Pre-pandemic, the skincare market had one major influencer setting the tone for many of the products U.S. consumers were reaching for: “clean” formulas. The clean beauty movement accelerated in the 2010s, driven by rising concerns about potential health risks associated with synthetic ingredients commonly used in skincare products. Rising to prominence in the beauty industry during a time when social media was also coming into its own power and influencer culture was strong, clean beauty brands capitalized on consumer interest in all things wellness-related and ushered in the idea of ingredient transparency.  Fast forward to 2025, however, and we see that clean skincare sales are declining, based on first quarter sales – suggesting that demand is waning. Today’s consumer is swapping skincare brands with a clean ingredient focus for those rooted in clinical expertise. In prestige beauty outlets, skincare accounts for the largest share of clean beauty product sales but has been declining since 2022.  One of the inherent and persistent dilemmas with the concept of “clean” is the lack of a universally accepted criteria or regulation, leaving the consumer confused on what “clean” means. Such ambiguity factors into why consumers are instead gravitating towards brands with a clearer, clinical heritage and backed by experts such as dermatologists, chemists, or other medical professionals.  It’s important to note that the underlying principles of clean beauty continue to align with consumer values for transparency and safety. Consumers want to know what ingredients they are putting on their skin and ensure the products they use are beneficial to them. Today’s consumer is not only self-educated but discerning, reading reviews and listening to experts on social media.  Innovation drives business forward and there are bright spots for the clean segment popping up in other areas of the beauty industry. Notably, clean fragrance brands are growing dollar sales by double-digits, led by improvements in alcohol-free formulations. The development of new technologies that create a more stable and high-quality emulsion that can hold scent is moving the needle and lifting sales. Without a doubt, clean beauty has carved its place in the industry as it embraces innovation across beauty categories and has opportunities to further mature in skincare. The clean trend may have started as a movement towards safe ingredients but has expanded to encompass sustainability and ethical practices in addition to transparency. With advancements in lab-grown ingredients and consumers’ continued interest in gentle but functional skincare, clean skincare will continue to evolve.

CHICAGO — May 15, 2025   — Circana, LLC  today announced the launch of its enhanced Total Market Sizing  solution, designed to revolutionize the way food professionals analyze and plan for growth. The solution offers an unparalleled, holistic view of the total food and beverage market, spanning both retail and foodservice channels, and delivers actionable insights for demand planning, strategic forecasting, category growth, and more. Leveraging Circana’s MULO+  with industry-leading Foodservice Market Sizing that utilizes unmatched data assets, including SupplyTrack®, ReCount®, and CREST®, the Total Market Sizing solution models data beyond traditional point-of-sale and invoice-level inputs to capture a comprehensive analysis of volume and dollars. This ensures a total view of the market with precision and accuracy, empowering clients to make data-driven decisions that drive results. “The food and beverage industry has struggled with fragmented data, making it hard to fully comprehend the opportunities within reach,” said Tim Fires, president of Global Foodservice at Circana. “Our Total Market Sizing solution transforms this by bridging the gap between retail and foodservice channels, providing our clients with a single, reliable source for planning, innovation, and go-to-market strategies.” One of the key differentiators of Circana’s Total Market Sizing solution is its ability to customize outputs to meet specific client needs. From identifying white-space opportunities to benchmarking performance at the category and operator levels, the solution offers scalable insights tailored to individual business priorities. “Circana’s Total Market Sizing solution is built on over a decade of industry leadership and innovation,” said Sheila McCusker, executive vice president and practice leader at Circana. “We’ve combined our depth of market knowledge with the most comprehensive data coverage in the industry to give our clients the confidence they need to make strategic decisions and uncover growth opportunities. It truly shifts the way CPG manufacturers think about data and the value it can bring to their organizations.” Key features and benefits of the Total Market Sizing solution include: Comprehensive Market Measurement:  Captures total food and beverage spend across retail and foodservice sectors through integrated analytics. Customizable Deliverables:  Provides outputs aligned with internal business categories and tailored insights on attributes such as flavor, pack size, and product form to fit client-specific needs. Strategic Applications:  Empowers teams to excel in demand planning, forecast category trends, target operator segments, and pinpoint opportunities for product innovation. Unmatched Data Breadth:  Foodservice covers 700,000 operator-level invoices over 1.2 million locations, tracks more than 800,000 annual consumer surveys, and integrates retail and foodservice market performance for a 360-degree view. In addition, MULO+ provides next-level market measurement with $1 trillion in point-of-sale (POS) coverage across core CPG channels.

