The sale of Procter & Gamble Co. in the past quarter, driven in part by demand for high-end household products, from expensive dish soap to a $ 300 electric toothbrush.
Despite a tough economic picture and high unemployment, the maker of Gillette razors and Pampers diapers said consumers are increasingly willing to pay more for products.
The dynamic is set in the consumer products industry as more affluent consumers are doing better in this recession than those with lower incomes and cleaning and hygiene are given a higher priority in all segments of society during the coronavirus pandemic.
“Consumers are driven towards products where they can say, ‘I know that will pay off for me and my family,’” said Jon Moeller, P&G Chief Operating Officer.
Consumer spending on food and household products considered premium or super premium increased more than spending on regular, value and private label products, according to data from market research firm IRI, which compared to online and grocery purchases for the 12-week period ended Oct. 4, with a year earlier. According to the study, premium soap, household cleaners and paper towels saw the most growth.