Consumer CPG spending up 21% in May over last year
Household consumer packaged goods spending is starting to level off compared to the first couple of months of the COVID-19 pandemic.
Spending in May rose 21% compared to May 2019, but not quite as impressive as the year-over-year increase in April 2020 (+29%) or March (+36%). These findings are part of new data released by NCSolutions, which said that Americans remain in the “home confined buying stage” of the COVID-era due to the elevated household spend on CPG products, which indicates that consumers are eating at home more often.
Flour, extracts, frozen poultry and meat are among the categories that continue to have higher than usual sales. Reports in April about potential meat and poultry shortages appeared to make an impact on May sales, according to the study. Overall, sales of meat were up 32% when compared to the same period last year.
"As Americans venture out more, there will be some adjustments to their shopping behavior,” said Linda Dupree, CEO, NCSolutions. “ However, we have seen consumers embracing some of the behaviors they found during the height of the pandemic – such as more cooking and entertaining at home. It's too early to tell what is likely to have a lasting effect, but the latest trend data shows buyers may be settling into these new routines.”