Our latest research shows that meeting the needs of four key stakeholder groups—consumers, customers, employees, and the planet—doesn’t distract top CPGs from the vital task of creating economic value for investors. Consumers—asked to pay more without getting any extra benefits in return—are switching to more affordable private-label brands or to more premium insurgent brands that offer greater consumer value. Slightly more than half the executives we polled (54%) said they’d been significantly affected by consumers reining in spending in 2023. Almost all CPGs need to get more serious about the capability builds needed to lead on share steal, market expansion, and premiumization—and to achieve fundamentally higher productivity levels. In a different vein, several CPGs are building “eB2B” wholesale digital platforms, such as AB InBev’s BEES, a multicategory platform for both on- and off-trade.

Thrive Market (USA)

Out of 21 major food commodities analyzed, 85 percent are expected to face moderate or substantial increases in drought exposure, which is likely to lead to lower crop yields and more frequent crop failures. Several crops are in an acute position, in which they face both substantially increasing drought risk and highly concentrated footprints, including almonds, olives, hops, and cocoa. These changes in climate Legal E-Billing are expected to increase volatility in supply and price, necessitating shifts in where crops are grown and the need for further climate-resilient growing practices. Digital now represents 75 percent of all advertising spend, from nothing just 20 years ago. In 2002, Interbrand’s global ranking of brands included eight CPG brands in the top 50.

• Online advertisements keep brands top of mind while social content and influencer partnerships build emotional connections.
• During periodic controversies like food recalls or misleading claims, sincere brand outreach prevents isolated incidents from permanently sinking reputation.
• E-commerce generates vast amounts of consumer data, which, when effectively utilized, can provide insights into pricing, product availability, and customer preferences.
• Some other well-known brands in women’s health and baby care are Prenatal vitamins, pain relief medications, Johnson & Johnson’s baby lotions, baby wipes, and diaper creams.
• Johnson & Johnson’s net revenue as of December 2023 was $85.159 billion, a 2% decline year-on-year from its revenue in 2022.
• This has led to the push for CPG companies to create seamless omnichannel shopping experiences.
• Frito-Lay chips, Lay’s potato chips, and Doritos are a staple in almost every household when it comes to salty snacks.

Innovate for premiumization and category expansion

And consumer expectations to shop however they please will continue the demand for DTC shopping and subscription model pricing. The DTC model brings a range of benefits, including cutting down on supply chain costs, more direct access to consumer data, and larger profit margin potential. With DTC strategies earning increasing profits in the CPG sector, this trend is one https://www.bookstime.com/consumer-packaged-goods to watch in 2025. In 2025 and beyond, sustainability is set to become the CPG sector’s newest mainstay. Other influential consumer-driven trends include the shift toward ecommerce over traditional retail channels and the rise in home delivery. “From net zero to waste elimination, tomorrow’s leaders will be proactive in achieving an array of sustainability objectives, rather than waiting for others to find a solution.

• It’s hardly a secret that GenZ is notoriously fickle when it comes to doling out their loyalty.
• Meanwhile, digital connectivity allows streamlined supply chains and unified brand messaging globally.
• As a CPG company, they have prominent products in baby care, skin care, pain relief, oral care, and women’s health and are an important player in the consumer health market.
• Consumers increasingly demand ethical accountability alongside cute clothes from CPG brands.
• One survey revealed that more than a third of pet owners plan to increase their spending on pet food in the next six months.

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It also improves supply chain efficiency, enabling real-time tracking and data collection. These innovations build transparency, trust, and loyalty while offering a modern, interactive consumer experience. These innovations play a vital role in categories like packaging design for kids, where freshness and safety are key concerns for parents. By incorporating high-performance materials into their designs, brands can deliver packaging that is durable, sustainable, and tailored to consumer needs.

E-commerce demands faster delivery times and greater channel diversity, pressuring traditional supply chains. Streamlined logistics and localized fulfillment strategies are critical for meeting consumer expectations and maintaining satisfaction. Companies Accounting Periods and Methods need to adapt to this new environment with an approach to targeting, messaging, media buying, promotion, and in-store activation that is coordinated across marketing, sales, media, and analytics teams.