Numerator continues to track purchase data and survey verified buyers to understand shifts in consumer behavior. Examining premiumization in the midst of inflation has found that many store departments – not just food – have outpaced average spend growth compared to pre-pandemic. Shoppers have adopted new and sticky behaviors, and trading up to higher price brands is one of them.
Premiumization is recognized by key indicators such as increased buy rate driven by spend per trip; increased spend per trip as a result of spend per unit; and trips and units remaining steady. A widespread, overarching shopper rationale for buying premium brands is a desire for quality. Here’s what we learned:
Premium dog food
24% of premium dog food buyers said they bought premium products because they were looking for higher quality and wanted to ensure their pet was getting the best healthy and natural ingredients. 70% of new super premium buyers consider their purchase an upgrade
Premium dog food spend per unit is +31% vs 2019, while mainstream dog food spend per unit is only +12% for the same time period
23.5% of premium dog food buyers were new in 2022, and 55% were also new to dog food
65% of new premium dog food buyers said they frequently splurge on items for their dog, but 40% are uncomfortable with discretionary spending right now
Premium hair appliances
Small, premium brands in the hair appliances category have kept shopper momentum and enjoyed double-digit spend per unit in 2022 vs 2019 ($138 vs $92, respectively)
21% of premium hair appliance buyers trade up to avoid having to replace mainstream brands frequently, and 13% said their top reason for purchasing a premium hair appliance was because it was less damaging to their hair
70% of new premium hair appliances shoppers said they save money by doing their own hair rather than spending money at a salon
Premium spirits
27% of spirits shoppers who trade up to premium brands said premium brands taste better, and 23% said they buy it as a treat for themselves
Premium spirits buyers in 2022 were 65% existing premium buyers and 35% who were new to the spirits category. These new purchasers represented an additional 5.9 million households
4% of premium+ spirits shoppers said they do not drink very often, so when they do, they want it to be high quality, and 53% said they make more alcoholic drinks at home now than before the pandemic.
