NIQ Global Intelligence plc · NYSE:NIQ
NIQ Global Intelligence — Investor Presentation (2023)
30 slides from NIQ Global Intelligence's investor presentation, 2023
Slide 1: NIQ 2023 Consumer Outlook: Roadmap to growth in disruptive times
NIQ 2023 Consumer Outlook Roadmap to growth in disruptive times NIQ Global Thought Leadership 1 © 2023 Nielsen Consumer LLC. All Rights Reserved.
Slide 2: Contents
Contents 1 Understanding the disrupted consumer of 2023 2 Recession Track: Follow the money 3 What’s Next 2 © 2023 Nielsen Consumer LLC. All Rights Reserved.
Slide 3: Understanding the disrupted consumer of 2023
1 Understanding the disrupted consumer of 2023 Mapping consumer intentions across the globe. 3 © 2023 Nielsen Consumer LLC. All Rights Reserved.
Slide 4: The state of consumers is unsettled
Hopeful The state of Unsure about the future and bracing for extremes, consumers are in a constant Guarded state of skepticism. Volatility in consumers is everything from prices to weather events, has signaled a year of safeguarding, unsettled action-planning and hopeful strategizing around socio-ec
Slide 5: Global consumers say they are in a worse financial position this year
of global consumers say they are in a 39% worse financial position this year >> vs. 37% in Mid ‘2022 “In line with figures of mid-year 2023, consumers feel financially pressured compared to a year ago, but resilience is evident. Despite inflationary highs and global wage lows, there is a strong majo
Slide 6: Globally, many consumers are financially worse off due to…
Globally, many consumers are financially worse off due to… The economy High costs COVID-19 IMPACTED by BURDENED by ADAPTING to economic slowdown increased costs of ongoing pandemic living disruptions 42% worse off due to Only 32% worse off economic slowdown 74% worse off due to due to on
Slide 7: Complex fallout after consumers live through recent inflation highs
Complex fallout after consumers live through recent inflation highs Wages and spending cuts likely to linger across the globe Negative global wage growth Inflation may be past its peak For the first time this century, global monthly wages fall CPI forecast projections CPI Forecast Global Global excl
Slide 8: Rising prices are a global concern across countries
Rising prices are a global concern across countries % change November ‘22 average CPG price +7% Canada +11% United +14% Kingdom Germany +10% +22% France Poland +12% +12% +13% +123% +9% United States Italy Spain Turkey India +15% Mexico +25% Colombia Global: +13% +16% +9% Brazil New Zealand +90% Arge
Slide 9: Intense financial polarization in many markets
Intense financial polarization in many markets Better off financially Same as before Worse off financially Global 26% 35% 39% Indonesia 53% 29% 18% China 48% 36% 16% India 45% 6% 49% Brazil 39% 33% 28% South Africa 38% 21% 41% Colombia 35% 45% 21% Thailand 34% 27% 39% Saudi Arabia 33% 38% 30% Egypt
Slide 10: Setting the spending tone for 2023
46% 46% Mental Financial / wellness job security Setting the spending tone Maintains 1st rank Up from 5th rank for 2023 vs. Mid ‘22 vs. Mid ‘22 What’s more important to consumers in 2023? 46% 44% Physical Saving for wellness unforeseen circumstances Up from 2nd rank Maintains 4th rank Source: Nielse
Slide 11: Setting the spending tone for 2023: top consumer concerns
40% Food and grocery prices 34% Setting the Utility costs 22% 23% spending tone for 2023 20% Economic downturn 17% Top consumer concerns 16% COVID-19 19% 11% Fuel and transportation costs 16% 2023 Mid 2022 Source: NielsenIQ 2023 Consumer Outlook Survey vs. Mid-year Outlook July 2022 - Note: 2023 stu
Slide 12: Follow the money
2 Follow the money 2023 Assessing global spending shifts amidst a pending recession. 12 © 2023 Nielsen Consumer LLC. All Rights Reserved.
