A new report by Information Resources IC (IRI) in the US has said that lower-income shoppers are set to generate US$84bn in incremental spending over the next ten years, providing retailers and manufacturers alike with opportunities during the economic slowdown.
According to the Progressive Grocer, the report – entitled 'The Lower-Income II report: Serving Budget-Constrained Shoppers in a Recessionary Environment' – looks at differences, recessionary spending patterns and behaviours of low-income micro segments driving CPG growth.
The IRI report focused on five lower-income segments including singles and married couples aged 25-34, seniors older than 65, households with children, Hispanics and African-Americans, using four-year trends of key performance indicators to evaluate the steps that retailers and manufacturers should take.
'Lower-income households are one of the hottest opportunities in the marketplace, and will provide real growth for those who want to truly learn about the various micro-segments and their changing behaviours due to the economy,' said IRI's president of consulting and innovation Thom Blishock. 'Our latest research goes beyond the usual narrowly focused reviews and provides meaningful implications and action steps which retailers and manufacturers can use today to drive growth.'
The report found that third-quarter spending in the private label sector had increased, particularly among lower-income shoppers, but that retailers were not maximising their marketing opportunities.
Click here for the full report
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