Channel dynamics

Consumers’ life-stage affects their channel selection

Although Take-Home consumption is in decline, some channels are managing to grow share and attract more buyers into stores. We have plotted the correlation between penetration growth and value share growth below.

% Value Share Change and Penetration Change — FY 23 vs FY 22
Bubble size = Value Sales

The winning Take-Home channels are those that are closer to home, or which bring the product to the home – including supermarkets, CVS, PVS, online pure players and e-retailers. Social commerce – including Facebook and TikTok – are gaining more buyers, but they are spending less so the channel's share is not growing.

Whether shopping for In-Home or Out-of-Home consumption, the core channel is different for each generation, and the way they chose to spend changed over 2023.

In the Take-Home market, Young Singles/Couples spent more money across channels, while Families with a Baby and Kids were more cautious, reducing spending across channels. Families with Teens/Mixed Adults sought more value for money by increasing spending on online platforms and modern trade stores, while the silver generation bought more products from PVS and through social commerce.

FMCG manufacturers will benefit from prioritising the channels where their key target buyers have increased spending, while securing their core channels. Retailers need to to find the right assortment for those shoppers who increased spending in their channel.

Teens take part in the most Out-of-Home activities, and spend more across all channels, while first jobbers are not only spending more in their core channel, CVS, but also in restaurants and beverage shops.

Consumers in their 30s have rationalised their OOH purchases by increasing spending in the CVS channel while spending less in restaurants and beverage shops, stalls and kiosks. Those aged in their 40s have also adjusted their habits, by reducing PVS spending while enjoying spending more in restaurants and beverage shops.

These changes in consumer demand require marketers to tailor their channel and product strategies to fit.