Circana’s Key Takeaways Foodservice traffic is still down, -2% year over year through Q2 2024, but it’s resulted in gains for retail (+0.85%) Consumers’ shifting definition of value has caused a decline in mainstream CPG brands and growth in private label (+3%), premium (+2%), and super premium brands (+4%) Consumers are making more quick grocery trips compared to a year ago, increasing their trips by 8.7% while buying 11% fewer items Consumers have always modified their shopping habits in response to economic challenges. In the past five years, though, they’ve flipped the script, responding to compounded price growth, year over year, since 2019. There are signs inflation is easing – but even so, consumers face grocery prices 27% higher, or more, than they were before the pandemic. These forces have fundamentally changed how consumers define value, creating what we call “unscripted consumers.” These are people who don’t follow the usual spending patterns we’ve seen in other periods when growth has slowed. Since 2019, many grocery retailers have benefited from topline growth, but it has slowed. And while volume has returned in some channels and categories, others are still waiting. To recapture unscripted consumers and drive growth, retailers and brands first need to understand new consumer behaviors and implement several tactics aimed at meeting their evolving needs. Four ways consumers have changed their spending habits What differentiates today’s unscripted consumers from consumers in previous periods of slow growth is their pursuit of “pervasive value,” or a value that goes beyond price. Value can equate to time savings, quality, convenience, a type of indulgence, or other measures. The ways consumers seek value also differs now. Instead of engaging in one or two of the following behaviors, consumers may pursue several or all of them, including: Quicker, more frequent trips. All grocery trip types are growing. Quick trips (+8.9%) lead growth, but with fewer items (-11%) purchased per trip compared to a year ago. These trips include purchasing 2.1% more items from the perimeter, such as deli-prepared and heat-and-eat meals, and fewer center-of-store products. It’s important to note that the majority of sales come through stock-up trips.  Cutting back on foodservice.  Foodservice traffic is down (-2% year over year  through Q2 2024), but it’s resulted in retail gains (+0.85%) versus a year ago, as consumers prepare more meals at home. Trading to private label and premium brands. Consumers’ shifting value definition has caused a decline in mainstream CPG brands and growth in private label (+3%), premium (+2%), and super premium brands (+4%), compared to a year ago. This shift squeezes mainstream brands in the middle. Switching channels.  Consumers are shifting to value channels, which account for most trading-down behaviors. Mass and club channels continue to drive most food and beverage growth.  E-commerce for food and beverage, driven by store delivery, is growing. The convenience channel is declining. Three strategies for combating inflation-based spending Because these shopping trends are likely to persist well into 2025, retailers and brands need to dig deep to understand their consumers and change some of their tactics to recapture growth. Here are three focus areas to consider: Highlighting unique attributes. When consumers plan their purchases, they often look for products that offer more benefits than their primary purpose. Beverages, for example, offer more than just hydration – they can provide protein, vitamins, probiotics, an energy boost, and more. Whether they’re looking for other attributes like this because of their dietary or life stage needs, or just personal preference, retailers and brands can help communicate new and different attributes  through digital ads, social media, shelf communications, and mobile apps.   Use assortment strategy to provide more options and tiers.  It’s still essential for retailers to understand their customer base. For example: Eating habits.  For example, the uptick in use of GLP-1 medications means more consumers seek smaller or single-serving snack sizes. Demographics.   Hispanic consumers  shopping for intergenerational households may look for bulk products. Flavor.  Consumers find joy in new flavors – having a core selection, along with surprising and delightful new combinations, can drive purchases. Tiered options.  Retailers should aim to sell a variety of products at different price points to cater to shoppers at different income brackets. Engage consumers with targeted messaging . Reaching consumers with the right message at the right time is more important than ever. Retailers and brands can engage consumers throughout the day and the year and across occasions and dayparts. Morning, midday, snacking, birthdays, and holidays offer unique engagement moments – tailoring messages to these specific occasions can enhance consumer connection and drive engagement. Subscribe for Circana Insights Inflation has forced consumers to make deliberate, value-driven decisions about where, when, and how to shop, and this is likely to continue in the near term. They are also focused on making more informed decisions when it comes to determining value, and that’s one behavior that’s sure to stick. Understanding more about your audience and ensuring your portfolio can meet their needs today and over the next few years can help you boost growth.

