealthy elderly, dining out (24%) is one of the main ways for them to enjoy their daily life, those elderly people are no longer as frugal for their families as before, but prefer to enjoy their retired life, with most of them (33 %) choosing to spend their holidays travelling.

Trend 2: The era of Rational Consumption

Today, when material life is unprecedentedly developed, consumers are becoming more mature. Many people are more inclined to rational consumption than blindly buying high-priced goods. According to data from the National Bureau of Statistics, in the first three quarters of 2018, the per capita disposable income of residents nationwide was 21,035 yuan. Compared with 2017, people reduced the proportion of consumption in food, alcohol, tobacco, clothing, housing, and spent more money on medical expenses, education, culture, entertainment, transportation and travel, showing a willingness to pay for services and experiences. Due to the emergence of more consumer goods, consumers are becoming more cautious when choosing fast consumer necessities. Rational consumption is manifested in two dimensions: cautious product selection and multi-channel price comparison.

From the perspective of product selection, Nielsen research shows that 39 % of consumers are still willing to continuously upgrade their consumption, saying they are willing to buy products of better quality with relatively higher prices, only 9 % of consumers are willing to spend more money on things that fail to reflect their identity and status, while 15 % of consumers are willing to buy products that satisfy the basic functions and are relatively cheap, but only 1 % are willing to buy low-cost products at the expense of product quality. Due to the emergence of more rational consumers, more quality-guaranteed but cost-effective product types are emerging, manifested in three aspects: simplicity, the rise of small brands, and smart promotion.

In the new retail era, prices are more transparent and price comparison is easier and more convenient. About 24 % of consumers will find cheaper channels to buy the products they want, and 31% of consumers will buy memberships for cheaper member prices. Another 65% will use group-shopping services and platforms for cheaper product prices. The growth rate of the group-shopping consumers is as high as 57% in 2018.

Trend 3: Reconstructing Social Connections

As consumers in first-tier cities increase in sophistication, more consumers, especially younger consumers, build their own social circles through common interests and topics, and have more trust in the evaluation and recommendations from others. About 56 % of consumers believe that recommendations from interest circles is an important reference. Therefore, smart e-commerce operators are constantly building interest-oriented social e-commerce to reach first-line consumers. Compared with consumers in first-tier cities, consumers in the third- and fourth-tier cities still prefer to trust recommendations by acquaintances and group-purchasing platforms, 66 % of consumers have bought products recommended by relatives, friends or colleagues. According to Nielsen data, monthly active users of social e-commerce increased 439 % in 2018, almost ten times the growth of second-hand e-commerce (46.4 %), cross-border e-commerce (38.5 %) and integrated e-commerce (21.9 %). 

Trend 4: Customized products win more consumers

With the improvement of people’s consumption level, standardized products can no longer meet the personalized needs of consumers. The market share of big brands is constantly being eaten by niche creative products. Diversification of categories and products upgrading are becoming new trends in the market. Products should be well-designed and customized to satisfy each type of customer, and targeted promotion is necessary. Creative new products are increasingly favored by the market. Creative marketing in line with brand positioning will continuously create competitive advantages for brands, accumulate brand assets and form unique brand symbols, which will ultimately stimulate purchase demand. 

Trend 5: The pursuit of the integration of beauty and functionality

According to Nielsen data, 64 % consumers will try new products because of the packaging. At the same time, consumers also have a higher pursuit of product functionality. For example, the average annual working hours of Chinese people rank first in the world (2100 hours). The phenomenon of hair loss caused by high-pressure life brings about functional demand for shampoo. Data shows that the growth rate of demand for anti-hair loss shampoo is 5 times higher than that of other types of shampoo, and the price is about 1.7 times higher than that of ordinary shampoo. Healthy lifestyle has become a consensus. 82 % of Chinese consumers are willing to spend more on healthy food and beverage products, much higher than the global average of 68 %. In 2018, the overall sales growth rate of food and beverages was 9.8 %, the sales of relatively healthy foods could reach 36 %, while the sales of some relatively unhealthy snacks decreased by about 3 %. 

Trend 6: Product innovation is accelerating, product life cycles are shortening

Tens of thousands of new products appear in the Chinese market, but up to 70 % of the new products can survive no more than 18 months. The four major innovation challenges faced by FMCG companies are: rapidly changing consumer demand (67 %), difficulty in creating strategic products with sufficient market potential (54 %), high cost but low return on investment (44 %), and faster product launching speed (33 %). 

