Procter & Gamble Co. sales surged in the most recent quarter, fueled in part by demand for high-end household products from pricey 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 playing out across the consumer-products industry, as more-affluent consumers fare better in this recession than those with lower income and cleaning and hygiene take on a higher priority across all segments of society during the coronavirus pandemic.
“Consumers are driven to products where they can say, ‘I know that will deliver for me and my family,’ ” P&> operating chief Jon Moeller said.
Consumer spending on food and household products considered either premium or super premium rose more than spending on mainstream, value-oriented and private-label products, according to data from market-research firm IRI, which looked at online and grocery purchases for the 12-week period ended Oct. 4, compared with a year earlier. Premium soap, household cleaners and paper towels saw the most growth, according to the study.