Sales of Procter & Gamble Co. rose in the most recent quarter, driven in part by demand for high-end household products, from expensive dish soap to a $ 300 electric toothbrush.
Despite a tough economic outlook and a high level of unemployment, maker of Gillette shavers and diapers Pampers said consumers are increasingly willing to pay more for products.
The dynamic is developing throughout the consumer products industry as richer consumers have a better recession in this recession than those with lower incomes and cleanliness and hygiene who have a higher priority in all segments of society during the coronavirus pandemic.
“Consumers are targeting products where they can say,‘ I know this will work for me and my family, ’” said Jon Moeller, P&G’s chief operating officer.
Consumer spending on food and household products considered premium or super premium increased more than spending on conventional, value-oriented and private-label products, according to data from market research firm IRI, which examine online shopping and groceries for the 12- weekly period ended October 4, compared to the previous year. According to the study, premium soap, household cleaners and paper towels recorded the highest growth.