By Sally Lyons Wyatt, Global EVP & Chief Advisor, Consumer Goods & Foodservice Insights and Kellie Hardin, Client Insights Consultant Circana’s Key Takeaways Hispanic consumers favor in-store shopping, family-owned retailers, and products from their countries of origin while skewing towards dollar and club store channels. Food and beverage brands need to measure and grow their share among Hispanic shoppers by aligning products with this audience's needs, such as "natural" and "better for you" offerings. Retailers should create Hispanic-focused shopping experiences that include bilingual staff, signage, and digital tools. Hispanics make up 20% of the U.S. population, a number the U.S. Census Bureau expects to grow 50% by 2060. This diverse and young group of consumers represents more than two dozen countries in the U.S. and more than 25% of them are from Gen Z. They make more than $180 billion in CPG purchases annually – that accounts for 14% of the total market and 16% of total CPG growth. Hispanics are driving growth and outpacing non-Hispanics in CPG and food and beverage in both dollars (3.5% vs. 2.6%) and units (7% vs. -0.3%). Source: Circana OmniConsumer™ Receipt Panel, 52 WE Aug. 11, 2024. Omnichannel venue. If you’re a food and beverage brand or a retailer, understanding these valuable consumers’ spending patterns, channel preferences, cultural influences, preferred flavor profiles, countries of origin, and other purchase drivers will be critical to driving in-store and online engagement.  Hispanic consumer shopping trends Hispanic consumers are not a monolith – with countries of origin spanning North, Central, and South America, plus countries in the Caribbean, their preferences and shopping patterns are anything but homogenous. But in general, Circana’s research has found they are more likely than non-Hispanics to: Shop in-store than online Favor family-owned retailers  Seek food brands from their countries of origin Shop for larger households Skew toward the dollar and club channels for food and beverage purchases.  We also found Hispanic CPG spending growth is faster in food and beverage, particularly in units, than it is among non-Hispanics.  How brands can market to Hispanic shoppers Food and beverage brands should have a Hispanic consumer objective within their brand strategies. As part of this, brands should measure their share among Hispanic consumers on an ongoing basis and develop their strategy around retaining their Hispanic consumers, winning back lost ones, and attracting new Hispanic consumers to drive growth across their portfolios.  Opportunities for brands with high Hispanic penetration: If a brand knows its share of Hispanic consumers is high, the focus should be on maintaining and retaining customers and seeking growth opportunities. For example, the chili-lime seasoning brand Tajin has grown its influence across the store, growing from eight categories four years ago to 11 categories in 2024. Now shoppers can find Tajin-flavored fruit snacks, Tajin-mango sorbet, and Tajin-flavored snack nuts. Tajin dollar sales grew from $55 million to $115 million over the 52 weeks ending October 10, 2024, shown by Circana’s POS, MULO+ with Convenience data. Co-branding partnerships or entering adjacencies and licensing deals are great ways for Hispanic brands and brands in general to drive growth, expand brand equity, and attract new partners. If a brand doesn’t have attributes that align with Hispanic needs, it should consider mergers and acquisitions to find its way into homes. Opportunities for brands looking to increase their share of Hispanic customers . Whether a brand’s penetration among Hispanic consumers is high or low, finding growth opportunities requires a multipronged approach. Brands with low penetration should assess whether they have attributes, benefits, or differentiation that align with Hispanics’ needs and attitudes. If the brand believes this is the case, the brand should communicate and promote these attributes and assure availability where Hispanic consumers shop. For example, Hispanics are drawn to products promoted as “natural,” “organic,” and “better for you,” and they seek out flavors like horchata, melon, mango, and limón.  Retailer strategies for increasing Hispanic consumer engagement Like brands, retailers also need to make capturing Hispanic shoppers a core part of their growth strategy. They can incorporate consistent measurement and objectives built around whether penetration is high, medium, or low. To make the shopping experience more attractive to Hispanic shoppers, retailers should consider: Targeting assortment to Hispanic consumers’ preferences . Retailers have an opportunity to develop Hispanic-focused store concepts that provide a personalized shopping experience to local Hispanic communities. These stores could incorporate bilingual staff and signage and Hispanic-branded products. Retailers could arrange products by country of origin and sponsor promotions and sales around these items. Offering bilingual digital experiences . Retailers can take advantage of Hispanics’ preference for in-store shopping by getting creative with digital tools that make walking the store easier. Retailer apps could provide bilingual marketing, call attention to products by Hispanic brands, and highlight keywords and product attributes Hispanic consumers seek. Align Hispanic social/digital media messaging with preferred language and on key apps . Hispanics over-index in their use of WhatsApp, TikTok, and Snapchat, among other apps. Retailers and brands should test bilingual effectiveness and work to expand language preferences across traditional media and marketing materials. Do you have any questions for Circana? Email  GrowthInsights@circana.com .   Get Access To Circana's Related Consumer Behavior Reports: Meet the U.S. Hispanic CPG Consumer Hispanics represent 20% of the U.S. population. They also account for 14% of the total CPG market spending, a share that continues to grow. This report, Part I in a two-part series, explores their more than $180B annual CPG purchases to highlight consumption trends and opportunities to win with these valuable consumers.  Download This Report Hispanics’ CPG Shopping Trends 14% of U.S. households are Hispanic households, and these consumers are more likely to shop in-store than online. This report, Part II in a two-part series, focuses on U.S. Hispanic retail engagement. It also explores the importance of understanding cultural references and opportunities to activate these valuable shoppers around specific holidays.  Download This Report