Trend 7: Offline channels are recovering with small retail altered frequently

Nielsen’s research found that the channel upgrade changed dramatically and the alternation of shops accelerated. Physical stores still make up the primary retail channels for the market. The number of physical stores in all provinces generally continued to grow in 2018, with Jiangxi, Guangdong, Hunan, Sichuan and Guizhou these five provinces contributing 46 % of the store growth, mainly from small businesses. According to Nielsen, the total retail sales nationwide have resumed nearly double-digit growth since 2018, with small retail channels accounting for nearly 60 % of sales. The number of new small stores are opening fastest in Guangzhou, Chengdu, Zhengzhou, Hangzhou and Shenyang. Cities at the prefecture and county levels in Jiangsu, Shandong, Hebei and Hunan also showed a strong trend of new small store openings. Convenience stores, as one of the small channels, still have great room for development.

As for large-scale channels, Henan and Jiangxi provinces have experienced drastic changes in the channels for two consecutive years, Heilongjiang and Guangdong provinces having the largest upgrades in the channels in 2018 compared with other provinces. The growth of large supermarket channels in cities nationwide is mainly driven by fresh and high-quality supermarkets. The total number of high-quality supermarkets in the country has reached 364, increased by 26 % from 2017 

Trend 8: Improving shopping experience and product quality is key

The innovation of new retail format stores can break through geographical boundaries, redistributing online and offline shoppers, expanding the reach of retail stores, and maximize online traffic to physical stores. New retail has brought consumers better products and experiences, and the competition for in-store resources has intensified. This change is challenging for lower tier cities, where large stores have 7.5 % fewer single items than top tier cities, while small channels such as convenience stores have 29 % fewer single items. How to meet consumers’ demand for new shopping experience and product quality, while improving product assortment and optimize space layout is the top priority in the new retail era.

Trend 9: Digital Transformation of small business

In the B2B era, in addition to timely delivery, small businesses now have higher requirements for brand, dealer support in channel activities, new product support, and the frequency of agency visits. The B2B service mode is changing all the time. Although the eB2B (online business to business) platform has effectively penetrated into the traditional channels and the penetration rate in China has reached 22 %, it still needs to improve its service quality if it is to be compared with the traditional purchase channels such as wholesalers and distributors, with penetration rates of 90 % and 56 % respectively. The evolution speed of channel reform varies from region to region in China. The eastern region has the most customers of EB2B platform(26 %), and it is also the region with the most abundant channels. Shopkeepers in Northern China are also trying new platforms. The western region is now the most conservative area and still contains huge potential for development. Meanwhile, small businesses are also transitioning to digital platforms for communicating with and serving consumers. 8 % of the shop owners interviewed are trying to strengthen their relationship with certain consumers groups with online sales, delivery distribution and social platforms, and these shops’ online sales account for about 13 % of the market’s average daily sales.

Trend 10: Data is the key to integrating people, product and place

The rapid development of modern communication technology and the rising awareness of consumer have given today’s consumers unprecedented control and freedom over their choices. They not only have unprecedented powerful social communication capabilities, but also can easily create one after another hot products on Internet. More importantly, consumers are no longer limited to shopping in a single place, but have more choices to satisfy their needs in the most convenient and appropriate way. This is the fundamental reason for the transformation of the new retail era from “place first” to “people first “, and it is undoubtedly the most serious opportunity and challenge the entire retail industry will face. 

Retail enterprises not only need to accurately evaluate consumer needs, but also need to have the ability to catch the needs and meet their demand in the first place. However, China has a vast territory with more than 2200 cities and uneven development among regions. There are more than 3.2 million retail stores in China with the market landscape in constant change. In some urban areas, the annual rate of store turnover has reached 48 %. To stand out in retailing in such a complex market without complete and detailed data support is unimaginable. Integrating the data of the people, products and places by understanding consumer demand, store structure and layout, category trends by region, and accurately predicting the regional consumption potential and development trend, have all become a prerequisite for success in the new retail era.

