Ominous economic conditions fueled by debt ceiling uncertainty and sticky inflation are taking a toll on consumer confidence while compelling consumer products companies to build resilience in pursuit of profitability. The University of Michigan’s Index of Consumer Sentiment in May fell to 57.7 from ... READ MORE >
Consumer products
Are the good times in consumer spending coming to an end?
American consumers have shown remarkable resilience as the economy has rebounded from the depths of the pandemic. Overall spending has remained robust, despite elevated inflation and rising interest rates. But that could be changing. Lower-income consumers have started to show cracks in demand, and that ... READ MORE >
Consumer products M&A insights
The market for mergers and acquisitions in the consumer products industry has cooled from the frothy levels of a year ago. Closed deal activity slowed for the fourth consecutive quarter, according to data from PitchBook. This trend has continued as investors remain cautious given the uncertain economic ... READ MORE >
Consumer products holiday season insights: Thanksgiving holiday sees consumers continue to spend
Over the Thanksgiving weekend, consumers showed they are not yet ready to pull back on the robust spending that has driven economic activity over the last three years. Consumers equipped with $1.8 trillion of excess savings, compared with the first quarter in 2020 (approximately 80% held by the upper two ... READ MORE >
Consumer products holiday season insights: The return of the shopper
The shift of the coronavirus crisis from a pandemic to an endemic state has brought with it the return of the holiday shopper and traveler. Consumers continued to demonstrate a willingness to spend against inflation headwinds with holiday-focused retailer sales in October 2022 coming in at 6.45% ... READ MORE >
Consumer products holiday season insights: Retailers’ stocks are full going into the holidays
Retailers’ inventory levels are heavy going into the holiday season as supply chain pressures eased (evidenced by the latest readings in the RSM US Supply Chain Index) and consumer demand shifted away from products and toward experiences. Consumer goods companies have discounted product to right-size ... READ MORE >
Consumer products holiday season insights: Retail holiday shopping expected to be strong this year
With the holiday shopping season already begun, RSM forecasts nominal retail sales from October through December to increase between 6.5% and 8.0% on a year-over-year basis. Given that October retail sales are set to be released on Nov. 16—and because of a shift in consumer and retailer shopping ... READ MORE >
Consumer products M&A insights from the third quarter
Based on information available as of Oct. 23, 2022 from PitchBook Data, Inc., consumer products closed deal activity continued to slow, contracting for the third consecutive quarter. Current economic challenges, including inflationary pressures and the resulting shift in consumer discretionary spending, ... READ MORE >
Food manufacturing job numbers could signal slowing food inflation
Last Friday’s jobs report brought good news for the food manufacturing industry and a potential signal that surging food costs may begin to temper. The food manufacturing industry added 8,300 non-supervisory and production jobs in September representing a monthly increase of 0.6% and an increase of ... READ MORE >
Resale is big business and an opportunity for middle market consumer goods companies
The resale industry is expected to exceed new goods apparel growth by 16 times, according to Bloomberg, increasing the market from $9 billion in 2020 to $51 billion by 2026. In 2010, 4% of closets consisted of secondhand clothing; in 2021 that has increased to 9%, and projections are as high as 27% by ... READ MORE >