By: Sally Lyons Wyatt, Global EVP & Chief Advisor, Consumer Goods & Foodservice Insights Circana’s Key Takeaways Retailers and brands should offer both in-store and online education to SNAP shoppers to help them with ideas for recipes, shopping lists, and budget friendly meals. Beyond major holidays, retailers can create themed promotions, streamlined meal kits, and targeted deals for everyday occasions to help SNAP households save money  While SNAP shoppers are loyal to name brands, there’s an opportunity to combine private and brand name product deals to maximize value. Consumers who receive Supplemental Nutrition Assistance Program (SNAP) benefits wield tremendous spending power at retail and are a critically important segment to food and beverage brands. Approximately 18% of U.S. households used SNAP in 2024, and those households spent 26% more on CPG food and beverage than non-SNAP households. However, there are signs that SNAP households feel inflation’s effects more acutely than non-SNAP households. Indicators include: Across all CPG, foodservice, and non-food consumables categories, we see SNAP households’ contribution to marketplace spending down about 5 percentage points versus a year ago. While SNAP households continue to outspend non-SNAP households across all CPG products, in terms of dollars, units, and trips, their household spending levels stagnated in a year when all other consumers increased their spending.   SNAP shoppers make 22% more total trips than non-SNAP shoppers. Three ways to market to SNAP consumers in 2025 Retailers and brands evolve their efforts to reach SNAP shoppers by offering delivery services and providing more program information on retailer websites and apps, but they can – and should – do more. We’ve identified three ways retailers and brands can continue their efforts to deliver on value for these resilient shoppers. Offer in-store and online education. Retailers and CPG brands have a wealth of educational resources from the government and within their own organizations with which to create educational materials for shoppers. The U.S. Department of Agriculture (which administers SNAP) has an extensive library of resources to help SNAP recipients shop for healthy food on a budget. Many retailers and brands are using these materials well, giving shoppers helpful advice and guidance. But they need to keep going and get even more creative. Retailers and CPG brands can integrate these materials with services provided by the nutritionists and dieticians on their own payrolls to develop recipes, shopping lists, and meal ideas shoppers can access in stores or online.  Make meals more affordable year-round. Ahead of Thanksgiving, retailers pull out all the stops to make sure shoppers know about all the sales and promotions aimed at helping them save money when cooking their holiday meals. Holiday promos often include an estimated cost per person to help shoppers justify the cost of ingredients on the spot. Stores and brands push out text messages, emails, direct mail, flyers, TV and radio commercials, and more, with information about sale items, recipes, shopping and cooking tips, and meal suggestions to make shoppers’ lives easier during a busy time of year. Category and occasion managers work across categories and departments, looping products from the perimeter, produce, and center of store into promotions, to make it easier to find sale items and streamline the shopping trip. What if retailers were able bring the same kitchen-sink approach to smaller occasions throughout the year? That would require putting themselves in the midframe of the SNAP shopper who looks to a retailer for help with dinner occasions, snack occasions, or smaller celebrations like birthdays. Other occasions could be themed meals, like one-pan or sheet-pan dinners, or other time-saving scenarios. Tactics could include creating displays that have all the items needed for the occasion in one spot, like retailers already have for meal kits.  Promote occasion deals with private and name brands . While SNAP shoppers are trending up with private brands, they still contribute more to many brand names than non-SNAP consumers. We found SNAP consumers remain more loyal to name brands:  81% of SNAP dollars are spent on name brands. Given these shoppers’ preference for name brands, retailers can give shoppers deals with name brands and private brands to maximize the basket and potentially maximize profit. This could include running promotions on private brand pasta, private brand ground beef, and name brand marinara sauce, which would allow shoppers to realize value while continuing to demonstrate loyalty to their favorite brands. Many retailers already offer these types of deals, but we don’t see them applied consistently across retailers, brands, and channels. It’s important to keep in mind that SNAP shoppers are not a static, unchanging population bloc. The SNAP program is designed be a short-term safety net to assist a household as they navigate their way to self-sufficiency. The solutions and strategies brands and retailers adopt to engage them should be flexible and as varied as the shoppers themselves. Want to learn more about SNAP shoppers? Check out our on-demand webinar, Understanding the Resilience of SNAP Shoppers , and stay tuned for our upcoming podcast. Do you have any questions for Circana? Get in touch with us at  GrowthInsights@circana.com .

