Finding it challenging to stay updated on consumer packaged goods industry trends? In an industry where change is constant, driven by evolving consumer preferences, global economic shifts, and lasting impacts like the coronavirus pandemic, it’s easy to lose track of all the ongoing developments.
In this article, we’ll explore 10 top trends that have either emerged in the CPG sector or are expected to gain prominence soon. Our goal is to provide you with a clear forecast of where the CPG industry is headed.
10 CPG trends
Wondering which trend your CPG brand needs to keep track of? Dive into the top CPG industry trends and learn how they can positively impact your business.
1. Uptick in direct-to-consumer strategies
Have you ever wondered why CPG brands like Nestlé, Dollar Shave Club, and PepsiCo are jumping on the direct-to-consumer (DTC) bandwagon? Well, the numbers speak for themselves. The CPG industry is set to skyrocket to $161.22 billion by 2024, making it an irresistible opportunity.
So, what exactly is DTC? It’s a savvy strategy where brands sell directly to consumers, cutting out the middleman. This means full control over everything from production to delivery.
Yet, the real game-changer lies in the direct connection with customers. By cutting out intermediaries, brands can forge stronger relationships and gather valuable insights.
With access to more customer data, personalized marketing becomes not just a possibility, but a powerful tool for engagement. Plus, brands have the freedom to tailor their marketing efforts and loyalty programs to suit their unique vision.
Get some tips on how to get repeat CPG sales on our blog.
2. Growth of store-branded products
The rise of private labels, commonly known as store brands, has become staple essentials in consumers’ shopping carts. More and more people are choosing store brands over name brands, especially as prices go up.
In the US, shoppers are saving over $40 billion by buying store-brand groceries and household items.
People used to think store brands were just cheap knock-offs, but now they see them as good value for money. Consumers’ perceptions towards store brands have radically shifted.
This is tough for CPG brands, but they still have one thing on their side: trust. People trust big established brands more, especially if they’ve been around for a long time.
To remain competitive, CPG brands must adapt. Innovation is key, whether through pricing adjustments, greater inclusivity, or other strategies that align with evolving consumer preferences.
3. Rise in omnichannel adoption
Omnichannel marketing is another CPG market trend rising to the top in the CPG industry. The global pandemic accelerated this shift, pushing consumers who traditionally shopped in-store to explore online alternatives.
On top of that, the surge in e-commerce has reached unprecedented heights and continues to rise, fundamentally changing consumer buying habits. For CPG brands, adopting an omnichannel approach isn’t just about jumping on a bandwagon—it’s about adapting to where consumers are already making their purchases.
By leveraging multiple platforms, both online and offline, brands can engage with shoppers throughout their purchasing journey, from research to final purchase. This adaptability is a must in an ever-evolving retail landscape, ensuring brands remain relevant and accessible to consumers.
Learn how QR Codes can improve your omnichannel strategy.
4. More popularity in social commerce
Social commerce has changed the way consumers navigate their path to purchase, reshaping both the buying experience and brand-consumer interactions.
Platforms like Instagram, TikTok, and Facebook have evolved into bustling marketplaces for social selling, offering users alternative browsing and shopping experiences right within their favorite social apps.
The explosive growth of the social commerce market speaks volumes: sales are projected to hit $100 billion by 2025, marking a remarkable 22.4% increase from the previous year.
The smooth scroll, tap, and buy routine is just too tempting to resist. For CPG brands, it’s crucial to jump on board with these platforms to make shopping more enjoyable for their customers.
Why? Because social media is the perfect hub to connect with your audience and build genuine relationships through posts, messages, and other ways to engage.
With influencers and content creators taking center stage, driving the influencer marketing scene, and guiding shoppers toward the checkout, it’s clear why social commerce is a trend CPG brands can’t afford to miss out on.
Explore these influencer marketing examples for more insight.
5. Amplified consumer demands for sustainability
The consumer packaged goods (CPG) industry is abuzz with the sustainability trend. With climate change concerns and carbon footprints in the spotlight, consumers are making eco-conscious purchasing choices a priority.
For CPG companies, sustainability is a critical focus. Their products are constantly in use and replaced, making sustainability efforts essential. On top of that, research shows that the food and consumer goods sector is a major contributor to greenhouse gas emissions, highlighting the urgency for action.
Consumers are on board, too. A recent survey showed that more than 60% of participants claimed they would pay more for a product if it had eco-friendly packaging, showing a clear alignment between purchasing behavior and environmental values.
To meet this demand, CPG brands must step up their sustainability game and be transparent about their efforts. Customers want to know the ins and outs of sourcing, production, and environmental impact. It’s about building trust and demonstrating a genuine commitment to sustainability.
Take Clif Bar, for instance. They’re leading the charge on the sustainability front—from responsible sourcing to transparent communication about their processes. This not only builds trust but also fosters brand loyalty among consumers.
Discover how you can use QR Codes for sustainability initiatives.
