KHC - Demand For Packaged Food Drops In US: Has 'Miracle' Drug Ozempic Got Something To Do With It? | Benzinga
As the cost of living in the U.S. keeps soaring, Americans seem to be shunning comfort food, despite the necessity to eat. Notably, packaged-food manufacturers are witnessing a significant drop in their product sales. This shift in consumer behavior is sparking curiosity and concern among industry watchers.
According to a report from Barron’s, TD Cowen analyst Robert Moskow detailed three primary factors behind the declining sales volumes of packaged-food makers. Moskow warned that this downturn could persist in 2024 unless firms take substantial measures to reduce prices.
First up, the high prices of food products have led consumers to economize their shopping habits. Moskow noted that consumers are “wasting less, resisting impulse purchases, and trading down to cheaper options.”
This trend is seemingly backed by the 1.8% drop in grocery store volumes over the past 52 weeks.
Big packaged-food companies, including Conagra Brands (NYSE: