The Impact of Changing Family Lifestyles on Consumer Packaged Goods
Datamonitor
October 25, 2005 80 Pages - SKU: DFMN1200761
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Introduction
Families account for a very large proportion of total CPG spending. Societal changes and the demands of increasingly busy lifestyles mean that Families are no longer a homogeneous group. This report will enable CPG players to gain the trust of Families by creating a partnership between them and their brands, and by meeting the specific needs and expectations of today's Families.
Scope
- Detailed demographic data covering Family structures by country and type of Family.
- Complete map of Young Families' changing spending on food, drinks and personal care by category.
- In-depth analysis of the changing need states, expectations and aspirations of Families and their impact on CPG spending.
- Actionable recommendations enabling CPG payers to target Families by meeting their increasingly specific needs and developing a relationship of trust.
Highlights
Overall, the number of parents of Young Families in the US will fall from1.81m in 2004 to 1.71m in 2009, and from 4.77 to 4.51 in Europe over the same period.
The act of preparing and sharing meals binds consumers in general and Families in particular, with 69.3% of consumers in Families considering cooking inspiring meals to be important.
51.9% of all members of Families consider their home to be an essential hub of social connectivity.
Reasons to Purchase
- Learn how the growing diversity of Family structures and ensuing need states create new opportunities for CPG players.
- Understand how purchasing habits change in the first two years of parenthood, and the key product categories that are affected.
- Benefit from actionable recommendations enabling manufacturers to target Families effectively and develop a partnership with them.
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- CHAPTER 1 EXECUTIVE SUMMARY
- The hot topic
- The future decoded
- Single-child Families are becoming more common
- The greater variety of Family structure means more diverse needs
- There are now fewer new Families
- The attitudes of Families may differ significantly from those of consumers without children
- But those attitudes may not be reflected by actions
- Manufacturers must help Families to realize their aspirations
- Action points
- CHAPTER 2 THE FUTURE DECODED
- Introduction
- Definition of Families
- TREND: Societal changes and lifestage complexity lead to more diverse family structures
- The growing phenomenon of "boomerang kids" extends the family lifestage
- TREND: Single-child Families are becoming dominant
- European and American Families now have fewer children
- There are important variations between countries
- Single-child Families are most prevalent in the UK
- US Families tend to have more children than in Europe
- There is now a greater variety of family structures
- TREND: The number of Young Families is decreasing
- Definition of Young Families
- The number of new Families is decreasing
- The number of new Families in the US is declining more slowly than in Europe
- TREND: The arrival of children leads to radical changes in CPG spending
- Spending in on-trade and foodservice channels falls severely after starting a family
- Income is the most important influence on Young Families' spending
- Drinking and dining out remain very valuable occasions
- Organic food and drink is the fastest growing area of family expenditure on CPGs
- Fresh food and vegetables are the most valuable market among Young Families
- The need for convenience boosts Families' spending on ready meals
- Having a child has very little impact on personal care expenditure
- INSIGHT: The attitudes of consumers with Families lead to new behaviors
- The majority of consumers with children want to spend more time with their Families
- Families replace friends in consumers' emotional hierarchy
- Consumers without children prefer to spend more time with friends
- Consumers with children are making efforts to spend more time with their Families
- Spending time with Family does not replace socializing with friends
- For Families, the home is the lynchpin of connectivity
- Shared meals are viewed as essential for family cohesion...
- ... however attitudes are not always reflected in behaviors
- The relatively simple tastes of many children and practical considerations limit experimentation
- Parents often stick to established favorite meals
- Cooking for a Family implies different priorities from cooking for a couple
- INSIGHT: Families have unmet convenience needs
- Families want simplicity, but not as intensely as those without children
- Consumers with children do not consider convenient products as important as others
- Consumers with Families are more willing to pay a modest premium for convenience
- INSIGHT: Families attach more importance to health but do not act accordingly
- Consumers with Families want to reduce their stress levels
- Families are particularly vulnerable to the nefarious effects of stress on health
- Consumers with Families do not act on this as much as could be expected
- Consumers with children do not try to improve their health through diet more than others
- INSIGHT: Families trust CPG manufacturers more than other industry sectors
- Consumers with children are generally less trusting
- Concern for children's health makes consumers with Families less trusting of food manufacturers
- CPG manufacturers are more trusted than other industry sectors
- Conclusions
- The needs of Families are far more diverse than in the past
- CPG players must build a partnership with Families by meeting latent needs
- CHAPTER 3 ACTION POINTS
- Introduction
- ACTION: Build a partnership with Families by developing trust
- Target mothers to reach Families through word-of-mouth
- Procter & Gamble's Tremor program is now targeting mothers
- Do not rely solely on word-of-mouth marketing with Families
- Target Families with healthy foods to boost trust
- Help inform and educate Families through simple, clear labeling schemes
- ACTION: Target family mealtimes
- Target family dining out occasions
- Develop concepts that facilitate family meals
- Help time-poor Families to serve good quality meals
- Offer high quality meal kits
- ACTION: Secure brand loyalty by targeting Young Families
- Take advantage of Young Families' changing shopping habits to secure loyalty
- Take advantage of Young Families' greater awareness of health
- ACTION: Make healthier foods appeal to children
- Offer healthier versions of existing products
- Make adult brands appealing to children
- Consider developing a new healthy eating brand to build trust
- Do not sacrifice taste for health
- Make healthy brands fun to avoid rejection by children of parents' choices
- Promote healthy eating and active lifestyles in communications
- ACTION: Encourage family shopping occasion
