NIQ Global Intelligence plc · NYSE:NIQ
NIQ Global Intelligence — Investor Presentation (January 2024)
35 slides from NIQ Global Intelligence's investor presentation, January 2024
Slide 1: NIQ 2024 Consumer Outlook
NIQ 2024 Consumer Outlook Navigating the 2024 pressure points to growth NIQ Thought Leadership January 2024 © 2024 Nielsen Consumer LLC. All Rights Reserved. © 2024 Nielsen Consumer LLC. All Rights Reserved.
Slide 2: The state of consumers is pressured
Heading into 2024, The state of consumers is pressured • Consumers have been tested in more ways than one over the past year and beyond. Uneasy • Resilience is emerging through change as consumers shift survival tactics into long-term behavioral shifts. Resilient • This year, expect: continued polar
Slide 3: Rising costs of living remain top of mind for consumers
Rising costs of living remain top of mind for consumers Concerns about geo-political crisis climb to the forefront this year Top 10 concerns among global consumers Ranking change vs. Mid 2023 1 Rising food prices 36% = same 2 Increasing utilities 19% = same 3 Economic downturn 17% = same 4 Global co
Slide 4: Polarized financial situations remain
Polarized financial situations remain 34% of consumers feel worse off, but less so than a year ago Consumer financial position Sentiment year-over-year (% respondents) 39% 37% 34% 34% 29% 28% 26% 25% Mid 2022 Jan 2023 Mid 2023 Jan 2024 Worse Off Better Off Source: NIQ Consumer Outlook 2024, Global Q
Slide 5: Consumers can't escape the cost-of-living crisis
Consumers can’t escape the cost-of-living crisis Causes of worsening financial situations among consumers Of the 34% of consumers who are worse off this year… 77% Increased costs of living 74% 78% 77% 41% Economic slowdown 32% Job insecurity / loss 42% 41% 32% 39% 31% 30% 63% 31% 26% Mid 2022 Jan 20
Slide 6: Financial polarization will fragment consumer spending classes
Financial Extreme concentration of capital among the wealthy Top Top 10% 10% own own ~60-80% ~60-80% of of global global wealth polarization wealth will fragment consumer spending classes Share of total wealth by region (%) Bottom 50% Middle 40% Top 10% 90% The extreme polarization of wealth will co
Slide 7: Steady and polarized
Playing the field of financially polarized consumer groups The Global Economic Divide - Tracking financial situations and responses Strugglers Rebounders Cautious Unchanged Thrivers Steady and polarized . The cautious middle of global consumers persists – but 19.0% 19.0% 38.0% 14.0% 9.0% Jun 2022 co
Slide 8: Wage growth expected to lag CPI in most markets
Continued pressure on consumers as rate of wage growth expected to lag CPI in most markets Average wage growth forecasts for 2024 compared to consumer price inflation Consumer price inflation Red = inflation above wage growth Green = wage growth above inflation 2.5 4.6 2.8 1.9 3.5 4.8 3.6 2.7 2.6 3
Slide 9: U.S. FMCG price pressures continue to compound
Using the U.S. as an example: FMCG price pressures continue to compound Unit Price % Increase $131 $124 $111 $100 $105 Cost of goods are 31% higher vs. 4 years ago +5.0% +6.1% +11.1% +5.9% 2019 2020 2021 2022 2023 Source: NielsenIQ, Total US xAOC, Annual Unit Price % Change 52 weeks to December 30,
Slide 10: Consumer inflation growth forecasted to slow in 2024 and beyond
Consumer inflation growth forecasted to slow in 2024 and beyond, but decelerated growth is not deflation Global CPI % growth forecast 8.7 Global inflation 6.9 forecasts indicate prices will ease 5.8 beyond 2024 5.1 4.7 4.6 4.1 4.2 3.9 3.8 3.7 3.6 3.6 3.5 3.2 3.2 3.2 2.7 2.7 2010 2011 2012 2013 2014
Slide 11: Global FMCG prices continue to rise at slower rates
After peaking in January ‘23, global FMCG prices continue to rise, but at slower rates Global FMCG Equiv. Vol. Price % Change 13.6 13.4 Annual Inflation Rate 13.2 13.2 13.2 11.8 10.5 9.8 8.9 7.8 7.4 6.6 6.1 +9.9% Food Non-Food +11.7% +7.8% % Chg. Dollars EQ Vol % Chg. FMCG +9 -1 Dollars +11 +12 +10
Slide 12: What does this mean for retailers & brands?