By Jonna Parker, Team Lead, Fresh Foods Group Circana’s Key Takeaways During a period of disruption, upgrading to weekly data deliveries during an affected period can help organizations act faster and with less guesswork about where and how consumers are responding. Understanding how much volume is driven by different kinds of consumers will be a clue to how fast (and how hard) it will be to recover. Brands should review co-purchase and switching data before, during, and after a disruptive event to update their knowledge of their own products. As the pandemic faded into the rearview mirror and U.S. consumers grappled with two years of historic inflation, 2024 was to be the year grocery retailers and manufacturers got back to normal. But the summer and early fall brought disruptive events in the form of headline-dominating food safety issues and the threat of a dock workers’ strike . An issue with deli meat left cases empty in some of the highest-volume U.S. retail chains in late July, and news of the pending strike in October led people to hoard toilet paper . Significant supply chain disruptions – whether caused by a strike, a recall, or a viral video-induced influx of consumer demand – can happen at any time to anyone in the retail food industry. While it’s impossible to be fully prepared for these kinds of disruptions, there are questions manufacturers and retailers need to ask themselves during a disruption to help them move from a reactive posture to a proactive one. The answers to these questions will help determine what the disruption means for consumers, and it will help manufacturers and retailers identify strategies to regain or even increase sales. Strategy 1: Look at the most current and detailed market sales data for the affected period. We always recommend manufacturers monitor their volume data on a weekly basis, rather than waiting for slow, high-level monthly or quarterly updates. When major supply chain disruptions occur, organizations need access to the latest granular data about market dynamics. Point-of-sale data is now available eight days after period close, even in fresh and random-weight categories. During a period of unprecedented disruption, upgrading to weekly data deliveries can help organizations act faster and minimize guesswork about where and how consumers respond. Strategy 2: Categorize your shopper types and understand how they impact your products’ volume. How does your product’s volume change based on different types of shoppers, such as new, lost, retained, and whether they are heavy, medium, or light users? It’s critically important for manufacturers to understand what’s happening to their volume – including knowing their products’ heavy, medium, and light consumers – before and after a disruptive event. Understanding how much volume each consumer type drives will be a clue about how fast (and how difficult) it will be to recover. For example, in the spring and summer preceding the U.S. deli meat disruption, the service deli industry was already trending lower in pounds and dollar sales versus the prior year. At the time, few realized more shoppers were leaving deli meat than were entering the category.  Diagnosing the category’s retention and buy rate problem prior to the emergency of food safety concerns signaled that recovering to pre-disruption pounds would take more than just getting product back on shelf. It will require a longer-term effort to earn back the heaviest buyers’ trust and assure them the category still offers value.  Source: Circana, Integrated Fresh Scan Panel, 9/12/21-10/6/24  Strategy 3: Consider how grocery supply chain disruptions are impacting other products. Disruptions to demand don’t just affect the item at the center – they also affect companion items and behaviors related to how that item is consumed or used. Brands shouldn’t assume they know with what other products their consumers use their product, what else they buy in the same basket, or products for which they are substituting. Instead, they should review co-purchase and switching data before, during, and after an event to update their knowledge of their own products.  For example, many thought deli’s loss would be a gain for packaged lunchmeat in the meat department, but at Circana, we knew very few packaged lunchmeat buyers also buy deli meat. The two spaces have very little overlap in the same trip and retailer. When deli meat was disrupted, it might’ve been easy to assume consumers would view these products interchangeably, but behavior and switching data told a different story. Source: Circana, Integrated Fresh Scan Panel, for the 4 weeks ending Oct. 8, 2024 vs. a year ago When a major disruption impacts a category or a retailer, many organizations opt to just weather the storm and adjust their strategies as events unfold. But organizations that proactively monitor their new, lost, and retained consumers, their volume data, and consumer switching behaviors can respond quicker and, in some cases, recover their costs.  Do you have any questions for Circana? Email GrowthInsights@circana.com .   Want to be prepared for the next disruption? Consider Circana’s Liquid Data Go™ to bring the power of big data insights to any size company or budget. Request your free trial today!

Key Takeaways People are shopping and eating differently — for reasons that don’t uniformly apply. You need to show up for different consumers in different ways. Affordability and convenience matter more than ever. Price and promotions may drive traffic, but relevance wins loyalty. The fight for future market share starts now. Staying relevant 365 days a year means taking a full 360-degree view of consumers, demographically and beyond. Here’s a scenario that might sound familiar: Every New Year’s Eve, people resolve to eat better and exercise more. Grocery carts are loaded with fresh fruits and vegetables. Lapsed fitness memberships are reactivated. However, weeks later, that same produce is still languishing in the crisper drawer of the fridge, and those memberships go dormant again. It’s a dance many U.S. consumers do every year. But one key thing is changing . At the grocery store at least, relevance now trumps aspiration. Consumers are less willing to squander their diminished buying power on perimeter items they won’t eat or can’t use conveniently. Traditional pricing and promotional strategies likely won’t change their minds. Now’s the time to pivot and respond. A deep dive into Circana’s proprietary data reveals what drives spending decisions in fresh right now. Here’s what you need to know. 1. Consumers no longer behave the way they used to . In 2023, 86% of annual eating occasions in the U.S. were still sourced from retail. How consumers shop for fresh today — and what they buy — boils down to one thing: what they eat . And what they eat depends much less on generic pricing and promotion strategies and much more on questions like: How easy is it to find what I need ? How long will this take me to prepare ? Can I use all of this ? Do I even like it ? Notably, it also depends on their age. Consider this: Consumers, especially those in Gen Z and millennial households, are leaning into less prep and less involved meals for dinner. Along with that, those same households are snacking more than three times a day , offering significant opportunities for fresh foods that are not always in consideration. How to win : Understand that fresh shoppers are not a monolith and leverage that to your advantage. Capture and keep shoppers by aligning your product mix to their desire for quality, convenience, and ease of purchase. Focus on making it easier to solve for the occasion, whether it’s the main meal or snack time. This leads me into a specific element of shifting consumer behavior I explicitly want to call out: 2. The “big shop” has left the building. Just-in-time shopping has replaced it. Consumers only buy the fresh they need, only when they need it — no more, no less. Why? To mitigate inflation and waste. This is one reason cost-sensitive consumers, particularly young millennial families, have shifted their fresh shopping toward less traditional channels. Since 2019, we’ve seen a shift of three full percentage points from traditional grocery share of fresh to mass, club, and specialty retailers. Discovery of quality products and positive shopping experiences have helped these channels retain their growing share of fresh foods. How to win : Volume is soft , but trips are up, and people still need to eat. Relevance is key. How can you redefine value in the face of inflation? Think multi-dimensionally beyond price. Quality, experience, and convenience all matter when retaining your place on the grocery list or bringing people into your store. 3. Relevance is relative. Being “the freshest” no longer wins, especially in younger households. Similarly, pricing and promotions may entice shoppers through the door, but if the overall experience doesn’t resonate, it may be their last visit. How to win : Be curious about consumer wants and needs . What are they asking for? How can you provide it? The most successful retailers and suppliers will use data to segment and gain insight into their consumers. Then, they will transform this insight into tailored solutions that span product mix and format and draw people in with the right messages via the right media at the right time. The bottom line Retailers and suppliers must work a little harder to define value, capture loyalty, and maintain relevance. We’re here to help. Watch our February Top Trends in Fresh webinar: Seizing the Opportunity in How We Shop and Eat Today . And stay tuned for our May webinar, where we’ll discuss how to activate and tailor to key customer segments using generational and other demographic insights. Questions? Email me!

