Catalina's Shopping Basket Index Reveals a 3% Aggregate Price Increase, Impacting Value-Conscious Shoppers

Thursday, April 25, 2024 Edit this post

By Catalina Marketing


In the first quarter of 2024, the Catalina Shopping Basket Index uncovered a 3% aggregate price increase across ten common grocery categories in the United States. While this indicates a positive shift from the previous year, certain consumer groups, particularly value-conscious families and on-the-go shoppers, experienced a more pronounced impact from inflation.

Wesley Bean, US Chief Revenue Officer at Catalina, highlighted the disparities in how inflation affects different demographics. He emphasized that while the overall inflation rate has moderated, certain segments of shoppers continue to face significant price hikes on essential items.

Comparing the first quarters of 2024 and 2023, Catalina's data showed a decline in inflation rates across all categories. Notably, categories like yogurt saw a substantial drop of 18%, while others, such as deodorants, experienced a more modest decrease of 6%.

Q1 2024 vs. Q1 2023 US Inflation Rate by Category

Chart Attribute:  Catalina Shopper Intelligence Average Price Change Q1 2024 vs Q1 2023, Q1 2023 vs Q1 2022

Delving deeper into individual products within these categories provides insights into the persistent challenges faced by shoppers. Families with children and those with busy lifestyles are among the groups most impacted by price fluctuations.

The report also shed light on the premium attached to convenience. While the overall cereal category witnessed a lower inflation rate compared to the previous year, prices for cereal bars surged by 13%. Similarly, while coffee prices decreased slightly, ready-to-drink single-serve coffee drinks saw a 3% price increase, highlighting the premium consumers pay for convenience.

Convenience Categories
Source: Catalina Shopper Intelligence Platform Average Price Change Q1 2024 vs Q1 2023

Surprisingly, value brand prices in some categories are rising faster than their premium counterparts. Products like bath tissue, detergent, and pizza under the value brand category witnessed price hikes, while premium brands either saw slight decreases or remained stable.

Value vs. Premium Brands
Chart Attribute: Catalina Shopper Intelligence Platform Average Price Change Q1 2024 vs Q1 2023

For families with children, popular items like baby laundry detergent, kids' frozen dinners, and baby wipes remained significantly above the average inflation rate for the first quarter of 2024. Notably, while private brand baby laundry detergent saw a decrease in price, private brand baby wipes experienced an 11% price hike.

Bean emphasized the importance for retailers and brands to adapt their marketing strategies to cater to evolving consumer behaviors amidst fluctuating inflation rates. He highlighted Catalina's comprehensive shopper data, which enables precise targeting and real-time campaign optimization to enhance shopper engagement and track sales impact effectively.

Catalina, renowned for its shopper intelligence solutions, utilizes real-time data and AI-optimized analytics to personalize the shopper journey across various channels. With operations spanning the United States, Costa Rica, Europe, and India, Catalina remains committed to safeguarding data privacy and consumer trust while delivering significant value to retailers, CPG brands, and agencies.

For more information, visit Catalina's website

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IndraStra Global: Catalina's Shopping Basket Index Reveals a 3% Aggregate Price Increase, Impacting Value-Conscious Shoppers
Catalina's Shopping Basket Index Reveals a 3% Aggregate Price Increase, Impacting Value-Conscious Shoppers
By Catalina Marketing
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