1、Circana,LLC|Proprietary and confidentialExploring the Rise of the Joy Economy THE GREAT ESCAPE:Circana,LLC|Proprietary and confidential2According to the World Health Organization,over 1 billion people are suffering from some form of mental health disorder.Consumer escapism trends have been on the ri

2、se in recent years.People are exhausted by the boring and ordinary.Theyre worried about war,economic challenges,climate change,and security.And they seek ways to temporarily escape the stresses of daily life by creating joy in their personal environment.Escapism takes many forms,from reading books a

3、nd watching movies to engaging in hobbies and traveling.These activities can help people relax,recharge,and find enjoyment,and theyre fueling todays joy economy.At Circana,we provide clear visibility into complex shopper behaviors,covering$4 trillion in global shopper spending across 26 industries.W

4、e change retailer perspectives to accelerate decision-making and lift sales by showing them a complete picture of whole categories,cross-category influences,buyer behavior,and more.Here are three ways shoppers are embracing escapism and growing the joy economy:01 Nostalgia|02 Inspiration and Aspirat

5、ion|03 Self-careCircana,LLC|Proprietary and confidentialNostalgiaCircana,LLC|Proprietary and confidential4Companies succeed by associating their products with idealized memories and past experiences.Many of us recall a magical time before photography went digital,when each picture was unique and the

6、re was excitement in seeing how pictures turned out.In Canada,our Retail Tracking Service data shows instant print cameras were up 9%for the 12 months ending April 2024,connected to shoppers seeking out the vintage,classic charm of instant photos.Nostalgia is about seeking comfort in tried-and-true

7、brands,products,and experiences that remind shoppers of simpler times.In 2023,licensed products grew dollar sales across toys,video games,and backpacks,outperforming the remaining market in their industries.The top U.S.growth licenses were heavily steeped in childhood classicsLicensed Products:Remai

8、ning Market:Top Growth License:+38%-17%Spider-ManLicensed Products:Remaining Market:Top Growth License:-4%-9%Teenage Mutant Ninja TurtlesToys:Licensed Products:Remaining Market:Top Growth License:+14%-8%Teenage Mutant Ninja TurtlesBackpacks:Source:Circana,Retail Tracking Service,U.S.,accessories,toy

9、s,video games(physical only),12ME December 2023 Video Games(physical only):Circana,LLC|Proprietary and confidential5Juli Lennett,Vice President,Toy Industry Advisor,Circana“2023 was a great year for popular licenses driven by a strong movie release calendar.Due to last years Hollywood strikes,2024 i

10、s looking to have fewer new releases which will impact this market.With a lack of newness in this regard,nostalgic properties are expected to be big this year.Investment in core nostalgic brands and licenses can help fuel sales in 2024.”Circana,LLC|Proprietary and confidential6Sally Lyons Wyatt,Glob

11、al EVP and Chief Advisor for Consumer Goods and Foodservice,Circana“When it comes to beverages,you can literally sip nostalgia with classic flavors and brands,such as SunnyD.The tangy orange drink surged in the 1990s and has reinvented itself as a vodka seltzer,while capitalizing on the iconic brand

12、.And a relatively new beverage on the market,Poppis probiotic soda,is putting a fresh,new spin on a classic drink.Poppis appeals to younger consumers who want a more natural,low-sugar option,and older consumers who grew up on soda but are looking for a better-for-you option.”Shoppers are increasingl

13、y switching brands and retailers as prices rise.Retailers must firmly focus on connecting and converting shoppers.Its time to turn up the emotional volume on classics.Think less about reinvention and education,and more about returning to essential memories that resonate with childhood.What products

14、and brands in your store fit this trend?More than ever,you need to know how people feel and how theyll shop in the moment.Circana,LLC|Proprietary and confidentialInspiration and AspirationCircana,LLC|Proprietary and confidential8It can take many forms,including the search for new travel and adventur

15、e ideas and hobbies and creative pursuits that allow people to express themselves and explore new interests.How can you build and deliver the right customer experience every time on every platform?Over two-thirds of European consumers surveyed in Circanas Volume Vortex study of 3,000 consumers said

16、they are increasingly looking for products that are versatile and adapt to their evolving lifestyle choices.Consumers prioritized a sense of community by investing in hobbies.In the U.S.,our Retail Tracking Service data shows racquet sports equipment dollars increased 26%year over year as pickleball

17、 gained popularity and excitement grew around professional tennis.Inspiration and aspiration are about engaging with content,influencers,and activities that elevate moods and help shoppers achieve their goals.Source:Circana,Retail Tracking Service,U.S.,12ME December 2023Circana,LLC|Proprietary and c

18、onfidential9Larissa Jensen,Senior Vice President,Global Beauty Industry Advisor,Circana“Globally,luxury fragrance brands have been growing at a faster rate than the fragrance category overall,but we have also observed a shift to more value-focused fragrance options in the U.S.Gift sets,minis,and bod

19、y sprays are posting strong performance numbers,as consumers look for a way to indulge in a prestige scent at a fraction of the cost.”Western-style fashion boot units have increased week over week and year over year since Beyonc first hinted at releasing country music.Our Retail Tracking Service dat

20、a shows that in the four weeks ending March 2,2024,western-style boot units(+22%)outpaced total fashion boots(+4%)as U.S.shoppers were inspired to adopt similar country fashion staples.How can retailers and brands apply creative ideas at scale to leverage the inspiration and aspiration trend?Source:

