In the fast-paced Consumer Packaged Goods (CPG) industry, which encompasses everything we regularly consume—from foods to everyday essentials like toilet paper and cosmetics—adapting to consumer demands is crucial. Often referred to as Fast-Moving Consumer Goods (FMCG), this sector thrives on products that we use daily and need to replace or replenish regularly.

For those navigating the dynamic CPG landscape, staying ahead of changing consumer trends is not just about boosting revenue with each new wave but also about building lasting customer loyalty and ensuring sustainable growth. 

With 2024 ushering in fresh trends every day, we’re here to keep you updated with the top 10 CPG trends for 2024 – 2025, empowering your business to stay relevant and competitive.

10 CPG Trends for 2024-2025

1. Sustainability Practices On a Rise

67% of consumers are more likely to stay loyal to brands that tackle societal issues head-on. As awareness of consumption’s impact grows, customers are demanding more from their products. They seek goods that not only offer value but also align with sustainability principles.

Compostable, recyclable, and reusable products have become hallmarks of conscious consumerism. To underscore their commitment, many Consumer Packaged Goods (CPG) brands are now pursuing certifications like Certified B Corporation, Best Aquaculture Practices (BAP), GOTS Certified, and Rainforest Alliance Certified.

One standout example of a CPG brand leading the charge in sustainable practices is Unilever. Launched in 2010, its ‘Sustainable Living Plan’ aims for long-term sustainability goals. More recently, Unilever has focused on creating inclusive, deforestation-free palm oil supply chains. This initiative not only addresses supply shortages but also strengthens connections with raw material sources and enhances the lives of those it partners with.

2. More Healthy & Wellness Products

The 2022 McKinsey report has shed light on what matters to consumers when it comes to Consumer Packaged Goods (CPG): health, fitness, nutrition, appearance, sleep, and mindfulness. With the health and wellness market expected to reach $8,946 billion by 2030, growing at an annual rate of 6.9% since 2023, it’s clear that people are taking their wellness seriously.

Today’s shoppers, particularly millennials who are now the largest group with spending power, are smart and skeptical about misleading claims. They’re calling out brands for ‘greenwashing’—making false promises about being eco-friendly or health-conscious. Simply slapping a “clean” or “natural” label on products won’t cut it anymore. Consumers are looking for products that truly deliver on their promises.

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In response, companies need to get real about how they talk about and present their products. Understanding what consumers are looking for and aligning your brand’s values to meet those expectations is crucial. It’s all about crafting messages that resonate with authenticity and effectiveness, showing that you’re not just jumping on the wellness bandwagon but are genuinely committed to contributing to their well-being.

3. E-Commerce Expansion

Even after the world has moved on from COVID-19, the trend towards online shopping hasn’t slowed down. In fact, with the growth of e-Commerce, it’s becoming even more popular. Add to that the expansion of delivery services, and we’re seeing consumer goods e-Commerce sales on track to hit $1.8 trillion by 2025. Big players like Amazon and Alibaba are major drivers in this exciting evolution.

For CPG (Consumer Packaged Goods) brands looking to join the e-Commerce wave, the opportunities are massive. A key benefit is reaching a wider audience beyond traditional local markets. Plus, e-Commerce platforms offer a smooth shopping experience that keeps customers coming back for more. Ultimately, this results in a win-win: happier customers and higher revenues for CPG brands.

4. Direct-to-Consumer Distribution

The world of Consumer Packaged Goods (CPG) is quickly changing as brands look for fresh ways to stay connected with shoppers. Direct-to-consumer (DTC) models are leading the charge, thanks to a mix of better delivery services and people’s growing desire to have their household items delivered straight to their doors. 

This trend is opening up fantastic opportunities for both big-name CPG companies and new startups to talk directly with their customers, learn what they want, and make shopping a better experience for everyone.

For example, Target, one of the top CPG retailers in the United States, has introduced ‘Same Day Services’ across all its stores. This means customers can now easily choose whether they want to pick up their groceries or have them delivered on the same day, all while enjoying endless perks through membership programs. This move by Target is not just about making shopping more convenient; it’s about setting a new standard for customer service in the retail world.

5. Private Label Brands

Private label brands are gaining ground as an emerging market, spurred by shifting consumer preferences towards value-driven options. These brands, often resembling well-known counterparts in quality, offer competitive prices and significant profit potential, particularly within the CPG sector. 

Many retailers are seizing the opportunity by launching products under their brand names, as they are relatively easy to manage and promise substantial returns.

One notable example is Trader Joe’s, a beloved local grocery store in America. Known for its attractive prices and a constant stream of innovative products, Trader Joe’s primarily stocks its private-label brand. For instance, instead of Cheerios, you’ll find “Joe’s O’s” cereal on their shelves.

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6. Building Loyalty In an Inflation Era

64% of Americans forecast food prices will go up in 2024 as they also expect inflation to be at 3.7%.

Many of us have found ourselves sticking with our favorite brands, even when encountering seemingly better-priced and higher-quality alternatives while grocery shopping. However, as we approach 2024 and beyond, inflation has emerged as a significant factor influencing consumer decisions when purchasing Consumer Packaged Goods (CPG).

For businesses, navigating this economic challenge and reducing prices isn’t a simple task. Hence, many CPG brands and retailers have responded by rolling out a multitude of loyalty programs. These initiatives not only foster greater customer loyalty but also provide businesses with invaluable data insights derived from customer memberships, informing future strategies.

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A prime example of such a loyalty program is PepsiCo’s Tasty Rewards. This program encompasses a range of PepsiCo brands, including Pepsi, Lipton, Quaker Oats, Doritos, and more. By signing up for membership, PepsiCo enthusiasts gain access to special discounts and engaging activities like sweepstakes, along with a host of other perks.