6. More personalization and hyper-personalization
Personalization is a massive driver of consumer engagement. It’s been proven that consumers tend to open their wallets wider when experiences are tailored to individual preferences.
In fact, a survey where thousands of business leaders were interviewed revealed that a staggering 80% observed consumers spending at least 34% more when their interactions were personalized.
But now, the dawn of hyper-personalization has emerged, signaling a new chapter for CPG brands. This innovative approach offers two powerful avenues: DTC models and customer data platforms (CDP).
DTC models, as previously discussed, empower brands to forge direct relationships with their customers. By cutting out the middlemen, brands gain unparalleled insight into customer preferences and behaviors, enabling them to deliver truly personalized experiences.
Meanwhile, leveraging CDPs enables brands to provide tailored recommendations, a strategy known to boost company revenue by an impressive 5-15%.
In embracing hyper-personalization through DTC models and CDPs, CPG brands not only elevate the customer experience but also unlock untapped potential for growth and profitability.
7. Heightened consumer awareness on health and wellness
Since the onset of the global pandemic, consumers have had to reconsider their approach to health—a hardly surprising development! Shoppers are now challenging CPG brands to adopt a more holistic view of health, with a particular emphasis on preventive measures.
In McKinsey’s 2024 health report, which surveyed 5,000 Gen Zers and millennial consumers from the US, UK, and China, respondents noted an increase in purchases of wellness products and services compared to previous generations. Trends indicate a heightened interest in various facets of wellness, spanning sleep, nutrition, mindfulness, appearance, and fitness.
With health at the forefront of younger consumers’ concerns, there’s a growing awareness around food and beverage choices. For instance, consumers are consistently opting for alternative milk options over traditional dairy. Notably, oat milk consumption has gone up by at least 10.7%.
CPG brands must respond to these shifting preferences by innovating their product offerings to prioritize healthier alternatives. This includes options with reduced sugar content, enhancements for gut health, and more.
8. More reliance on AI
Leveraging AI (artificial intelligence) is becoming more prevalent in the CPG industry. Giants like Unilever, Kraft Heinz, and PepsiCo are leading the charge by integrating these tools into their operations.
The implementation of AI tools in the CPG industry has opened up a realm of possibilities, accelerating product development, refining market insights, and fostering product innovation.
Consider the growing demand for personalized experiences among consumers. AI tools have emerged as a game-changer in this arena. By tapping into vast reserves of customer data, CPG companies can discern intricate patterns, preferences, and market shifts.
Armed with this knowledge, companies can tailor their offerings with a finesse that resonates deeply with their audience.
Yet, the benefits of AI extend far beyond personalization alone. These tools expedite product development, automate quality control processes, and drive down research and development costs.
By reducing human error, CPG companies can confidently ensure that their products precisely meet the needs and desires of their customers.
9. Increase in self-care products
The upward trend of self-care is in perfect harmony with the wellness revolution, driving significant growth in the beauty and personal care market within the CPG industry.
The beauty and personal care sector consists of a diverse array of products and services, ranging from makeup and skincare to haircare and personal hygiene items. It’s a continuously expanding industry as consumers explore an ever-growing array of products.
Undoubtedly, social media and influencer marketing play pivotal roles in this trend. Together, they form a powerful partnership, showcasing self-care and beauty routines alongside the products used, captivating audiences and expanding product awareness.
CPG brands operating in the beauty and personal care industry should also consider other trends, such as sustainability and brand transparency, as they innovate their products.
This is essential for catering to eco-conscious and health-conscious consumers, ensuring they stand out and become the top choice for consumers seeking self-care products.
10. Growth in QR Codes
Did you know that the Bitly QR Code Trend Report reveals an 88% year-over-year increase in QR Code creations within the CPG industry? But that’s not the only 2D barcode trend on the horizon.
GS1 US, the nonprofit responsible for global barcode standards, is shifting away from traditional barcodes to 2D barcodes like QR Codes.
Bitly has announced its commitment to assisting CPG and retail companies in adapting to these industry changes by offering GS1-compliant QR Codes. With the launch of Bitly 2D Barcodes, CPG brands can begin their journey toward packaging compliance with GS1 standards.
Through this 2D barcode, you’ll have the opportunity to showcase greater brand transparency, highlight sustainability initiatives, and track customer behavior—all encapsulated in one QR Code. This is, after all the future of packaging.
Bonus content: Discover the power of using QR Codes for CPG brands on our blog.
Leverage CPG trends with Bitly
From the rise of omnichannel and social commerce to the uptick in self-care and health trends, CPG has experienced a tsunami of change. But taking strides in trends like AI, direct-to-consumer business models, and QR Codes can help your brand grow more agile to customer changing preferences and purchasing behavior.
Step into the future of the CPG industry with the Bitly Connections Platform by your side to generate powerful QR Codes and custom short links, and track all of the most important user data with Bitly Analytics.
Sign up today and stay ahead of the curve on consumer packaged goods industry trends!
