According to Bain & Company, leading retailers adopting AI-powered personalized marketing have observed a 10% to 25% increase in return on ad spend for targeted campaigns. As consumer habits keep evolving, CPG brands need fresh ecommerce strategies that engage customers directly and deliver personalized experiences across multiple channels. Today’s consumers expect personalized products, easy online shopping, and brands that anticipate their next move. Its goal is to make complex topics, such as artificial intelligence, accessible and actionable. The Consumer Packaged Goods (CPG) sector is a bustling arena of competition where industry giants wrestle for shelf dominance alongside emerging brands.
Consumer Packaged Goods (CPG) Market Size
For example, product recommendations triggered by in-store activity or customer service interactions can dramatically increase conversion rates and loyalty. However, only 38% of brands report having the infrastructure in place to support this level of integration today. Even as the impact of the COVID-19 pandemic wanes, consumers continue to prioritize health-conscious choices. Simultaneously, there has been an increase in sales for brands actively championing sustainability.
- According to Bain & Company, leading retailers adopting AI-powered personalized marketing have observed a 10% to 25% increase in return on ad spend for targeted campaigns.
- Digital shelf analytics help brands understand how their products are presented, promoted, and sold across various online platforms.
- Understanding the dynamics of CPG is essential for businesses looking to thrive in today’s competitive landscape.
- A few CPG brands dominate the industry, including Unilever, Nestle, PepsiCo, and Coca-Cola.
- For example, brands in the personal care segment are using AI-powered tools to recommend products based on skin type, preferences, and purchasing history.
- In response, CPG companies are reformulating existing products and launching new offerings to cater to this health-conscious demographic.
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The insights above only scratch the surface of what’s happening in the consumer goods landscape. For a deeper analysis of macroeconomic trends, digital channel strategies, supply chain innovation, and cpg accounting emerging consumer behaviors, download the full 2025 Consumer Goods State of the Industry Report. Whether you’re a retail marketer, D2C founder, or ecommerce strategist, this report provides the guidance needed to navigate disruption and unlock growth in the year ahead. Certain segments like plant-based foods, luxury pet care items, and health and wellness products are driving growth right now.
Household products
In this blog, we’ll dive deeper into what makes consumer packaged goods tick—from what these products are, to how they’re marketed and the trends shaping their future. According to Nielsen, sustainable-minded consumers were expected to spend up to $150 billion on sustainable products by the end of 2021 in the US alone. The company says the top-growth subcategories of the sustainable movement include vegan, cruelty-free, and B corporations. For example, Beardbrand has built a massive following on YouTube with videos that go far beyond product promotion. Its content includes grooming tutorials, barbershop transformations, and personal stories from its community, offering real value and entertainment.
How to use retail data for FMCG and CPG
- There is also a rise of plant-based and organic products in the market as a by-product of this larger trend.
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- CPG products are also segmented by application, which refers to the end-use or purpose that each product serves.
- Rely on AI and customer data insights to deliver targeted recommendations, customized offers, and tailored marketing messages.
- The Middle East & Africa (MEA) region is witnessing steady growth in the CPG sector, driven by a young and growing population, as well as an increasing middle class.
CPG Online Bookkeeping products are an essential part of the retail industry and account for a significant portion of overall sales revenue. Leading brands, including PepsiCo, have pledged to use 100% recyclable packaging by 2030. Many are also introducing new sustainable CPG products, including organic, plant-based, and non-GMO options, to meet consumer consciousness around health and the environment.
Best of all, we’ll show you how to leverage this information for your action plan. This analysis helps ensure that products are available to consumers when and where they need them, whether in-store or online. By analyzing net sales where and how competitors are selling their products, CPG brands can identify new channels, streamline logistics, and improve distribution efficiency. Price transparency, promotional campaigns, and loyalty programs have become critical components in attracting and retaining cost-conscious consumers. For companies aiming to capitalize on this trend, it’s essential to innovate and diversify product lines to meet evolving consumer health expectations.