7. Elevate Growth From Retail Media Networks

In 2024, the value of data has soared, especially in the Consumer Packaged Goods (CPG) industry, thanks to a groundbreaking innovation known as ‘Retail Media.’ This new advertising frontier transforms retail platforms, stores, and various delivery channels into vibrant Business-to-Consumer (B2C) communication avenues. Retailers are now leveraging their spaces—not just for selling products or services—but also for advertising. This blend of online and offline marketing efforts has given rise to what’s known as Retail Media Networks (RMNs).

RMNs allow retailers to capitalize on the wealth of customer data collected through their networks and other digital footprints, such as social media interactions and website visits. In partnership with CPG brands, they’re using this data goldmine to forge closer connections with consumers.

For CPG brands, the advantage is clear. Moving beyond the constraints of third-party data, insights from retailers enable them to advertise much closer to the crucial point of purchase. This shift is significant, with over 70% of advertisers convinced that retail media networks can dramatically boost customer engagement and sales. Despite being a relatively new player in the advertising arena, retail media made up 11% of the estimated $875.4 billion spent globally on advertising in 2023—a small but impactful share.

Retail giants such as Amazon, Walmart, Target, Carrefour, Tesco, and Sainsbury’s are at the forefront, rapidly integrating Retail Media strategies to draw major advertisers to their platforms.

8. Multi-Channel Marketing

With over 5.04 billion people worldwide using smartphones and social media, the opportunity for businesses to reach a massive audience is unprecedented.

In 2021, consumer goods companies in the U.S. spent roughly $4.61 billion on TV ads, a slight decrease from the previous year. However, by 2023, their spending on digital ads jumped to $39.50 billion. This trend highlights a significant shift; even though these brands have historically favored TV and traditional ads, they’re now increasingly focusing on digital marketing through various channels.

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L’Oréal Paris, a leading name in the consumer goods sector globally, exemplifies this shift brilliantly. It has successfully embraced digital marketing, employing strategies like content creation and influencer partnerships across popular platforms such as Facebook, Twitter, Instagram, YouTube, Pinterest, and LinkedIn. 

Furthermore, L’Oréal Paris uses local social media accounts to share content tailored to specific regions, demonstrating its global yet personalized approach to marketing.

9. Leverage More Personalization Innovation

The hyper-personalization trend is shaking up how we think about consumer products, especially in the Consumer Packaged Goods (CPG) industry, where making personal connections hasn’t traditionally been the focus. 

Wondering how it’s possible for companies used to targeting the masses to get personal? StartUs Insights shines a light on this with five standout startups that are making it happen:

• Adrich: This US-based platform utilizes machine learning and analytics to understand consumer usage behavior, enabling FMCG companies to grasp trends, customer behaviors, and usage patterns, thereby forging closer connections with consumers.
• Yosh.AI: Employing natural language processing (NLP), Yosh.AI serves as a smart assistant, offering tailored product information and recommendations to customers based on their individual needs.
• Matrix and Vectors: Offering an omnichannel solution, Matrix and Vectors enable CPG retailers and consumers to optimize business growth. Through retail analytics tools, it tracks customer experience, sales, and supply chain movements, facilitating cross-channel marketing and localized demand estimation.
• Elegance.Io: This AI-driven customer loyalty platform empowers CPG businesses to craft personalized content, recommendations, and reminders. By generating real-time consumer profiles from data across all channels, Elegance.Io enhances consumer engagement and loyalty.
• Cellr.wine: Fostering connections between CPG brands and consumers, Cellr.wine leverages interactive packaging and cloud-based software. By creating QR codes that enable personalized interactions, Cellr.wine enhances consumer engagement and brand loyalty.

These startups demonstrate that personalizing the shopping experience isn’t just possible across the board—it can deepen connections between brands and consumers, making every purchase feel a little more special.

Discover the power of personalization with our latest blog “Top 100 Personalization Marketing Statistics“

10. The Evolution of Generative AI

Despite certain skepticism around AI, particularly in academic and artistic circles, it’s clear that the Consumer Packaged Goods (CPG) industry finds valuable leverage in this technology. Generative AI (Gen-AI) stands out for its ability to innovate, creating fresh outputs from existing data through sophisticated algorithms.

Beyond traditional AI benefits—like enhanced automation, elevated customer experiences, and market adaptability—Generative AI introduces a new layer of personalization and precision. It crafts uniquely tailored results that boost customer loyalty, retention, and marketing efficacy.

Additionally, GenAI offers CPG companies significant cost reductions and heightened agility in supply chain and manufacturing processes. It’s worth noting that AI can reduce the time to market for new products by up to 50% and increase the efficiency of research and development processes by over 30%.

A standout example is Nestle’s adoption of the generative AI platform Tastewise. This tool provides deep insights into restaurant trends, home cooking habits, and consumer preferences, empowering Nestle to quickly innovate products that resonate with evolving tastes.

Stay Updated on the CPG Industry

The latest trends in the CPG industry are making significant advancements in several key areas. From the growing emphasis on sustainability, health, and wellness among consumers, to the increasing reliance on online channels like e-commerce and DIT distribution in the purchase journey, and the adoption of innovative technologies such as AI to cater to the demands of the Personalization Era.

Undoubtedly, new trends and innovations are constantly unfolding, sometimes catching us off guard. Even as you read this, new developments may be taking shape. Mandala Cosmos is a tool that helps you discover emerging trends conveniently and in real-time, both within the CPG industry and among consumers. Don’t miss out >> click here << to start your free 15-day trial!