ABOUT NIELSEN

Nielsen Holdings plc (NYSE: NLSN) is a global measurement and data analytics company that provides the most complete and trusted view available of consumers and markets worldwide. Our approach marries proprietary Nielsen data with other data sources to help clients around the world understand what’s happening now, what’s happening next, and how to best act on this knowledge. For more than 90 years Nielsen has provided data and analytics based on scientific rigor and innovation, continually developing new ways to answer the most important questions facing the media, advertising, retail and fast-moving consumer goods industries. An S&P 500 company, Nielsen has operations in over 100 countries, covering more than 90% of the world’s population. For more information, visit www.nielsen.com.

 

Posted on

Citrus sales climb 8.2% in value in US

Having overtakes berries, citrus is now America’s 2nd fastest growing fruit category.

The spend on citrus fruit in the United States grew 8.2% year-on-year in the 52 weeks to July 30 to reach just under $3 billion.

But Nielsen data shows the rise in the volume of retail sales of citrus over the same period was not so marked, coming in at 3.6% to push the total to slightly over 2.27 billion lb.

While limes, oranges and lemons made the biggest contribution to the sales volumes, mandarins (39.6%) and oranges (26.8%) were the top fruits in terms of spend.

Compared to the previous year, sales of mandarins in the US enjoyed the strongest growth in both volume (up 12.7% to nearly 244 billion lb) and value (up 15.3%).

Also logging growth were limes (up 5.9% in volume and 14.6% in value) and lemons (up 4.7% in volume and 9.3% in value).

There was very little change for oranges, with the volume inching up 0.1% to just over 660 million lb and virtually the same spend.

Although the volume of grapefruit sales fell slightly (-2.6%) this year, the dollar value climbed 4.2%. Tangerines suffered the greatest fall, plummeting 26.7% in value and 16.1% in volume.

Specialty fruits, which make up a relatively small chunk of the citrus fruit market, also dropped both in volume (-11.6%) and value (-7.6%).

Source: Nielsen 

Posted on

China’s new – and healthier – eating trends

As consumption continues to grow in China, consumers are willing to pay more for foods without undesirable ingredients and are actively seeking all natural, organic foods.

As consumption continues to grow in China, consumers are willing to pay more for foods without undesirable ingredients and are actively seeking all natural, organic foods.

That’s a summary of a recent survey by Nielsen which reveals Chinese consumers are increasingly opting for specialised diets addressing their desire to eat organic, low-fat, low-carb foods or the need to eliminate ingredients based on food sensitivities, allergies or personal convictions.

In a press release, Nielsen said that about 70% of the Chinese respondents in its new Global Health and Ingredient-Sentiment Survey said they follow a diet that limits or prohibits consumption of at least some foods or ingredients, which is higher than that of global average (64%). Furthermore, 82% of them said they would pay more for foods without undesirable ingredients, also much higher than the global average (68%).  

However, consumers’ changing needs are not being fully met yet, since only 40% respondents are satisfied with the current healthy food choices.

Be an ally in the pursuit of wellness

Nielsen Greater China president Yan Xuan said this is a significant opportunity for food retailers and manufacturers but they need to “identify high-potential segments and the drivers of engagement for these consumers and, then tailor their messages and products accordingly.”

Generally speaking, Chinese consumers prefer low fat (35%), low carbohydrate (35%), low sodium (35%) and low sugar foods (23%) .

Consumers wish there were more all natural (67%), organic (55%) and genetically modified organisms free foods (52%) on shelves. The most undesired ingredients are artificial ingredients such as artificial flavors (73%), preservations (73%), colors (71%), sweeteners (58%); antibiotics or hormones in animal products (63%); and genetically modified organisms (57%).

Nielsen said most consumers choose not to purchase foods and drinks with certain ingredients because they believe it is harmful to their health. What’s more, consumers also regard some foods as natural medicines. Approximately 73% percent Chinese respondents said they actively make dietary choices to help prevent health conditions such as obesity, diabetes, high cholesterol or hypertension.

Transparency is also important – 77% of Chinese consumers feel more positively about companies that are transparent about where and how products were made,raised or grown (vs. 73% globally).

“The consumption upgrade that is taking place in China highlights the growing pursuit of wellness. According to our research, health, safety  and wellness have already become the top attributes that impact consumers’ purchase decisions. Price will no longer be as important as quality and healthiness,”” Xuan said.