Join us for an informative webinar in Chinese, where Senior Account Managers, China Foodservice, Vera Cai and Georgia Chen, will bring you the latest insights into the foodservice market and share business opportunities to watch in 2025. This webinar will explore: At a time of increasing global economic uncertainty and shifting consumer confidence, how can we better grasp foodservice consumers’ changing consumption habits and trends? The most popular dining channels, dining occasions, foods and beverages, and popular flavors Going abroad in the U.S. - the competitive landscape and opportunities in overseas foodservice markets If you would like to receive the webinar recording in English, or get a copy of webinar, please contact gary.wong@circana.com 2025中国餐饮预测与出海美国攻略 网络研讨会录像供您参考：本次网络研讨会，Circana中国餐饮市场高级客户经理蔡逸君Vera Cai和陈楠Georgia Chen将为您带来餐饮市场的最新洞察，分享在2025年值得关注的生意机会。   我们会一起分享讨论以下重要议题: 当全球经济不确定性增加、消费信心转移， 如何更好把握餐饮消费者持续变化的消费习惯和趋势？ 最受消费者欢迎的就餐渠道、用餐场景、食品饮料、热门口味 出海美国攻略——海外餐饮市场竞争格局和机会点

Spain and Italy continue to lead FMCG recovery in Europe, overtaking sluggish markets in Germany and France National brands fight back against private label dominance through innovation and strategic pricing Beverages and confectionery decline as health trends reshape choices London, May 8, 2025  – Europe's FMCG market grew by 1.9% in value over the year, reaching €680 billion in the 12 months to December 2024. This was driven primarily by strong consumer demand for chilled, fresh, and ambient food categories, despite ongoing macroeconomic uncertainty and inflationary pressures, reveals Circana’s latest biannual Demand Signals report. The biannual report, which analyses point-of-sale data from Europe's six largest grocery markets (France, UK, Germany, Italy, Spain, Netherlands), and tracks performance across over 230 FMCG categories and one million SKUs, indicates significant shifts in consumer spending, with a marked preference for essential and convenience-focused products.  Notably, chilled and fresh food segments achieved strong performance, growing 2.2% in unit sales to 84.5Bn units, while ambient foods increased by 0.8% to 89.1Bn units, collectively adding €7.5 billion in absolute value growth year-on-year. Despite some signs of growth, there’s a note of caution as FMCG faces renewed uncertainty following a promising recovery in 2024. While nearly one-third of categories shifted from decline to growth and another 28% continued to grow, increasing economic pressures could stall momentum. Shoppers are becoming more selective, spending more on essentials, which grew by 1.6%, while cutting back on non-essential items, which declined by the same margin, as they look to better manage their budgets. Ananda Roy, SVP Thought Leadership Europe, Circana , commented: "The FMCG sector is demonstrating resilience in the face of continued economic turbulence. Consumers across Europe are prioritising value and convenience, prompting brands and retailers to rapidly adapt their product portfolios and promotional strategies." Private labels, which previously surged amid inflationary pressures and reached nearly 47% of FMCG unit sales, some 143Bn units, now face increasing competition from national brands. Through targeted promotions, product innovation, and smaller pack sizes, brands have regained ground, reversing some private label gains observed over the past few years. Roy  added: "National brands are fighting back against private labels, offering consumers differentiated value through innovation, sustainability, and enhanced product experiences. Private labels must now recalibrate to sustain their growth trajectory." Conscious consumers reshape spending amid inflation pressure Shoppers today are looking for more than just a good deal, they want versatile products that fit their lifestyle and are better for the environment. In fact, 68% prefer products that can adapt to different needs and occasions. Physical availability is also key, as over half of shoppers will look for a product again on their next trip, but many won’t go out of their way if it’s not there. Just as important is the product experience as 64% of dissatisfied trialists say they wouldn’t buy the product again, highlighting how trust and quality are essential for long-term success. Southern Europe leads FMCG value sales growth Spain and Italy are leading FMCG value sales growth in Europe. Spain's market grew by 4.9% , reaching €99 billion  in the 12 months to December 2024, driven by strong domestic demand and growth in chilled and fresh food categories (based on POS data). Italy rose 2.3% in value sales, driven by ambient food and drinks, while the UK grew moderately at 2% as convenience trends returned. The 3-year compound annual growth rate (CAGR) in unit sales to December 2024 shows a decline in Germany (-0.5%), France, and the Netherlands (both -0.8%), reflecting ongoing economic uncertainty and low consumer confidence. Health trends reshape choices as alcohol and confectionery sales drop Alcohol unit sales dropped -1.5% vs year ago, while Drinks showed small growth at 0.1% as consumers shift to healthier choices. Confectionery and baby food unit sales also declined (–1.0% and –2.2%) due to health trends and post-pandemic