IRI Trend Watch Report Identifies Key Opportunities for CPG Industry Growth in 2008

CHICAGO--(BUSINESS WIRE)--Information Resources, Inc. (IRI), the leading global provider of consumer, shopper, and market insights for the consumer packaged goods (CPG), retail, and healthcare industries, has released its annual forecast of emerging consumer trends affecting the CPG industry. IRI views 2008 as a year offering unprecedented opportunities for retailers and manufacturers that listen to consumers both directly and through analysis of their shopping and purchase behavior to develop unique products and shopping experiences aligned with evolving consumer needs.

The IRI report, “Consumer Trend Watch 2008” reveals eight critical trends that will affect retailer and manufacturer growth this year, ranging from an evolving role of food and beverages as “health solutions” to a focus on multi-tasking, time-saving, “do it all” products. According to the forward-looking IRI report, early market entrance, advanced consumer education, and industry partnerships are the key to new CPG growth, higher revenues, and deeper market penetration.

“When it comes to the new and evolving retail environment, the consumer is not only driving the bus, he really owns the bus too,” said IRI President of Consulting and Innovation Thom Blischok. “I can think of no other time when it was more important for the CPG industry to act upon the information they are receiving on shopper needs and expressed expectations. Consumers are telling us exactly what they want out of their purchasing experience. Those who listen will prosper. Those who don’t will be left behind.”

According to the report, foods delivering specific health and wellness benefits, including disease management and prevention, will drive sales growth in 2008. “Food as health solution” items primed for exponential growth include those containing digestion-aiding probiotics, immunity-boosting ingredients and antioxidants. Energy enhancement is also a consumer-valued attribute IRI reports is positioned for an increased stake in overall market share. From caffeine-infused snack products to natural herb-formulated foods and beverages, such as Diet Pepsi Max, to breakfast cereals providing complex carbohydrates, new energy delivery systems will be the hallmark of new product growth across numerous categories.

Among other emerging product trends IRI anticipates will play significant roles in 2008 are the following:

• Sustainability-Driven Consumers: Growing consumer awareness of the environmental and social impact of their purchases will drive “green,” organic, fair trade, and eco-friendly packaged product innovations and assortment options.
• Multi-Tasking Products: With the mass expansion of product choices, consumers will be on the look out for items that cross categories and “do it all,” such as multiple ailment-treating medications and all-purpose household cleaning products.
• Redefining Fresh: Consumers are broadening their definition of fresh at both ends of the spectrum, with some placing heavier restrictions on fresh to include only local produce and others considering frozen foods “as good as fresh” in taste and nutrition due to new steam-cooking technology and premium ingredients.
• Natural Beauty: Cosmetic and skincare innovations will expand further into all-natural ingredients, offering chemical-wary consumers non-synthetic alternatives across multiple product lines.

A central component for CPG product growth and expansion is an industry-wide dynamic of cooperation and collaboration, according to IRI. With consumer expectations constantly evolving, it is necessary for retailers and manufacturers to coordinate and cross pollinate on all phases of the product lifecycle, including product development, marketing programs and in-store display and promotion. The mutual goal: to tap into a convergence of various consumer-focused trends, leading to a heightened response to consumer needs and greater market share.

“IRI information and expertise make it possible for retailers and manufacturers to speak the same language and view the same information at the same time,” said Blischok. “This will be the key to their success in 2008 and beyond. Meeting consumer aspirations with new product solutions and marketing them effectively takes an understanding of where the market is headed and why. IRI’s unique insights provide our clients with the knowledge of which way the CPG market is trending, the tools to make critical decisions, and the capacity to network with other industry leaders that will benefit all.”

About the Report

The Times & Trends report, “Consumer Trend Watch 2008” is available from IRI, the leading global leading provider of consumer, shopper, and retail market intelligence and insights for the consumer packaged goods (CPG), retail, and healthcare industries. The findings of this report were compiled based on IRI New Product Profiler^™, IRI AttitudeLink^™, IRI Consumer Network^™ and IRI MarketInsight^™. To download the report, visit http://us.infores.com/filelib/timestrends/TT_February_2008_Trends_to_W atch.pdf (Due to the length of this URL, it may be necessary to copy and paste this hyperlink into your Internet browser's URL address field. You may also need to remove an extra space in the URL if one exists.)

About IRI

IRI is the world’s leading provider of consumer, shopper, and retail market intelligence and insights supporting 95 percent of the FORTUNE Global 500 consumer packaged goods (CPG), retail and healthcare companies. Only IRI offers the unique combination of integrated market information, automated and predictive analytics, innovative enabling technologies, and domain expertise. With IRI, leading retailers and manufacturers are able to quickly discover breakthrough insights driving smarter decisions and actions across the enterprise for breakthrough results. Companies around the world depend on IRI for improved productivity, stronger brands, and dramatic revenue growth. For more information, visit http://us.infores.com.