Image: by Calvin Teo – Own work, CC BY-SA 3.0, https://commons.wikimedia.org/w/index.php?curid=1684596

 

 

Posted on

China’s love affair with online shopping and convenience stores

Nielsen research shows the lure of cheaper goods online is seeing more and more Chinese embrace ecommerce — particularly via smartphones. This trend and the increasing popularity of convenience stores are together eroding the market share of superstores and supermarkets and making them evolve.

The penetration rate of convenience stores and online shopping in China has jumped to 32% and 38% respectively from last year’s 19% and 35%, according to a Nielsen report.

The global performance management company says in terms of sales and penetration, superstores and supermarkets are losing their market share to convenience stores and online platforms, as more and more people, especially the young, prefer to use these two emerging channels, which are more convenient.

According to Nielsen China vice president Rachel Ma, Chinese consumers used to shop mainly at hyper/supermarkets when stocking up on household basics. But fewer do that now, preferring to get what they need at convenience stores or online, she said.

“Generally speaking, consumers are purchasing less at brick and mortar stores – basket sizes have decreased,” she said.

Price increasingly important to online sales

The main factors driving Chinese consumers to choose online shopping are cheaper prices, the ease of price comparison and delivery service.

Indeed, almost seventy percent (68%) of respondents go online shopping when there are sales. And the lure of cheaper goods was cited by nearly two-thirds of those surveyed by Nielsen as the reason they buy things online, up considerably from 42% last year.

And more than half of the respondents — up from just 15% the previous year — said they prefer online shopping platforms because they make it easier to compare prices.

Another 54% of respondents said they shop online because of the delivery service, up from 42% last year.

Nielsen says sales and promotion are still effective ways to also attract consumers and that online shopping platforms have been ramping up their promotional efforts of late. The penetration of shopping festivals is up to 95% and along with the mushrooming of shopping festivals and various kinds of promotions, the price war is among various ecommerce platforms is becoming fiercer.

It also warns that competition is getting fiercer among online shopping platforms due to product homogeneity, requiring companies to differentiate themselves and build competitive advantages.

Convenience makes mobile e-commerce king 

One of the most interesting changes to note is that in the last year, the mobile has overtaken the PC as China’s most popular device for online shopping. According to Nielsen, 81% of online shoppers use smartphones while just 59% use desktops and 57% use laptops. The overriding reason for the popularity of mobile shopping is convenience — 71% consumers say they find mobile devices more convenient than PCs. What’s more, 52% of the respondents said they prefer mobile devices because of the convenience of mobile payments, a rise of 10% year-over-year.

According to the China Electronic Commerce Information Center, the number of Chinese online payment users had reached 416 million by December 2015 — an increase of 112 million, or 36.8% — since the end of 2014. And mobile payment usage also soared last year, with the number of users reaching 358 million, an increase of 64.5%. The percentage of netizens who use mobile payments increased from 39.0% to 57.7%.

Superstores must offer pleasant shopping, attractive promotions

Nielsen research shows the penetration rate of hypermarkets and supermarkets did increase slightly in 2015, by two and one percentage points respectively, to reach 78% and 82%, and the frequency of visits by customers remains stable. However, the average shopping basket value fell from 172.4 RMB in 2014 to 162.7 RMB.

The fact that the sales and penetration growth rates for convenience stores and online shopping are outpacing those of traditional superstores and supermarkets is forcing the latter to transform so as to better meet consumers’ changing needs. They also have to adapt to the fact that the rise of online platforms has helped clue up consumers. These increasingly savvy shoppers are paying closer attention to promotions and how pleasant their shopping experiences are in store. Nielsen says the latter this can be harnessed by such stores to competitive advantage.

Friendly service, a wide selection of products, convenient location, an organised assortment and clean environment are the other factors which most influence superstore and supermarket shoppers.

Underlining the importance of location and brand image, 19% of the respondents said they had visited newly opened hyper/supermarkets in the past six months and convenient location (55%) and a good reputation (46%) are the main reasons they go to a new market.

“Therefore, hyper/supermarkets should focus on promoting brand image, interesting promotional activities to retain customers. In addition to that, opening new stores and exploring online platforms to attract new consumers are also important,” Nielsen said.

