Procter & Gamble focuses on premium launches to grow in the U.S. despite economic uncertainty
Company targets US$ 5 billion growth in the U.S. market with high-value product launches, despite slowdown in consumer spending
Procter & Gamble (P&G) is turning to premium versions of its products, including a US$ 380 electric toothbrush, enhanced Pampers diapers, and pocket-sized Always pads, as part of its strategy to offset costs tied to recent tariff policies introduced during the Trump administration.
Since shifting production out of China isn’t a simple option, the company is relying on price increases, especially for new or improved items, to deal with these pressures, according to Chief Financial Officer Andre Schulten.
Recent launches include Venus razors designed to hang in the shower, a US$ 12 whitening toothpaste, and Tide pods with a deeper cleaning formula.
This pricing and innovation strategy has been used before during the pandemic and the post-COVID inflation spike and helped the company maintain stability during challenging periods.
The new product lineup suggests that while U.S. consumers may cut back on discretionary items like entertainment or clothing, there’s still room for spending on upgraded household and personal care products.
Even so, the environment remains uncertain. Schulten noted that consumers are becoming more cautious, pointing to changes in mortgage rates, employment concerns, retirement savings, and what he described as “all the divisiveness and nationalistic rhetoric”.
“I don’t know if it will work well enough”, said Michael Ashley Schulman, chief investment officer at Running Point Capital, which holds P&G shares. “They need enough of the high-end consumers to buy the higher-end prices”.
According to Schulten, U.S. consumption slowed from 3% over the past year to 1% in February and March. Still, the company sees potential for US$ 5 billion in growth in the domestic market by reaching more consumers.
Among the standout products are the Oral-B iO Series 10 electric toothbrush and the more affordable iO Series 2 model, priced at US$ 60, which have helped increase market share.
Schulten also mentioned that new items are coming soon under brands such as Febreze, Dawn dish soap, Mr. Clean, Swiffer, and Cascade.
