Impact of COVID-19 on price sensitivity in the consumer goods industry in Europe and the United States

on 21/04/2020

Unsure of whether or not you should conduct pricing research now? In April 2020, we re-ran pricing research to compare consumer choices in the U.S. and Europe pre- vs. during COVID-19. Eight studies included 87 CPG / FMCG brands - from dairy to homecare products. Download the results to learn: - How/have price elasticities changed pre- and during COVID-19? - Are consumers deciding differently now? - How does price sensitivity vary across categories and countries? - Implications for brands considering pricing research now

Why was the research conducted?

To determine if and how the COVID-19 crisis impacted price elasticities for CPG brands in the U.S. and Europe.

How was the research conducted?

This pricing research was conducted during the first three weeks of April 2020 using SKIM’s Virtual Shelf research solution. A choice-based-conjoint research methodology was used for the analysis.

What are the key findings of the research?

32% decline in sensitivity for brands dominant in larger packages. Overall, consumer price sensitivity remains consistent across categories (pre-COVID-19 vs. April 2020). Consumers are less sensitive to price changes in large packs and more sensitive to price changes in smaller ones.

99% correlation between the base cases: Shoppers tend to remain loyal to favored brands. “Of course, this brand loyalty during the crisis assumes that products are available on the shelf,” explained Krasimira Mladenova, Director, North America, who led the U.S. pricing re-run.

13% relative growth of larger packages: There is a consistent shift to larger pack sizes across categories. “We found the shift to larger packs to be even more prominent in Europe, especially in the dairy category,” said Stefan Ammerlaan, Senior Director, EMEA, who led the European research.

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Contributor's Name: Robin de Rooij