As we step into 2024, the food & beverage industry continues to assert its dominance in consumer spending, as it did throughout 2023. By retailer, market share of the food & beverage category seems stable with Walmart as the largest player and Costco second.
Zooming in on Costco, several noteworthy trends have surfaced in the past few months. Among the tertiary categories experiencing the highest year-over-year (Y/Y) growth are Nuts & Seeds and Soda. These segments have captured consumer interest and demonstrated robust performance.
Conversely, some categories within Costco have witnessed weaker Y/Y growth. Milk, Juice, Grains, Rice & Cereal stand out as areas facing challenges in comparison to their counterparts. Understanding these nuances is crucial for businesses and investors searching for the right opportunities within the food & beverage landscape and avoiding the wrong ones.
For private equity investors eyeing the food & beverage sector, Costco is often a blind spot when it comes to origination, diligence, and portfolio value creation. YipitData’s SKU-level data across retailers, including Costco, fills that gap.
If you’d like to see a bit more, contact us and we can show you the trends for your retailers, brands, and categories of interest.
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