- Case studies: the Piggly Wiggly Pig Zone and the Dorothy Lane Market's Kids' Club
- CHAPTER 4 APPENDIX
- Supplementary data
- Young Families' expenditure by product category by country
- Chilled ready meals
- Frozen ready meals
- Take-away food
- Organic food and drink
- Drinks in the on-trade
- Meals through foodservice channels in the evening
- Fresh fruit and vegetables
- Make-up, skincare and fragrances
- Definitions
- Research methodology
- List of Tables
- Table 1: Family structures across Europe and the US, 2000-2005 (millions)
- Table 2: Number and percentage of consumers by family size, Europe and US, 2004 (millions and %)
- Table 3: Percentage of population by number of children in Family by country, 2004 (%)
- Table 4: Number of consumers by family size and structure by country, 2004 (millions)
- Table 5: Number of parents with one child under two years old by country, 1999-2009 (millions)
- Table 6: Total number of young Families by country, 1999-2009, by country (millions)
- Table 7: Change in expenditure on food, drinks and cosmetics of Young Families following the birth of a child, 2004 (%)
- Table 8: Young Families' expenditure by product market by country, 2004-2009 (US$m)
- Table 9: Consumer survey: Importance of spending more time with Family
- Table 10: Consumer survey: Importance of spending more time with friends
- Table 11: Consumer survey: "Please rate the extent to which you have spent more or less time with your Family in the past year"
- Table 12: Consumer survey: "Please rate the extent to which you have spent more or less time with your friends in the past year"
- Table 13: Consumer survey: "I regard my home as a place that helps me to connect with people"
- Table 14: Consumer survey: Importance of cooking inspiring meals for the Family
- Table 15: Consumer survey: "Please rate the extent to which you have cooked more or fewer inspiring meals for your Family in the past year"
- Table 16: Consumer survey: "Please rate the extent to which you have tried food and drinks that you hadn't tried before in the past year"
- Table 17: Consumer survey: Importance of living a less complicated lifestyle
- Table 18: Consumer survey: Importance of time-saving products and services
- Table 19: Consumer survey: "How much extra would you be prepared to pay for time-saving products and services?"
- Table 20: Consumer survey: Importance of reducing stress levels
- Table 21: Consumer survey: "Please rate the extent to which you have taken active steps to improve your health through diet more or less in the past year"
- Table 22: Consumer survey: Levels of consumer trust by industry sector (food and drinks manufacturers, personal care manufacturers, banks and insurance companies)
- Table 23: Consumer survey: "How often do you listen to the recommendations of friends and Family when choosing a product or service?"
- Table 24: Consumer survey: "How often do you ask for the recommendations of friends and Family when choosing a product or service?"
- Table 25: Young Families' expenditure on chilled ready meals by country, 2004-2009 (US$m)
- Table 26: Young Families' expenditure on frozen ready meals by country, 2004-2009 (US$m)
- Table 27: Young Families' expenditure on take-away food by country, 2004-2009 (US$m)
- Table 28: Young Families' expenditure on organic food and drink by country, 2004-2009 (US$m)
- Table 29: Young Families' expenditure on drinks in the on-trade by country, 2004-2009 (US$m)
- Table 30: Young Families' expenditure on meals through foodservice channels in the evening by country, 2004-2009 (US$m)
- Table 31: Young Families' expenditure on fresh fruit and vegetables by country, 2004-2009 (US$m)
- Table 32: Young Families' expenditure on make-up, skincare and fragrances by country, 2004-2009 (US$m)
- Table 33: Definitions
- List of Figures
- Figure 1: The expanded family status lifecycle model shows the trend of complexing lifestages which makes demographic segmentation and targeting all the more difficult
- Figure 2: Single-child Families are becoming the standard
- Figure 3: The UK has the highest proportion of single-child Families
- Figure 4: The number of young Families will decline in Europe as well as the US over the next five years
- Figure 5: Young Families' spending on organic food and drinks will be the fastest growing area of their expenditure over the next five years
- Figure 6: Two-thirds of consumers with children consider spending more time with their Families to be very important
- Figure 7: Consumer survey: The perceived importance of spending time with friends is much lower among consumers in Families
- Figure 8: Consumers in Families are spending more time with them
- Figure 9: Members of Families do not spend significantly less time with their friends than they did previously
- Figure 10: Families view the home as the hub of social connectivity
- Figure 11: Most consumers with Families consider preparing inspiring meals to be important or very important
- Figure 12: Although consumers with Families consider cooking inspiring meals more important than those without children, there is little difference in resultant behavior
- Figure 13: Consumers with Families are less experimental than those without children
- Figure 14: Consumers with Families aspire to a less complicated lifestyle
- Figure 15: Proportion of European workers who experience a high pace and intensity of work 1990-1995-2000
- Figure 16: Consumers with Families consider time-saving products and services slightly less important than those without
- Figure 17: Consumers with Families are prepared to pay more for convenience than those without children
- Figure 18: Consumers with Families perceive stress reduction as slightly more important than consumers without children do
- Figure 19: Consumers with Families do not make significantly more effort to improve their health through diet than those without children
- Figure 20: Consumers with Families are marginally more wary of food manufacturers' health-related claims than those without children
- Figure 21: One major insight from P&G's Tremor research is that Tremor's connectors exist throughout the product adoption curve
- Figure 22: Consumers with Families are less often influenced by word-of-mouth recommendations
- Figure 23: Consumers with children tend to ask for their friends, and Families' recommendations less frequently than those without children
- Figure 24: Clear, consistent health messages simplify healthy eating and appeal to Families
- Figure 25: Coca Cola's Family Diner website helps parents choose venues to take their children to
- Figure 26: Good quality meal kits can help time-poor Families to connect over meals
- Figure 27: Making existing brands healthier helps to target children by gaining the trust of parents
- Figure 28: Contrasting examples of non-impact healthy packaging and eye-catching and appealing packaging
- Figure 29: Novelty and fun are important in making brands appeal to children
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