Demographics and CPG Marketing

ORLANDO, Fla.Consumer packaged goods (CPG) retailers and manufacturers need to have a better understanding of their consumers to effectively focus their marketing efforts and win at the shelf, according to new market data presented at Nielsens Consumer 360 event in Orlando.

Findings reveal a growing base of older consumers with new needs, changes in household spending, a declining percentage of households with children and particularly increased ethnic diversity mean that manufacturers and retailers need to rethink how they invest their marketing dollars.

Its critical to understand how your portfolio stacks up and to develop strategies now that will reap future benefits," said John Lewis, President, Nielsen North America. Where do multicultural consumers shop? What do they buy? And which product innovations will appeal to them?"

Data reveals ethnic households will represent the majority by 2050, and their spending power will increase 25 percent by 2020, and 75 percent by 2050. Hispanics, which account for 15% of the U.S. population, will account for huge growth and wield more than $1.2 trillion by 2012.

According to Nielsen, CPG growth is predicted in baby food and formula, bakery and cereal, frozen foods, snacks, pasta, alcohol, sauces and natural cooking ingredients such as eggs, oil and flour. In terms of the beverage sector, high growth is expected among flavored soft drinks.