Lindsey Kiely and Bhakti Nagalla of the EY-Parthenon Consumer Industries and Private Equity practices join Winna Brown to explore the consumer product categories, behaviors and trends investors should keep an eye on.
Contact Lindsey:
[email protected]
Contact Bhakti:
[email protected]
The consumer products and retail sectors have certainly been ones to watch. The COVID-19 pandemic both accelerated existing trends and forced the industry to accommodate novel consumer need states and demand shifts.
Evaluating the sustainability of growth in these categories has become a key part of the diligence process as investors struggle to predict future consumer demand. In today’s competitive deal environment, investors are seeking proprietary deals or early LOI more aggressively and are also pivoting to industries that support consumer goods and services (i.e. contract manufacturing, logistics, technology).
Consumer behaviors have shifted as they spend more time researching products online, increasingly favor masstige price points and demand next-level experiences from brands and retailers both online and offline. These shifts are causing investors to more heavily scrutinize a brand’s online presence, pricing model and cost models.
Interesting categories for investors to watch include:
Consumer health Pet health Home products In-home entertainment and hobbies Online retail Supporting industries