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CPG industry trends

Emerging CPG Industry Trends in Asia

The rapid economic growth in Asia has resulted in increased consumer spending. Over the next decade, we can expect continued economic spend in Asia especially as the middle class widens. The economic, industrial and social reforms have transformed the lifestyle and consumption patterns of consumers in the region.  Various changes in the demographic, economic, and technological landscape in the CPG industry in Asia have also given rise to new CPG industry trends. Lured by the growth prospects, several foreign companies have already begun planning their market entry strategies into the Asian CPG industry. For such companies, it is vital to scrutinize and be watchful of the CPG industry trends and formulate strategies accordingly.

To gain a competitive edge and survive in the fiercely competitive Asian market, foreign companies must take a holistic approach inclusive of critical CPG industry trends and opportunities. Learn how our solutions can help!

CPG industry trends in Asia

CPG industryRise of ecommerce

One of the most disruptive change experienced by CPG companies in Asia is the emergence of ecommerce. Ecommerce, which is well established in the West, is gradually expanding routes to the FMCG sector in Asia’s developing markets. Increased access to the internet and smartphones are fueling are presenting a valuable opportunity for brands to target and deepen their relationships with customers. Over the last year, CPG industry sales online saw a steady growth globally, with China being one of the prime contributors to this growth. This change in consumer shopping preferences will greatly impact the CPG industry in Asia.

Growth in premium goods segment

Luxury goods are becoming highly popular among Asian consumers, fueled by urbanization, higher GDP, and changing lifestyles. Although this was relevant earlier in the fashion industry, the premium segment is becoming one of the most attractive CPG industry trends to watch out for. Demand for premium FMCG goods is growing particularly in regions like China, where the demand for luxury purchases are on the rise even in smaller cities and rural areas.

While the opportunities in Asian’s emerging markets are exciting, the market terrain in these countries is complex and dynamic. Get in touch with our experts to learn how we can help you navigate the challenges and capitalize on the opportunities coming your way.

Changing demographics

The aging population is a growing concern in Asian countries. By the year 2050, a good majority of Asia’s population will comprise of the elderly, soon making it home to the oldest population in the world. Such shifting demographics will imply significant change to the CPG industry trends in the region. The demand for certain goods are likely to increase in the long-run while the demand for some currently well-performing segments are bound to decrease. Such CPG industry trends must be considered for companies planning their market entry strategies into Asia.

Strong home-grown brands

Home-grown brands in Asia enjoy a strong and loyal customer base and will continue to dominate the CPG industry in the region. Some of these brands have even mastered effective customer targeting, flexible distribution, social media marketing, and customer engagement. Local brands understand regional consumers and mostly follow low-cost strategies while focusing on efficiency.

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Western Europe’s CPG Industry Trends to Expect Over the Next Decade

The CPG industry in Western Europe is poised to witness new waves of change over the next decade. Due to the current CPG industry trends such as migration from offline to online shopping channels, investors ushering in new streams of consolidation, and increasing regulations for CPG manufacturers, players in the CPG industry must reinvent their strategies if they are to thrive in the long-run. In this article, experts at Infiniti outline some of the key consumer packaged goods industry trends that we can expect to see over the next ten years in Western Europe.

Surviving in the saturated markets of Western Europe, in the long run, requires businesses to accurately foresee market changes and draft powerful strategies to adapt. Request a free proposal to know how our solutions can help.

Western Europe’s CPG industry trends

CPG industry trendsEmergence of niche consumer segments

The mass market will soon shrink, giving rise to a range of small yet lucrative customer segments. For instance, CPG industry trends like healthy foods, environmentally friendly product, and increased personalization will gain momentum. CPG companies that want to stay abreast with such CPG industry trends and effectively serve these market segments will have to be innovative and agile.

Cross-channel shopping and growth of discounter sales

Modern consumers now want to shop at more than one type of stores. Such CPG industry trends are becoming highly popular among consumers in Western European countries. They are increasingly making purchases from multiple retail formats, channels, and banners. Furthermore, in European countries such as Italy, Spain, and Germany, discounter sales are gaining increased momentum. Although such CPG industry trends could prove to be a threat for branded manufacturers, it could also prove to be a great opportunity for companies that decide to venture into private-label manufacturing.

