Niq Global Intelligence Plc · NYSE:NIQ

Niq Global Intelligence — NielsenIQ — SFA State of the Market (June 2024)

28 slides from Niq Global Intelligence's conference presentation, June 2024

Slide 1: FullView Coverage
FullView Coverage Retail Consumer Product Expansive and granular retail Largest and most accurate Unparalleled item coding coverage for the industry consumer panel in the scale and granularity industry Traditional B&M | DTC 100K+ omni panelists 2.5T transactions a week Amazon | Social Selling Calibr
Slide 3: Pivotal Moment as the CPG Ecosystem Absorbs Multiple, Foundational Shocks
Pivotal Moment as the CPG Ecosystem Absorbs Multiple, Foundational Shocks Shocks Financial schizophrenia – booming markets, Manufacturers returning spending but lingering concern & struggle CPG Cultural transformation – Evolving Ecosystem consumer values, social & political fragmentation, COVID resp
Slide 5: The consumer environment has strong fundamentals but still faces trepidation
The consumer environment has strong fundamentals but still faces trepidation Economic Indicators are Strong… …Yet Consumer Reality is Strained https://www.cnn.com/business/live-news/jobs-report-may-06-07-24/index.html https://www.cnbc.com/2024/06/12/stock-market-today-live-updates.html Source: NIQ 2
Slide 6: Pressured U.S. consumers have morphed their ways of working and living
Pressured U.S. consumers have morphed their ways of working and living Expect a year of redefined consumer values Homebody Waste- Preventative Stress Planned Convenience lifestyle avoidance health management budgeting seeking plan ahead eat more from prefer the ability proactive with hard to balance
Slide 7: Mental health increasingly part of consumer wellness priorities
Mental health increasingly part of consumer wellness priorities According to the 2024 World Happiness Report, #23 the US has dropped out of the top 20 for the first time the report’s history. 22% NIQ Health Shopper Study households reporting depression or anxiety © 2023 Nielsen Consumer LLC. All Rig
Slide 8: Sustainability claims continue to grow across the store
Sustainability claims continue to grow across the store —~ Upeycled /- Minority Owned J va Regenerative Agriculture ra [EPA Certified [Cage Free 25% [ 5 d } of Compostable y- Women Owned Plastic Free a 1% For The Planet Member Cert 20% + Renewable packooindl Content Biobased Product 15% J Claim Cert
Slide 9: Digitization of Commerce will Create Totally New Consumption Patterns
Digitization of Commerce will Create Totally New Consumption Patterns Hyper-Personalization Artificial Intelligence “Most customers trust the company to select the majority of their weekly groceries for them, and 72% of all items purchased are chosen by the algorithm.” Earth Fare and GenoPalate The
Slide 11: Retail Media: Consumption is becoming ever more digitized
Consumption is becoming ever more digitized Digital Shopping Penetration 0.3% 2.5% 0.6% 0.1% 0.1% 6.6% 12.5% Retail 19.2% 24.2% 29.3% 93.3% “Retailmedia” 87.2% 78.3% 75.2% 70.6% Media Total Store Health & Beauty Pet Care Household Care Food Care Omni Buyers Online Only Buyers In Store Only Buyers (B
Slide 12: This transformation is shifting the role of the store
This transformation is shifting the role of the store From To Incremental $ Traditional Retail Contribution Audience Consumer Attention Engagement Traditional Retail Stable supply Fulfillment Center Operational efficiency © 2023 Nielsen Consumer LLC. All Rights Reserved. 12
Slide 13: Consumer Attention is the new Currency
Consumer Attention is the new Currency Social Commerce Ascending Celebrity Brand Takeover #2 #2 #9 40% 100% China UK US $725M 700% Personal care e-commerce retailer Cosmetics e-commerce retailer Beauty & Wellness e-commerce retailer 750% Source: NielsenIQ Rakuten, TikTok Shop, Total Health & Beauty,
Slide 14: Audience Engagement takes many forms
Audience Engagement takes many forms In Store Experiences Digital + Physical Media Media Platform Integrations Target partnering with Ulta to bring a premium beauty experience into their store Deepening partnerships with footprint media assets in hopes of finding and monetizing audiences Merryfield
Slide 15: This transformation is shifting the role of the store
This transformation is shifting the role of the store From To Incremental $ Traditional Retail Contribution Audience Consumer Attention Engagement Traditional Retail Stable supply Fulfillment Center Operational efficiency © 2023 Nielsen Consumer LLC. All Rights Reserved. 15
Slide 16: Pressure on the shelf is greater today than before the pandemic
Pressure on the shelf is greater today than before the pandemic, with average items across the store declining. Today Pre-Pandemic Labor Shortages 88% 81% Offer Cubside Pick-up Sell Groceries Online Online & Planned Feature Support In-Store 85% Display Support Online For Curbside Everyday In-Store 6
Slide 17: Shelf simplification has reduced the number of UPCs selling since 2020
Shelf simplification across the store has reduced the number of UPC’s selling since 2020 By Department vs. 4Y Baby Care -11.2% Dairy -11.6% -8.8% -6.6% Deli Frozen -11.5% Total Store Grocery -10.8% HBC -4.9% Household Care -12.4% Pet -2.3% Source: NIQ RMS Data Calendar Year 2023 vs. 2020 © 2023 Niel
Slide 18: Almost 40% of retailers plan to reduce SKUs in the next months
Almost 40% of retailers plan to reduce SKUs in the next 12 months. Of them, nearly half say they’ll do so to simplify shelves. 47% 19% 13% 9% 59% Yes, to make room Yes, to reduce No plans to Yes, to simplify Yes, for other reasons for expanded inventory reduce SKUs the shelves private brand Retailer
Slide 20: Innovation is a key pillar of planned growth
Innovation is a key pillar of planned growth Manufacturers with growing innovation sales are 2x more likely to grow total sales… But only 7% of manufacturers grew innovation sales in the past year! Source: Advantage Sales Manufacturer Outlook Study April 2024 © 2023 Nielsen Consumer LLC. All Rights
Slide 21: Flavor, ingredients, collaborations, emerging consumer needs and behaviors
Flavor, ingredients, collaborations, emerging need consumer needs and behaviors © 2023 Nielsen Consumer LLC. All Rights Reserved. 21
Slide 22: Stretching innovations into new categories
Stretching innovations into new categories 1 out of 4 of all new brand launches in the US in the past year were brand extensions and 23% higher sales for brand extensions than completely new brands in their first year in the market https://nielseniq.com/global/en/insights/education/2023/say-yes-to-t
Slide 23: Tracking ingredient and search trends across categories provides inspiration
Tracking ingredient and search trends across categories provides inspiration Search growth in F&B and Beauty 33% | High Protein 110% 100% Maitake 48% | Sriracha 90% Bitter Melon Prickly Pear 80% 33% | Coffee “Growth Drivers” – US Sales 4yr CAGR L Theanine Lions Mane 70% Camu Camu Yuzu 60% Ashwagandh
Slide 24: Mushrooms, fungi, mycelium, mycoprotein growing
Mushrooms, fungi, mycelium, mycoprotein growing Mushrooms, fungi, mycelium, mycoprotein growing +29.3% | All Mushrooms $ % change vs 4 years ago Macro Trends Body health (nootropics/adaptogens, protein, fiber, antioxidant, anti-inflammatory) Plant-based Flavor / Umami Cultural fascination Source: NI
Slide 25: Sea vegetables growing in sales across the store
Sea vegetables growing in sales across the store +32.6% | Sea Vegetables $ % change vs 4 years ago Macro Trends Sustainability Globalizing palate Plant-based Clean label ingredient Health vitamins, minerals, phytonutrients Source: NIQ, Retail Measurement Services – NIQ Product Insight, powered by La
Slide 26: It all comes back to delivering on relevant consumer needs
It all comes back to delivering on relevant consumer needs Expect a year of redefined consumer values Homebody Waste- Preventative Stress Planned Convenience lifestyle avoidance health management budgeting seeking plan ahead eat more from prefer the ability proactive with hard to balance 22% 40% 33%
Slide 27: Key Themes of the Consumer Landscape
Understand the unique and specific circumstances of Evolving struggle that are emerging for consumers as they Consumer Needs face an increasingly stressful environment with new platforms to engage with Key Themes of Be interesting. Demonstrate an ability to engage an the Consumer Retailmedia audienc
Slide 28: No matter your brand size, you deserve the Full View
Download this presentation No matter your brand size, you deserve the Full Unlock 3 free Byzzer reports View™ Get a free consultation © 2024 Nielsen Consumer LLC. All Rights Reserved. 28