Connecting the dots What does this mean for retailers & brands? © 2023 Nielsen Consumer LLC. All Rights Reserved.
Slide 13: Global inflation is still propping up FMCG performance
Global inflation is still propping up FMCG performance with volume growth consumption static or soft Dollar % Chg. EQ Vol % Chg. Dollar % Chg. EQ Vol % Chg. Total Food 10% -2% Total Non-Food 8% 0% Confect. & Snacks 12% 0% Pet Food 14% -1% Ambient / Shelf- stable Food 10% -4% Health & Beauty 10% +1%
Slide 14: Rising prices are still plaguing several key departments
Department Inflation Heat Map - Annual EQ Vol Price % Change Total FMCG: +10% Frozen Food +10% Confect. & Snacks Paper Products +12% +9% Rising prices are still Food Health & Beauty +9% Perishables Beverages Ambient Food Home Care plaguing +10% +10% +15% +15% several key departments Alcohol Pet Food
Slide 15: The impact of lower inflation: less value growth, declining volume
The impact of lower inflation: Less value growth compounded by declining volume US: Total FMCG Average Unit Price % Change US: Total FMCG Dollar Growth 11.9 11.0 10.7 10.2 December 2023 8.4 Volume declines still a concern 8.8 7.6 +2.0% 6.2 6.1 3.1 5.2 2.1 2.2 4.4 3.7 0.0 3.1 2.4 2019 2020 2021 2022
Slide 16: Wallet shifts favor spending more on life essentials
Wallet shifts favor spending more on life essentials Survival instincts reign supreme, but in some cases, fewer consumers intend to cut back on discretionary categories than in 2023 (e.g., Clothing / Apparel) Spending less Same as before Spending more 2023 2024 2023 2024 2024 2023 56% 52% 50% 44% OO
Slide 17: FMCG retains essential positioning among consumers
FMCG retains essential positioning among consumers Particularly fresh foods and wellness products Spending intentions for next 12 months net change in spending (pt. change) Utilities 20.6 Fresh Produce 24.4 Groceries and household items 19.1 Health & wellness 13.9 Health care visits 15.8 Education /
Slide 18: Winning with today's pressured consumers
Winning with today’s Spoiler alert: pressured It’s not just about price consumers © 2024 Nielsen Consumer LLC. All Rights Reserved.
Slide 19: Expect a year of redefined consumer values
Pressured 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 eat more from prefer the ability proactive with hard to balance always compare
Slide 20: Maintaining consumer and shopper loyalty
Saving motivators for Consumers around the world Seek lower prices 89% Maintaining consumer and Switch products/brand 74% shopper loyalty will be a Reduce overall spending 72% challenge in Switch stores 65% 2024 Switch size 49% Prioritize needs 43% Source: NIQ Consumer Outlook 2024, Global © 2024 Ni
Slide 21: Consumers prefer value for money if prices continue to go up
Listening to the voice of consumers can guide companies on how to most effectively ‘take price’ Consumers signal that they would prefer companies offer value for money if prices continue to go up If prices continue to increase/remain high in the next 3 months… What actions would you prefer your bran
Slide 22: Adapting to Price Tier Shifts
Global Price tier mix Change vs YA Value sales mix – Latest year ended Value share chg. in p.p. – Latest year ended Adapting to Oct’23 – Total FMCG Oct’23 – Total FMCG Global Index to average price Price Tier Shifts $$$ 18% >130 -0.3 - As a response to the global recessionary environment, the Premiu
Slide 23: Growing around 'The Big Squeeze'
Growing around ‘The Big Squeeze’ With pressures felt from multiple angles, consumers are pivoting around emerging challenges to get by. These maneuvers create green shoots of opportunity that companies can harness to weather the storms ahead. Although there is an expectation the challenging consumer
Slide 24: Private Label continues to deliver on value
Despite some deceleration in growth, Private Label products continue to deliver on consumers’ search for better value Private Label Performance Value sales % growth vs. year-ago by region Africa Middle East 46.0% Latin America 24.7% East Europe 19.6% Asia Pacific 16.7% Europe 13.6% +12.7% Global Pri