demographics. (POS ending December 2024). Non-edible FMCG categories are seeing a slow and uneven recovery, with only a few areas returning to growth. Beauty in Personal Care rose by 0.9% in unit sales, boosted by strong demand in the 13 weeks leading up to Christmas. Household grew by 0.6%, driven by increased sales of detergents and laundry aids. Growth was supported by new product launches and heavy promotional activity. Private label strategies have become more nuanced, with shifts observed across various European markets. Spain and Germany maintained strong private label penetration (49% and 43% value share of market, respectively), though recent momentum has slowed. France experienced modest growth in private label share, whereas the UK and Italy stabilised, reflecting intensified competition from national brands.

Circana’s comprehensive weekly updates on the U.S. consumer packaged goods sector monitor the impact of macroeconomic factors, including tariffs, on volume, price, and supply, providing valuable insights to support critical business decisions. Please find our latest CPG Consumer Spend Tracker with data ending May 09, 2025, here.  Highlights from this week’s edition: Spending in retail food & beverage shows improvement in April driven by a strong Easter week. Year-to-date 2025 shows healthy volume growth (0.5% vs. YA), but still some softening versus CY 2024 (0.8% vs. ‘23). Price growth remains stable with no   observable impact from tariffs yet . With many tariffs now in effect since early April, we anticipate that select products will begin to see impact soon, though widespread impact may take time. In collaboration with Don Unser, we have a summary page of what is happening across sectors. This week, we have also introduced new pages, including tracking price and volume shifts by segment, linked to reliance on imports vs. domestic production . Select segments relying more heavily on imports are likely to experience the greatest pricing impact, though most F&B segments will still feel some indirect impact (i.e., packaging, supply chain ripple effects). So far, inflation is stable in most F&B segments, with any acceleration driven by non-tariff factors. Volume performance is strong in meal / at-home cooking segments (e.g., meat, produce, baking), while sweets, snacks, and alcohol continue to see declines. In non-food CPG, consumers continue to pull back on discretionary spending, with trends further softening in the last week. Year to date, core non-food CPG unit sales are up 0.3%, which is a softer performance than CY 2024 (0.9% vs. ’23). Non-food CPG price growth shows no visible impact from tariffs to date.

CHICAGO — Jan. 21, 2025 — Circana™ , a leading advisor on the complexity of consumer behavior, today announced the launch of the fourth cohort of its Diversity Advantage Program (DAP). Designed to empower minority- and women-owned businesses, the program provides access to valuable consumer data, expert coaching, and consulting services to help these businesses achieve growth and long-term success. The fourth cohort of the DAP includes 18 businesses within the consumer packaged goods and general merchandise industries, marking a total of 81 participants known as “DAPers” since the program inception. Each DAPer gains free access to Circana’s Liquid Data Go™ platform and Liquid Data Collaborate™ platforms, as well as legal support and exclusive DAP Masterclass Workshops that focus on training for essential business soft skills and knowledge. “The results we’ve seen diverse-owned businesses achieve through DAP over the past four years inspire us and make us proud to collaborate with them on their growth journeys,” said Boris Oglesby, executive vice president and practice leader, Circana. “Each DAPer brings a unique story and ambition, and supporting them in breaking barriers and reaching their goals is a privilege. We’re excited to welcome this new cohort and look forward to all they will accomplish.” New participants in Circana’s Diversity Advantage Program include: Azteca Bakeries BeautyStat Carmichael’s Honey Fashion Fair Luv Yu Bakery Mas Panadas Michele’s Granola Mingle Mocktails MyTagAlongs Nilo Brands Painterland Sisters RollinGreens Sanzo Seattle Chocolate Company Shaw’s Ice Cream St. Jean’s Cannery Superfoodio Tayion Collection As the program enters its fourth year, DAP is supported by more than 225 Circana employees in the United States, Canada, and the United Kingdom, who contribute over 15,000 hours annually to support participants. The program is strengthened by collaboration with additional retailer partners, including Sobey’s Canada, Kohl’s, and Macy’s. Circana selects program participants from businesses accredited by the Women’s Business Enterprise National Council and the National Minority Suppliers Development Council, as well as those recommended by retailers with their own diversity supplier programs. To be eligible to participate in Circana’s Diversity Advantage Program , companies must have annual sales between $1 million and $25 million and can be recommended by a participating retailer. For more details about the program and information on how to apply, interested parties can contact DAP@circana.com .