NielsenIQ — SFA State of the Market (June 2024) on 6ix

Niq Global Intelligence — NielsenIQ — SFA State of the Market (June 2024)

Slide 1: FullView Coverage

Slide 2: State of The Market

Slide 3: Pivotal Moment as the CPG Ecosystem Absorbs Multiple, Foundational Shocks

Slide 4: Consumers

Slide 5: The consumer environment has strong fundamentals but still faces trepidation

Slide 6: Pressured U.S. consumers have morphed their ways of working and living

Slide 7: Mental health increasingly part of consumer wellness priorities

Slide 8: Sustainability claims continue to grow across the store

Slide 9: Digitization of Commerce will Create Totally New Consumption Patterns

Slide 10: Retailers

Slide 11: Retail Media: Consumption is becoming ever more digitized

Slide 12: This transformation is shifting the role of the store

Slide 13: Consumer Attention is the new Currency

Slide 14: Audience Engagement takes many forms

Slide 15: This transformation is shifting the role of the store

Slide 16: Pressure on the shelf is greater today than before the pandemic

Slide 17: Shelf simplification has reduced the number of UPCs selling since 2020

Slide 18: Almost 40% of retailers plan to reduce SKUs in the next months

Slide 19: Manufacturers

Slide 20: Innovation is a key pillar of planned growth

Slide 21: Flavor, ingredients, collaborations, emerging consumer needs and behaviors

Slide 22: Stretching innovations into new categories

Slide 23: Tracking ingredient and search trends across categories provides inspiration

Slide 24: Mushrooms, fungi, mycelium, mycoprotein growing

Slide 25: Sea vegetables growing in sales across the store

Slide 26: It all comes back to delivering on relevant consumer needs

Slide 27: Key Themes of the Consumer Landscape

Slide 28: No matter your brand size, you deserve the Full View