Nielsen: Retail Seafood is Recession-Proof
Packaged seafood products are immune to a recession, according to an analysis of macroeconomic variables conducted by The Nielsen Co., which revealed its findings Wednesday at its Consumer 360 Conference in Phoenix.
Nielsen identified five recession-proof categories of consumer packaged goods (CPGs) - seafood, dry pasta, candy, beer and pasta sauces - as well as five categories that are vulnerable to a recession - carbonated beverages, eggs, cups/plates, food prep/storage and tobacco.
"Consumers are feeling the squeeze as they are caught between rising costs and lower spending power," says Eugene Roytburg, managing director of Nielsen. "As a result, many consumers are reprioritizing or altogether changing their spending habits. For CPG manufacturers and retailers, this requires a change in the way you market to consumers, and knowing which of your products are most affected by a recession will help you maintain focus on the right categories and brands in order to succeed."
Nielsen developed its Predictive Macroeconomic Impact System to assist CPG manufacturers and retailers in understanding how certain categories perform during a recession. A number of variables are considered, including U.S. median housing prices, S&P Commodity Trends Indicator, Consumer Confidence Indicator, Consumer Price Index and stock performance.
"For products that are performing strong and showing immunity during a recession, manufacturers and retailers in these industries have the opportunity to increase product exposure even further," adds Roytburg. "For products at the other end of the spectrum, companies would be well advised to target their marketing efforts to shore up performance and maintain traction during tough times."