Innovation Meets Consumers in New Moments Each year, Circana evaluates CPG’s top 100 food and beverage and top 100 nonfood product launches. The latest lineup of winners uncovers key themes and winning strategies that enabled successful new products in 2023. Our 29th annual report highlights the changes Americans have experienced since the pandemic. Many of these products were developed in 2022 or even 2021, when many consumers started to regain their out-of-home mobility and resumed family and social routines. The 2023 New Product Pacesetters generated a remarkable $6.1 billion in their first year of sales across food, beverage, and nonfood categories. This was slightly down from the $7 billion in 2022 Pacesetters sales, reflecting the dynamic nature of consumer trends and market responses.  Highlights : New Product Pacesetters significantly contribute to overall store sales growth. This year, Pacesetters accounted for an 18% increase in contribution to total multi-outlet sales, compared to an 11% increase in 2022. Year after year, New Product Pacesetters feature beverages that deliver more: more energy, rapid hydration, and nutrients. This year, 43% of consumers sought hydration in their beverages, often to alleviate headaches, fatigue, or muscle cramps.  Within nonedible categories, “natural” was a watchword for personal care products, including simple ingredient lists and free-from positioning. Innovation remained strong in health solutions but couldn’t match the more than $1.5 billion in sales from home test kits in 2022. Overall sales of nonfood New Product Pacesetters in 2023 reached $2.7 billion compared to 2022’s $3.5 billion. Demographers expected to see birth declines the U.S. during the pandemic. But in 2021, the birth rate was higher than predicted, especially among women younger than 25 and those having their first child.  Pet ownership, specifically of multiple dogs, has seen a notable increase over the years. Circana data shows that more than 50% of pet parents buy gifts for their pets. The Top 10 Food and Beverage New Products Pacesetters:  Similac 360 Total Care PRIME Hydration Starry OREO Frozen Desserts Starbucks by Nespresso for Vertuo GHOST Energy Doritos/Cheetos/Sunchips Minis Black Rifle Coffee Electrolit Kevin’s Natural Foods The Top 10 Nonfood New Product Pacesetters: Gain+Odor Defense Tide Ultra OXI with Odor Eliminators Raw Sugar Kristin Ess Dr. Squatch Flamingo Duke Cannon Bark Billie Downy Rinse & Refresh The Top 10 C-store Pacesetters: GHOST Energy Alani Nu Gatorade Fit Black Rifle Coffee Voodoo Ranger Juice Force Liquid Death Gatorlyte Zero Starry OREO Frozen Desserts Simply Spiked Lemonade

Understanding the Importance of Hispanic Shopping Trends Hispanics represent 20% of the U.S. population. They also account for 14% of the total CPG market spending, a share that continues to grow. This report, Part I in a two-part series, explores their more than $180B annual CPG purchases to highlight consumption trends and opportunities to win with these valuable consumers. Highlights : More than two dozen countries are represented by Hispanics in the U.S., predominately Mexico. Another large portion of the U.S. Hispanic population is from Puerto Rico, a U.S. territory. In the U.S., Hispanic women have the highest fertility rate, and Hispanic births outpace immigration in population growth. Acculturated Hispanics spend more than $10.3 billion on 10 categories. Hispanics are driving growth and outpacing non-Hispanics in CPG and food and beverage in dollars (3.5% vs. 2.6%) and units (7% vs. -0.3%) Place of origin and degree of acculturation should be considered when marketing to Hispanic shoppers. Mexican-Americans in the Southwest may have different preferences to Puerto Ricans in the Northeast.

Impact and Opportunities for Retail Activation 14% of U.S. households are Hispanic households, and these consumers are more likely to shop in-store than online. This report, Part II in a two-part series, focuses on U.S. Hispanic retail engagement. It also explores the importance of understanding cultural references and opportunities to activate these valuable shoppers around specific holidays.  Highlights : Hispanic households tend to be multigenerational and larger than the national average. Hispanic consumers favor local Hispanic or family-owned retailers but will shop mainstream retailers with the right assortments. Traditional flavors like limón, churro, and horchata, and brands like Fabuloso, Modelo, and LaLa, are gaining mainstream appeal across food and beverage.  Using country-of-origin and descriptive menus, restaurants have unique opportunities to target specific groups.  Retailers should align Hispanic social and digital media messaging with preferred apps, such as WhatsApp, TikTok, and Snapchat.