Commentary

Shelving Products: CPG, Beauty, OTC Health Sectors See Reduction In Consumer Spending

Email teams own only a small piece of the messaging for CPG, Beauty and Over-the-Counter (OTC) health products. But their jobs are affected by the fact that consumers are spending less due to inflation, judging by The 2023 CPG Customer Journey, a study by Tinuiti.

Overall 49% of consumers are buying fewer beauty products, 33% are spending less on food and beverages and 26% have reduced their OTC Health purchases.

Gen Z is slightly different. Thirty-nine percent say they have reduced their spend on beauty, while 27% are spending less on food and beverages and 30% have cut their spending on health. 

But while 49% of baby boomers are spending less on beauty products and 36% less on food and beverages, only 21% have reduced their spending on health.  

That is only one area in which generations differ in their behavior. In general, consumers have purchased these products on the advice of influencers: Beauty (70%), food and beverage (60%) and OTC health (59%). 

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Gen Z is more likely to rely on influencer recommendations for beauty (87%), food and beverage (85%) and OTC Health (78%).

General behavior is also changing in the aftermath of the COVID-19 pandemic: at least 35% of respondents in each product category are less likely to order online or buy online, pick up in store (BOPIS)., versus 20% who expect to use these services more.   

Email ranks far down in the list of channels through which people have heard about a product and then went on to buy it in the past year: 

  • Social media — 45%
  • Television — 39%
  • In-store displays or signs — 25% 
  • Search engines — 17% 
  • Online marketplaces — 16% 
  • Streaming video service or live stream — 14% 
  • Email message — 10%
  • Print newspapers/magazines — 9% 
  • Podcasts — 7%
  • Radio — 6%
  • Billboards — 5%
  • None of the above — 16%

Email has the same percentage in hearing about over-the-counter health: 

  • Television — 34% 
  • Social media — 27% 
  • In-store displays or signs — 21% 
  • Search engines — 19% 
  • Online marketplaces — 11% 
  • Streaming video service or live stream — 11% 
  • Email message — 10%
  • Print newspapers/magazines — 8%
  • Podcasts — 5% 
  • Billboards — 4%
  • None of the above — 25%

Email has a lower place in the prepackaged food or beverage products: 

  • Television — 36%
  • Social media — 30% 
  • In-store displays or signs — 27% 
  • Search engines — 12%
  • Offline marketplaces — 12%
  • Print newspapers/magazines — 11%
  • Streaming video service or live stream — 10% 
  • Email message — 8%
  • Radio — 7% 
  • Billboards — 5% 
  • Podcasts — 5% 
  • None of the above — 22%
Tinuiti polled more than 3,000 U.S. consumers from February 16-23, 2023 in three product-based surveys.
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