Slide 25: Continuous innovation can help companies break through
Continuous innovation can help companies to breakthrough Supporting bottom line and boosting overall growth during times of volumetric slowdown Impact of innovation on overall growth* Manufacturers growing 4.2 innovation sales in 2022 were 2.9 1.8 1.8 1.6 1.8x more likely to grow overall sales than
Slide 26: NIQ Better For trends
Inflation impacted Better For trends in the past year, but growth NIQ Better For … expected in 2024 as sales trend is shifting back YOU $ % Chg YA | Food & Beverage vs Better For ENVIRONMENT Inflation drove short-term shifts from wellness SOCIETY Source: NIQ, Retail Measurement Services – NIQ Produc
Slide 27: Glimmers of hope for global consumer tech & durables in 2024
Glimmers of hope anticipated for global consumer tech & durables market in 2024 Global T&D market results – 2023 vs. previous "After two years of decline, we expect the global T&D market to finally turn positive again in 2024, albeit at a small scale" Ines Haaga GfK’s insights expert for Consumer Te
Slide 28: E-commerce remains a huge global growth opportunity in 2024
Despite deceleration in Asia, e-commerce remains a huge global growth opportunity in 2024 Online sales performance Top/Bottom performing e-commerce markets % value growth vs YA % value growth vs YA UAE 34.1% Global 9.0% Romania 29.4% Europe 12.4% Saudi Arabia 28.8% -6.5% Sweden Asia Pacific & China
Slide 29: Enhanced collaboration is critical to long-term profitable growth
Enhanced collaboration is critical to long-term profitable growth Collaboration improves decision making in many areas A recent NIQ/Coresight study shows: Ability to meet the 9% 7% 9% 7% 8% needs of shoppers • The ability to meet needs of shoppers is a Higher efficiencies in operations 9% 7% 6% 7% 9
Slide 30: Emerging disruptor: Our new tech reality
Emerging disruptor: Our new tech reality Generative AI will transform ways of working and living in society, and new tools and advances could raise global GDP by 7% Source: Goldman Sachs Research, 2023 © 2024 Nielsen Consumer LLC. All Rights Reserved. © 2024 Nielsen Consumer LLC. All Rights Reserved
Slide 31: Bringing it all together…
Bringing it all together… There’s one universal truth to success in today’s market: Data needs to lead the way Get ahead of the emerging value & volume slowdown -1% Global volume growth in 2023 vs. +9% sales growth NIQ Revenue Management Expand assortment to capture new tiers of affordability Value
Slide 32: Bringing it all together…
Bringing it all together… There’s one universal truth to success in today’s market: Data needs to lead the way Navigate the fluid channel dynamics of omnishoppers of global consumers say they NIQ Omnichannel and Market 11% have shopped via social media channels before Performance Measurement Support
Slide 33: Key findings: Growing in a declining market
Key findings: Growing in a declining market Promote with purpose Balancing sustainability and profitability is crucial in a slowing market. Focusing on short-term volume can harm Don't sacrifice tomorrow by giving away today long-term profitability. Value retailers are rising due to demand for affor
Slide 34: Key Findings: Growing in a declining market
Key Findings: Growing in a declining market Reach consumers where they are Consumers move fluidly across channels to fulfil their needs, meaning growth will come from a balance of both It's the wrong time to miss the right place online and in-store strategies. Make shopper-centric decisions Growth i
Slide 35: We deliver the Full View
We deliver the Full View, the world’s most complete and clear understanding of consumer buying behavior that reveals new pathways to growth. © 2024 Nielsen Consumer LLC. All Rights Reserved. 35
NIQ Global Intelligence — Investor Presentation (January 2024) on 6ix