Slide 13: Recessionary mindset: global majority feeling constrained by recession
Recessionary mindset The global majority feeling constrained by recession Current impressions Future outlook Spending reality 62% * 48% * 38% Take they think own/use are currently living Minimize electricity expect to be in a recession only have enough for food, reusable bags usage in a recession fo
Slide 14: Hotspots of recession according to global consumers
Hotspots of recession according to global consumers % respondents who currently feel their country is in a recession 63% Canada 84% United 61% Kingdom Germany 64% 60% France Poland 59% 70% 67% 89% 77% United States Italy 89% Spain Turkey India South Korea 66% 46% Egypt Mexico 41% 54% Saudi Arabia Th
Slide 15: Wallet shifts during a pending recession
Wallet shifts during a pending recession CPG categories central to 2023 consumer spending intentions Spending less Same as before Spending more In home Financial Savings / Paying off OOH Dinning / Eating 44% entertainment services Investments debt 38% Utilities 48% 47% 41% 41% 37% Grocery & househol
Slide 16: Many categories see strong sales growth year-over-year
Many categories see strong sales growth year-over-year 5.9% Global* Trend Global* sales growth +5.9% Beverages 7.1% with 4 out of 12 Fresh food 4.6% categories outpacing the Ambient food 7.7% global* average Frozen food 5.7% Snacking 10.8% Pet Care remains Dairy 5.7% the fastest Petcare 11.2% growin
Slide 17: Global inflation of consumer goods continues to rise
Globally, inflation of consumer goods continues to rise. Consumers are spending more, but purchasing less volume Global CPG Price Inflation Rate 12.9 13.4 11.8 12.2 10.8 10.0 9.1 7.6 5.9 6.1 6.3 5.1 Dec '21 Jan '22 Feb '22 Mar '22 Apr '22 May '22 Jun '22 Jul '22 Aug '22 Sep '22 Oct '22 Nov '22 % Chg
Slide 18: Wallet shifts during a pending recession
Wallet All forms shifts of discretionary during a pending spending recession under consumer scrutiny CPG / FMCG positioned well to capture shifted demand from other areas Spending intentions for next 12 months net change in spending (pt. change) Utilities 23 Groceries and household items 19 Fresh pr
Slide 19: The 2023 Economic Divide
The 2023 Economic Divide Insecurity limits spending power of consumers Thrivers Saved money and feel more financially secure 9% 10% 6% 14% 13% Unchanged 12% Not impacted and continue to spend the same Cautious 38% 38% 39% Not impacted financially but are cautious with spending Rebounders 21% 19% 16%
Slide 20: Deep polarization in spending intentions across the economic divide
Deep polarization in spending intentions across the economic divide Yet, consumers of all circumstances plan to increase CPG / FMCG spending in 2023 Spending intentions for next 12 months net change in spending (pt. change) Total Global Strugglers Rebounders Cautious Unchanged Thrivers Life Expenses
Slide 21: A view into the most vulnerable
A view into the most vulnerable “Strugglers” who splurge: many feel more spending freedom than ‘Cautious’ consumers % respondents – “I am able to spend freely” 21% 44% 29% 32% 13% 8% Strugglers Rebounders Cautious Unchanged Thrivers Unique Priorities - % “Strugglers” respondents 37% 33% 44% say rela
Slide 22: A look into the financially flexible
A look into the financially flexible Cautious comfort: Many “Thrivers” aligned to the “Cautious” with careful spending % respondents 10% 51% 44% 42% 39% 38% 40% 20% 17% 8% "I spend freely" "I live comfortably" "I only have enough for basics" % Global % Thrivers % Cautious Unique Priorities - % “Thri
Slide 23: Store brand sales steady and rising across markets
Store brand sales steady and rising across markets Private label share of sales over time Share Pt. Growth vs. 2 years ago vs. year ago Spain 43.5% +3.2 +2.2 United Kingdom 43.0% +1.0 +0.9 Germany 40.2% +0.7 +1.5 Poland 34.0% +0.5 +1.0 France 31.9% -0.3 +0.5 Italy 30.1% +1.6 +1.3 Australia 23.4% +0.
Slide 24: This Not That: understanding states of saving
Understanding states of saving Staking strategy around the ways consumers themselves choose to save on expenses This Not That Top-ranked Saving Strategies Bottom-ranked Saving Strategies Loyalty points over loyalty 25% loyalty points 12% Stick Shopping at stores with to my regular brands, irrespecti
Slide 25: Discounters are growing in importance in key markets
Discounters are growing importance in key markets across the world Discount retail channel share of sales over time Share Pt. Growth vs. 2 years ago vs. year ago Poland 71.4% +5.2 +3.0 Canada 45.2% +2.4 +1.8 US 41.6% +2.1 +0.5 Germany 38.2% -0.9 0.0 Italy 22.5% +1.5 +0.8 United Kingdom 13.2% +1.4 +0
Slide 26: What's Next?
2 3 What’s Next? Assessing the implications of changed relationships to consumption. 26 © 2023 Nielsen Consumer LLC. All Rights Reserved.
Slide 27: Key themes emerge from global risk assessment
Key themes emerge from global risk assessment Polarization & insecurity cloud the short-term, environmental risks permeate both short- and long-term Global risks ranked by severity, as reported by World Economic Forum risks that are related to the environment/sustainability Short Term (2-year horizo
Slide 28: Sustainability will be top of consumer and corporate radar in 2023
Sustainability will be top of consumer and corporate radar in 2023 Consumers want to be more sustainable and two rapidly emerging drivers of change, governance and cost will supercharge corporate focus in 2023. These drivers will force companies to Role of governance Exploding costs due to the and m
Slide 29: Key risks signal the consumer value reset of 2023
Key risks signal the consumer value reset of 2023 Coming soon: NIQ to highlight the changed ways in which consumers define and seek value Less More Example product / brand purchase factors: interest interest Health & wellness values: ▼11% ▲33% “improving or supporting immune system health” Social &
Slide 30: Key takeaway: Redefined values
Key takeaway: REDEFINED VALUES Changed relationships to consumption have led to a new value system among consumers. Sign of the Times Stay tuned as NIQ unpacks new manifestations of consumer values in 2023 and beyond. 30 © 2023 Nielsen Consumer LLC. All Rights Reserved.
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