Deloitte just released its 2023 consumer outlook, and the report kicks off with a great question:
Was this a good year or bad year for the industry?
In many ways, it’s been both, depending on how you’re holding the glass, and your definition of full. Inflation has meant high prices, but it’s also meant consumers trading down to private label and a loss of brand loyalty.
According to Deloitte’s outlook data: Consumer products executives surveyed also feel conflicted about the year ahead. On the one hand, they are negative about the macro environment, with eight of 10 respondents saying they are neutral or leaning pessimistic about the global economy and geopolitical stability.
But when it comes to their own companies? Three in four are optimistic about their company’s performance (74%) and its strategy (80%).
Some of the biggest challenges of the past year include labor, supply chain, and inflation, and Deloitte’s report touches on all three. Some 62% of respondents expect that supply chain issues will still be a big challenge in 2023, and last year set the record for higher CPG prices. Where does that leave us for the year ahead? Will consumers continue to pay higher prices?
Supermarket News spoke with Nick Handrinos, vice chairman and leader of Deloitte LLP’s retail and consumer products, about what both retail executives (and consumers) expect to see in the year ahead.
Take a listen.