Rise in Holiday Spending Projected for Key Food/Household Categories

November 7, 2012

According to an article released a couple weeks ago by the Radio Advertising Bureau, Nielsen is expecting an increase in sales across five key departments this holiday season (food, beverages, alcohol, health/beauty, and homecare). Spending for November and December 2012 is predicted to reach $98.3 billion, which is a 2.3% increase from last year. This increase in 2012 holiday spending could be a result of higher consumer confidence levels and increased impulse buying and consumer intent.

Eighty-nine categories were examined within the five departments and items projected to do well over the holidays include:

• Alcoholic Beverages – Wine is projected to lead this category (6% dollar and unit growth), followed closely by liquor and beer (3% dollar and unit growth).
• Food – Health-conscious consumers and home cooking could be more prevalent this holiday season as shown by the continued success of fresh produce (expected holiday sales and unit growth of 4.6% and 3.7%). Nuts (7.5% dollar growth and 15.1% unit growth) and jams/jellies/spreads (7.1% dollar growth and 1.1% unit growth) are also expected to do well.
• Beverages – Coffee is expected to lead all beverages in growth (10% dollar and 7% unit). Bottled water is predicted to do well also (4.4% dollar growth and 3.8% unit growth).
• Health and Beauty Aids – Vitamin sales should expect a great amount of growth this holiday season (9% dollar and 9.2% unit).
• Home Care – Pet care is projected to lead this category (5.9% dollar growth and 3.1% unit growth).

In regards to gift-giving, Nielsen’s Holiday Shopping Survey revealed that gift cards and technology products are tied for the lead (11% each) as products that respondents are planning to spend more on this year. Also, the number of respondents saying that they are planning to spend more with online retailers leads all channels at 18%, which is up almost 13% from last year.

Research Director, Inc. can be a valuable resource to you and your station this holiday season, as your station targets accounts from the departments above. Our experts have access to an abundance of research for the hot categories of the holiday season, and we are here to help get you on that buy!

Sources:  Radio Advertising Bureau, 10/25/12; Convenience Store News, 10/12/12

-Morgan O’Connor, Production Specialist

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