JB

Source: http://www.nielsen.com/cn/en/insights/news/2016/Nielsen-convenience-stores-and-online-shopping-become-major-consumption-ways.html

Image: By Mcy jerry at the English language Wikipedia, CC BY-SA 3.0, https://commons.wikimedia.org/w/index.php?curid=16985897

 

Posted on

Dole salad kits win innovation prize

Dole Chopped Salad Kits has been chosen from among nearly 3,500 consumer products for a Nielsen Breakthrough Innovation Award for 2016.

Dole Chopped Salad Kits has been chosen from among nearly 3,500 consumer products for a Nielsen Breakthrough Innovation Award for 2016.

In a press release, Nielsen said this year’s 18 award winners met its rigorous requirements for distinctiveness, relevance and endurance.

In Nielsen’s Breakthrough Innovation report this year, Dole vice president of marketing CarrieAnn Arias said Dole had set out to create a bagged salad that was not just good, it had to be ‘craveable’.

It also aimed to deliver a salad experience “that was indulgent…but not unhealthy.”

“We approached the challenge as one of enabling a restaurant-quality experience at home,” she said.

Dole experimented with 50-60 different ingredients and an even greater variety of dressings, Arias said, underlining how complex its product development process was.

It also paid close attention to packaging, finding that a narrower bag helped keep the ingredients better distributed vertically, making for a much better at-shelf visual than the standard pillow bag.

“We have now created a runaway success that is transforming the produce section – selling over $100 million in its second year and growing strong at more than 115% in the past year.

“One of our biggest challenges is to keep up with growth, not run out of kale (no joke!), and continue to innovate to address consumers’ increasing demand for more and different ‘craveable’ salads.

“We will continue to stay close with our consumers, who are extremely active on social media, collaborate with our retail partners, and monitor evolving trends in the restaurant scene,” she said.

 

 

Posted on

Americans spend $170m more on table grapes

Nielsen figures show that the grape category was worth $2.7 billion in retail sales in the United States in the 52 weeks to May 28 this year, a figure 6.7% higher – equal to  $169.6 million – than that for the same period a year ago.

The fresh table grape category was worth $2.7 billion in retail sales in the United States in the 52 weeks to May 28 this year, a figure 6.7% higher – equal to  $169.6 million – than that for the same period a year ago.

Nielsen figures also show that the volume of fresh table grapes sold at retail also increased, rising 6.2% to a total of more than 1.21 billion pounds.

Indeed, there was not just growth in the overall grape category but in all subcategories, and in both volume and value.

Red grapes account for about half of America’s total spend on grapes and half the total grape volume sold at retail there. This sub-category grew 5.2% in value to $1.38 billion – boosting the total spend on grapes by $67.8 million – off a volume up 4.7% to 636.14 million pounds.

But it was white (green) grapes that made the biggest contribution to growth in the grape category in the last year in absolute terms. Though accounting for a smaller share of the overall grape category – 40.2% of the total volume and 41.2% of total value – white grapes generated 53% of the increase in spend (compared to 40% for red grapes), equivalent to more than $90.1 million.

Americans spent a total of nearly $1.12 billion at retail on white grapes over the year to May 28, which was 8.8% more than in the previous year. Similarly, the volume of white grapes sold was up 8.7%, to 489.2 million pounds.    

As for black (blue) grapes, the growth here was more modest, namely by 4% in value to $185.8 billion and by 3% in volume to 82.26 million pounds .

The ‘other’ subcategory saw the highest rate of growth in both value and volume at retail, shooting up 21.4% in spend to $19.56 million and 10.3% in volume to 6.7 million pounds.

And the ‘mixed’ subcategory logged the second highest growth rate, with a 14.5% upswing in value to $7.7 million and a solid 9.8% in volume to just over 3 million pounds.

 

Main image by Maja Petric via Unsplash (all photos published on Unsplash are licensed under Creative Commons Zero

JB

 

Posted on

Surge in cantaloupe sales in the US

Driven by a nearly 57% increase in the number of cantaloupes sold, overall retail sales of melons in the United States grew 8% year-on-year in volume in the 52 weeks to May 28 to reach over 2.2 billion.

Driven by a nearly 57% increase in the number of cantaloupes sold, overall retail sales of melons in the United States grew 8% year-on-year in volume in the 52 weeks to May 28 to reach over 2.2 billion pounds.

But against this backdrop, Nielsen data also shows that the spend on the melon category nevertheless went the other way, slipping 0.3% over the same period, though staying above the $1.12 billion mark.

