Industry Reports

Q1 2019
In 2018, consumers nationwide continued to shift preferences toward products and activities that promote healthy and active lifestyles. A significant result of these shifts was the permeation of natural, organic, and better-for-you (BFY) products into the diets of US households. Numerous US states indicated that approximately 90% of households bought organic food & beverage products regularly, with the lowest level of organic consuming households falling to approximately 70% in certain states, according to the most recent Organic Trade Association survey.
Q1 2019
The Personal Care Products & Service industry has seen significant shifts in consumer preferences, in tandem with the entire Consumer Products market. Companies that have leveraged these shifts by providing consumers with personalized experiences and natural & organic options have not only driven strong sales but have also attracted strategic and private equity interest in the merger & acquisition (M&A) market.
Q1 2019
The E-commerce & Internet Retailing market has experienced heightened traffic, increasing 14.5% year-over-year through Q3 2018, according to the US Census Bureau. The positive correlation between rising real disposable income and e-commerce sales has fostered significant growth and expansionary opportunities in the industry. Healthy consumer confidence and wage growth throughout the year, most recently indicating a 3.2% wage increase in the December US jobs report, have resulted in personal consumption expenditure growth of 2.8% YOY in November (US Census Bureau).
Q1 2019
The Juvenile Products industry experienced strong revenue growth in 2018, driven by the 7.5% year-over-year increase in real disposable income (US Census Bureau), which fueled robust consumer confidence and spending last year. Additionally, personal consumption expenditures increased 2.8% YOY in November, propelling strong holiday season sales figures. The US Bureau of Labor Statistics’ robust December jobs report indicated unabated economic momentum heading into 2019.
Q1 2019
Activity in the Recreational Products industry has been primarily driven by robust macroeconomic fundamentals and a growing desire among consumers to lead healthy, active lifestyles.
Q4 2018
American consumers are filling more of their grocery carts with organic options, buying everything from organic produce and ice cream to organic fresh juices and dried beans. Last year, over 82.0% of US households bought organic and during that time, Americans spent nearly $50.0 billion on organic products, according to the Organic Trade Association’s 2018 Organic Industry Survey.
Q4 2018
US Pet industry expenditures are expected to reach $72.1 billion dollars in 2018, equating to a 3.8% increase year-over-year, according to the American Pet Products Association. Public companies in the Pet & Animal Care industry showed robust Q3 earnings with Freshpet, IDEXX Laboratories, and Central Garden & Pet posting pet product revenue growth of 27.0%, 11.0%, and 5.0%, respectively. Strong public company performance has been primarily driven by revenue growth, growth in scale through acquisitions, and premiumization in the industry.
Q4 2018
Due to disruptions in the Retail market, leading brick-and-mortar retailers have felt pressure to revive business models to encompass omnichannel sales solutions. The prioritization to expand into e-commerce markets, enhance customer experiences, and improve supply chain efficiencies has driven consolidation among e-commerce companies. Acquisitions of well-established brands with proven e-commerce traffic have allowed traditional brick-and-mortar retailers to evolve and capture shifting consumer preferences.
Q4 2018
The Recreational Products industry has been supported by historical levels of disposable income and significant shifts in consumer preferences towards products and activities that promote healthy lifestyles. According to the Outdoor Industry Association’s “2018 Outdoor Participation Report,” 49.0% of the US population in 2017 participated in outdoor recreational activities, a slight increase from 2016.
Q4 2018
With 91 deals announced or completed in the Personal Care Products & Services industry year-to-date 2018, merger and acquisitions activity is poised to exceed or match that of 2017. This year, historic levels of consumer confidence and per capita disposable income have strengthened demand for personal care products & services. Capstone Headwaters’ Personal Care Products & Services public company index indicates average revenue growth of 9.8% for the last twelve months ending in September.

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