premiumization
/ˌpriːmiəmaɪˈzeɪʃən/
Definition
The business strategy of shifting a product category toward higher-quality, more expensive, and value-added goods to increase profit margins and brand appeal.
Etymology
Derived from the adjective 'premium' (from Latin 'praemium', meaning reward or prize) combined with the suffix '-ization', which denotes the process of becoming or adopting a specific state. It entered business terminology in the late 20th century to describe the strategic elevation of standard consumer goods into luxury or high-status offerings.
In the news
In this article, the term refers to the trend of pet owners increasingly purchasing higher-cost, specialized, and health-focused pet foods. This trend is described as the foundation upon which the industry is now layering even more expensive medical and pharmaceutical services.
Fat cat? Weight-loss drugs may be coming for your overweight pet
Read the full article ↗CNBC