NIQ: Women will account for 75% of discretionary spending in the next five years

Women control about $31.8 trillion of worldwide spending, per a new report from NielsenIQ, and that power will continue to increase over the next five years, when the demographic is expected to control 75% of discretionary spending. But to win their $$, brands and retailers must adapt to meet their needs and values.

Brands and retailers should keep an eye on women’s purchasing data and interactions across online, in-store, and social platforms to better understand and engage them, the consumer intelligence company said. Equality, sustainability, and authenticity are the three major values driving women’s purchases, while quality, emotional connection, and social responsibility also steer their decision-making.

The $100+ billion health and beauty industry, which NIQ notes is particularly inclusive and accessible, exemplifies many of these values and drivers. Still, there are “glaring” gaps in the marketplace even within this category, particularly in serving menopausal women. NIQ found that 85% of women use lifestyle adjustments, rather than specific products, to manage menopause symptoms. It also found that products that are helpful for menopause aren’t marketed as such, and “indirect menopause symptom claims are 160 times more discoverable than direct claims.” Identifying opportunities like this to highlight product attributes can help brands and retailers drive growth and "have a meaningful impact on...millions of women," the report said.

Opportunities also lie in introducing new CPG segments to reach women. Reusable period products, for instance, boosted buyers in the feminine personal hygiene sector by 29%, surpassing the 7% growth rate of the total period care market, NIQ said. Within the $170 million category, NIQ classifies 75% of products as “growers,” indicating women’s interest in products directly catering to their needs and values.

Zoom out: Beyond innovation and marketing, it’s also essential to recognize barriers to entry, particularly gender-based pricing differences such as the “pink tax,” and the additional cost of feminine hygiene products that women must shoulder (the average unit price for these products is $5.39, higher than the average $4.67 price of deodorant, “more than doubling the basket size of women compared to men for daily essentials,” per NIQ).

We’ll leave you with one last stat: 91% of women believe brands don’t understand them, according to NIQ, so “prioritizing the challenges and opportunities of women consumers” could ultimately lead to “tremendous growth.”