The Impact of Changing Family Lifestyles on Consumer Packaged Goods

Published by: Datamonitor

Published: Oct. 25, 2005 - 80 Pages

Table of Contents

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

Abstract

• 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.

• 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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