Insights from the Holiday Season!

Unpacking Consumer Behavior

Author

Peekage
February 14, 2024

Hi there 👋

Welcome to Peekage CPG Insights!

In this edition of Peekage CPG Insights, we focus on the holiday season's impact on consumer behavior within the CPG industry. As the holiday season fades, we're examining what drives consumer decisions and purchases, and how these behaviors shift during the holidays.

Here is a summary of our study:

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🌐 Top Channels for Discovering Holiday Food & Beverages

When it comes to finding new food and beverage items for the holiday season, three channels stand out prominently. Supermarket displays and promotions lead the charge, followed closely by the power of word of mouth and the influence of social media influencers. These methods are more than twice as popular as other channels like food and beverage magazines, food festivals or events, and email newsletters.

💡 For CPG brands, the dominance of supermarket displays and promotions, word of mouth, and social media influencers in driving holiday food and beverage discoveries highlights the need to focus marketing efforts on these channels. Their effectiveness, being more than twice that of traditional channels, underscores the importance of visual appeal, personal recommendations, and digital influence in consumer decision-making.

💰 Holiday Spending on Food & Drinks: What's the Budget?

Inflation and rise of grocery costs had their impact on holiday spending per family member too. A big chunk of consumers, 38.6%, are budget-conscious with spending under $200. But, 36.3% are in the $200-$400 zone, balancing festivity with finance. On the higher end, 15.3% are splurging between $400-$600, and then there are the 9.7% big spenders, going over $600. It’s a spread from savvy savers to lavish spenders – everyone’s got their own holiday budget playbook.

💡 These varied holiday spending habits indicate a market segmented by budget: a large base seeks value (under $200), a significant portion spends moderately ($200-$400), while a smaller, affluent group opts for premium purchases (over $400). Brands can thrive by diversifying their offerings to cater to these distinct spending capacities, ensuring appeal across the budget spectrum during the festive season.

Do you want to read more details? Click here to read the full report!

📅 Timing the Holiday Shop: When Do We Start?

Holiday shopping timing? It's a calendar mix! A strategic 35.1% start a few weeks before, beating the rush. Then there's the 32.5% who dive in a week before, embracing the holiday hustle. For the early birds, 13.5% get going more than a month in advance – talk about planning! Surprisingly, 13.9% are last-minute shoppers, riding the festive wire. And hey, 5% just skip the holiday shopping frenzy altogether. From planners to procrastinators, everyone’s got their own holiday shopping rhythm.

💡 CPG brands should be prepared for a surge in demand a few weeks before the holidays, as 35.1% of consumers start their shopping then. Additionally, ensuring stock availability and efficient customer service is crucial up to the last minute, catering to the 13.9% of last-minute shoppers. A steady and well-managed supply chain throughout the holiday season will cater to the diverse shopping schedules of consumers.

🍽️ Food Favorites for Holiday Feasting

When it comes to holiday food choices, tradition rules the table with 68.6% opting for classic meals like turkey, ham, or roast beef. But let's not forget the sweet tooth – desserts and sweets are a must for 60.6%, and baked goods like cookies and cakes tempt 61.1%. Appetizers and finger foods also have their fans, with 53.5% adding them to the festive spread. Seafood specialties reel in 14.4%, while the same percentage seeks organic and health-focused options. International cuisine adds a twist for 11.2%, and vegan or vegetarian options cater to 8.9%. It’s a smorgasbord of tastes, from time-honored recipes to health-conscious dishes.

💡 For the holidays, CPG brands should prioritize traditional dishes (68.6%) and cater to the high demand for desserts (60.6%) and baked goods (61.1%). Diversifying into appetizers, seafood, organic, international, and plant-based options can also attract specific consumer segments, reflecting the varied palate of holiday shoppers.

About Peekage

Peekage is an insightful product testing platform that provides affordable and fast consumer insights for CPG brands by collecting data through targeted at-home product testing and retail sampling.

Marketing teams leverage Peekage to boost awareness, drive sales, and increase retail velocity, and product and innovation teams use Peekage to run deep in-home product testing to optimize products, packaging, positioning, and messaging.