Premiumization Amid Inflation

Over the past few years, buy rate has been growing across a broad range of categories, with an average department growth of 21% between 2019 and 2022. While many factors are driving this trend— including inflation and supply chain issues— some consumers are spending more in certain categories simply because they are looking for a premium product.

Numerator consultants Shelly Baggott and Jeremy Marcus examine premiumization in an inflationary environment. Using the Dog Food, Hair Appliances, and Spirits categories as examples, they dissect the motivations of consumers who are trading up even as prices remain elevated, and demonstrate how to recognize the behaviors that indicate premiumization is happening within your own category.