21、Circana,Retail Tracking Service,U.S.,Footwear,Fashion Boots(Western Style),YTD WE March 2,2024Aspirational shopping is about a desired feeling and doesnt necessarily mean spending outside of a budget.Little luxuries can often achieve the same outcome.Circana,LLC|Proprietary and confidentialSelf-care

22、Circana,LLC|Proprietary and confidential11While the definition of self-care has expanded and deepened since the pandemics heights,it largely encompasses mental and social health,weight management,lifestyle and habits,and energy.Shoppers want items that give them peace and relaxation,reduce anxiety,a

23、nd help improve their and their loved ones health.When it comes to self-care,U.S.consumers are most interested in improving their physical and mental well-being.Given inflationary concerns,many choose vitamins and supplements over celebrations and vacations*.In fact,vitamins and supplements have gro

24、wn year over year since 2019.Vitamin dollar sales grew 4%in 2023 compared to 2022,while supplements grew 6%.Shoppers have shifted from reactive to proactive when it comes to self-care activities.Source:Circana,Total Market View MULO+with Conv&Perimeter,Annual 2023(F&B/nonedible CPG-excluding tobacco

25、)week ends on a Sunday*Source:Circana Survey Solutions,Self-Care 2023*Source:Circana,CREST,Canada-$2B$3B$8B$13B$18B20192020202120222023Vitamins and Supplements DollarsVitaminsSupplements+4%+6%The self-care trend has been translating into Canadian foodservice as consumers are increasingly conscious o

26、f their macronutrients.“High-protein menu items”had the fastest growth by far as one of the most important food preferences when choosing a restaurant over the past four years*.Younger demographics have been leaning more toward what to add protein rather what to avoid fat and sugar.This applies most

27、 to older cohorts.“In Europe,as revealed by Circanas Innovation Pacesetters study,the key product drivers of self-care that delivered better value and justified a premium were products that contained science based,natural ingredients that were able to deliver pro-level benefits at home.The definitio

28、n of self-care has widened to whole body mental and physical well-being and preventative therapies and products are crucial.”Ananda Roy,SVP Thought leadership and leading CPG advisor in Europe,CircanaCircana,LLC|Proprietary and confidential12Source:Circana,Total Market View MULO+with Conv&Perimeter,

29、Annual 2023In beauty,shoppers are prioritizing their skin.Our data shows dollar and unit sales of skincare products have grown continuously since 2020.Looking closer,26%of U.S.shoppers said they would be more focused on skincare in 2024 compared to 2023.*Q1 2024 already has 10%more dollars and 12%hi

30、gher units compared to the same time frame last year.Along with focusing on their own health and wellness,U.S.shoppers also spent more to improve their pets health last year.Pet aisle dollar sales increased 10%as shoppers prioritized their furry friends.Pet health&wellness was the fastest unit growt

31、h aisle,up 11%in dollars and 4%in units compared to the prior year.*Source:Circana,Omnibus Survey,December 2023Source:Circana,Retail Tracking Service,Prestige Beauty,Q1 2024 vs.Q1 20230M100M200M300M400M$0B$2B$4B$6B$8B$10B20192020202120222023Skincare Dollars and Units by YearDollarsUnits0%5%10%15%20%

32、25%Pet vitaminsPet supplementsPet medicinePet Health&Wellness Aisle:Fastest$Category GrowthDollar GrowthUnit GrowthCircana,LLC|Proprietary and confidential13For retailers,self-care represents a significant growth opportunity to meet shoppers needs and expectations.Some considerations:Integrate shopp

33、er needs with in-store messaging and prior to purchase.Seek personalized,segment-based innovation to offer newness to shoppers.Consider a bifurcation strategy offering products that meet value and premium shoppers.Collaborate with manufacturers to leverage their self-care portfolio and mesh with sho

34、pper needs.The Joy Economy at RetailWeve reached a new age in customer experience.To be successful and stay ahead,its critical to understand shifting shopper behaviors.Escapism trends reflect the emotional needs and preferences of todays shoppers.In fact,61%of shoppers want brands to help them escap

35、e by providing intense emotions with their marketing and products*.Retailers can use these trends to participate in the joy economy and provide affordable fun.Each has implications for innovation and assortment,brand partnerships,marketing messaging and campaigns,and social media engagement.Ultimate

36、ly,retailers can use shopper escapism to deliver relevant and engaging offerings that fuel sales and loyalty.01020304*Source:Wunderman Thompson,The Age of Re-EnchantmentCircana,LLC|Proprietary and confidential14Marshal Cohen,Chief Retail Advisor,Circana“Retail dynamics have changed dramatically.Reta

37、il can no longer depend on consumers following brands lead.Success now depends on understanding the speed of change happening across consumer shopping influences and desires driving purchases.Consumers want what they want,and they are influenced by so much outside of retail in short windows of time.

38、Therein lies the big challenge and the big opportunity for retailers.If retail can keep pace with consumers,providing stand-out products that emphasize what they value,in the moment,it will be the first step in establishing relationships with shoppers that can span multiple buying channels and support future growth.”Circana,LLC|Proprietary and confidential15Learn MoreTo continue the conversation about the joy economy and retail,contact your Circana account representative or email .