The goal is to look at large CPG companies to see how they are preparing for a future recession, as well as how certain CPG items such as feminin products and baby items fare during a recession.
- 74% of US business economists believe the US will be in a recession by the end of 2021.
- CPG consumers are still showing price-conscious behaviors today that developed in the last recession.
- In terms of growth after the last recession, private retail brands have shown the most growth, with an 18.5% growth in 2018.
- Proctor and Gamble does not believe we are headed into a recession and reports that their feminine hygiene products have experienced "high single-digit growth". Another source says this growth was 7% in the last quarter of 2019.
- Kimberly Clark believes their well-known brands will be insulated from another recession.
- Kimberly Clark only experienced a 30% decrease in shares after the Great Recession and says that their stock value kept pace with the market ever since.
- The latest rounds of tariffs are expected to impact manufacturers of baby products.
- The market for beauty products grew during the Great Recession and it is currently projected to grow by 3% through 2020.
- Nail product sales actually soared 12% during the Great Recession.
- Some experts believe the "lipstick effect" will help beauty products remain stable during a recession because people have less money to spend on expensive items like homes and cars, so they tend to spend more on small expenses such as beauty items.
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