Within the category it is the watermelon that generated the vast majority – nearly 81% –  of melon sales, though just over 63% of the category’s overall value. Compared to the previous year, watermelon sales in the US were up 2% in volume, to over 1.77 billion pounds, but 0.2% was shaved off last year’s spend.

Meanwhile, cantaloupe sales increased 56.7% to the to the tune of 357 million pounds but despite such a robust upswing they too went the other way when it came to value, drifting down 0.2% to $708.6 million. Cantaloupe held a 29% share of the total melon spend off just a 16% share of the total volume sold.

The honeydew melon went the other way as the watermelon and cantaloupe, in the sense that the sales volume inched down – by 1.6%, though staying above 58 million pounds – while the spend rose, gaining 4.7% to reach $74 million.

Specialty melons showed the strongest dollar growth and they alone logged gains in both value and volume on last year, but this sub-category accounts for only a very small slice of melon sales in either value (1.92%) or volume (under 0.5%). Specifically, specialty melon sales rose 10.2% in volume to under 10.6 million pounds and 9.7% in spend to $13.6 million.

Posted on

Decline in stone fruit sales in US

Retail sales of fresh stone fruit in the United States have slumped 5.6% in value year-on-year, bringing the total spend in this category down $51.8 million to a total of $868.4 million for the 52 weeks to January 30.

Retail sales of fresh stone fruit in the United States have slumped 5.6% in value year-on-year, bringing the total spend in this category down $51.8 million to a total of $868.4 million for the 52 weeks to January 30.

Nielsen data also shows that the number of fruits sold has fallen 1.8% – or by 8.7 million – to a total of 471.4 million.

Peaches, which alone generate nearly half the total spend on stone fruit in the US, also largely accounted for the lion’s share of lower sales in the category.

Consumer expenditure on peaches was 7.8% lower yoy, wiping $31.5 million off the amount spent on peaches in the 52 weeks to January 31 last year.

The total peach volume sold at retail was also down, by 3.6%, to 243.6 million, a decline of 9.2 million.

Despite slight upticks in the number of nectarines and plums sold, by 0.8% and 2.1% respectively, the spend on them dwindled by 3.6% and 0.5%. And rounding off the category are apricots, which were the worst performers in terms of the percentage drop in yoy sales, though it should be remembered they account for only about 1.5% of the stone fruit volume sold. Retail sales of this fruit plummeted about 25% in value, to $19.8 million, and 26% in volume, to 6.7 million.

Posted on

Fruit & veg snacks popular in Europe and Asia-Pacific

Even though fruit is a significant snack globally, and even vegetables are popular in the Asia-Pacific region (57%), cheese is the most eaten snack in Europe (58%), bread/sandwiches in the Middle East (47%), ice cream in Latin America (63%) and potato/tortilla crisps in the US (63%).

Fresh fruit is the world’s most eaten snack (chocolate ranks second), but food preferences between cultures and countries vary in terms of healthy versus indulgent aspects.
Even though fruit is a significant snack globally, and even vegetables are popular in the Asia-Pacific region (57%), cheese is the most eaten snack in Europe (58%), bread/sandwiches in the Middle East (47%), ice cream in Latin America (63%) and potato/tortilla crisps in the US (63%).
Global snacking sales reached $374 billion in 2014 and are growing, says Mark Gillespie, the Global Service Client Director at Nielsen.
At the Fi Europe fair in Paris last December, he shared insights from a survey of 30,000 online consumers from 60 countries. Among them were that people eat snacks at home (79%) with family and friends (68%) and “they stick to the basics – all natural, no artificial colours, GMO-free with natural flavours.
Natural ingredients are rated as very important by 45% of global respondents due to environmental awareness, too,” Gillespie said. Also very important are being sustainable (35%) and organic (34%).

Snacking favourites by region:

• Asia-Pacific: chocolate, fresh fruit, vegetables and cookies/biscuits.

• Europe: fresh fruit, cheese, yoghurt and vegetables.

• Middle East/Africa: fresh fruit, chocolate, bread/sandwich & potato crisps/ tortilla crisps

• Latin America: yoghurt, cheese, ice cream.

• North America: potato crisps/tortilla crisps, chocolate, cheese and cookies/biscuits.

The good news is that snacks are still considered ‘in-between meals’ rather than meal replacements. Long life to fresh food!

CVA