According to new research from IRI, consumers will host or attend larger gatherings this spring holiday season, especially households with children, but know they will spend more due to inflation and will be looking for deals.
For this new research, IRI tracked price activity on a representative range of food and beverage products and surveyed shoppers on their observations regarding prices and their plans for the 2022 spring holiday season. The insights will enable retailers and manufacturers to make better decisions about merchandising, promotional activity and other variables to enhance the shopper experience and drive growth and profitability.
“As COVID-19’s omicron variant waned in February, Americans once again dramatically increased their out-of-home activities,” said Joan Driggs, VP of content and thought leadership, IRI.
“This IRI report provides an outlook for spring holidays based on recent consumer behavior and past Easter and Passover trends. Retailers should increase merchandising to promote fresh ideas to a weary public. They should also take a tip from other holidays and promote gifting opportunities or ways to enhance entertainment uniquely as shoppers are anxious to celebrate.”
Specific findings of IRI consumer research revealed:
- Ninety percent of surveyed consumers feel the cost of food is higher than last year;
- Thirty percent of consumers will prepare a special meal just for themselves or their families, down from 38 percent in 2021;
- More consumers report they’ll host or attend a meal with extended family who do not live in their household or will travel out of state to attend a celebration in 2022 compared to 2021; and
- Twenty-six percent of shoppers expect to pay much or some more for their spring holiday gatherings than they did last year.
The trends IRI has noticed in food and beverage prices include:
- Price increases in the top 25 edible categories versus one year ago range from 26.3 percent for powdered milk to 13.8 percent for shelf-stable spaghetti/Italian sauce;
- Weakening unit demand will lead retailers to increase promotion investments; and
- Increasing price inflation and price sensitivity will lead consumers to more aggressively shop on deals.
The full report can be found on IRI’s website here.
IRI is a provider of big data, predictive analytics and insights that help CPG, OTC health care organizations, retailers, financial services and media companies grow businesses.
IRI is helping to guide its more than 5,000 clients around the world remain relevant, capture market share, connect with consumers, collaborate with key constituents and deliver market-leading growth.
For more information, visit iriworldwide.com.