We can help CPG companies in Western Europe build operating models that hold promise as future growth engines. Get in touch with us to know more!

Digital shopping

‘Going digital’ is one of the vital CPG industry trends that is going to take the sector by storm. One such trend is ‘online grocery’ which is gradually becoming a vital source of income for both retailers and CPG manufacturers. Furthermore, as online grocery shoppers tend to buy the same items every week rather than browse for new products, it is essential for CPG brands to secure a place on consumers’ digital shopping lists once this trend goes mainstream.

Stricter regulations

Government bodies across Western Europe are introducing new measures to boost consumer protection and promote sustainability. Changing environmental standards and new laws will make it harder for companies operating in Western Europe to stay ahead of the regulatory curve.

Learn more about how Western Europe’s CPG industry is changing

supply chain challenges

Top Supply Chain Challenges Facing CPG Companies

The Consumer packaged goods (CPG) industry is already experiencing a seismic change due to challenges including rising raw material costs, stalled demand, declining profits, skyrocketing retail pricing pressures and the never-ending shift in consumer preferences. Furthermore, the changing consumer preferences is bringing about new supply chain challenges for CPG companies. Companies selling consumer packaged goods must effectively identify and mitigate supply chain challenges coming their way in order to drive growth by reaching new customers and channels.

Leaders of consumer products companies need to strike a delicate balance between cost, quality, product innovation, and market growth, all while maintaining margins. Request a free proposal to know how experts at Infiniti can help you achieve this.

Supply chain challenges for CPG companies

supply chain challengesConsumer demand for variety

Modern consumers are highly demanding. As a result, there is a constant urgency among players in the CPG industry to offer new products that match the changing consumer preferences. This translates to more SKUs and shorter product lifecycles. Th consequent complexity in product development, sourcing, production and fulfillment will add on to the supply chain challenges faced by CPG companies. Reacting to changes in consumer preferences would mean that the CPG supply chain needs to be agile enough so that the required adjustments can be orchestrated end to end across the supply chain.

Venturing into new markets

Experts at Infiniti research are of the opinion that the fastest growing CPG companies are those that choose to compete in the fastest growing product categories and geographic territories. Investing in the right markets is one of the key drivers for growth, which comes with its own set of supply chain challenges. Furthermore, overcoming key supply chain challenges in terms of flexibility will help companies in the consumer packaged goods industry to easily penetrate new markets and create potentially new delivery models and fulfilment channels.

Get in touch with our experts for more insights on how CPG companies can overcome critical supply chain challenges.

Digital transformation of supply chains

Amidst the rising popularity of digital innovations and enhanced customer experiences, it is no surprise that digital transformation is one of the critical agendas for top executives at leading global CPG companies. However, this cannot be rolled out successfully unless their back-end infrastructure is not capable enough to ensure timely delivery of goods.

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CPG industry

Trends That Will Shape the Consumer-Packaged Goods Industry in the next Decade

Looking back, there has been tremendous and thrilling growth in the global consumer packaged goods (CPG) industry. Top companies in the CPG industry have been successful in launching innovative products to meet an ever-growing array of customer needs and desires. Furthermore, we have also witnessed these companies rapidly expanding into the burgeoning consumer markets of the developing world. Making this breakneck growth was only possible and profitable through aggressively building global scale along every part of the value chain. Strategies including increased margins and weighting of portfolios toward fast-growing categories in the CPG industry have delivered stellar shareholder returns.

However, over the next decade, the CPG industry can expect tremendous changes due to the upheavals in global consumer and supply markets. For instance, Asia is expected to take over the West as the main consumer market, which means that companies in the CPG industry will be expected to display new levels of value and innovation. In this article, we profile some of the potential future CPG industry trends that will have a significant impact on the competitive advantage of companies operating in this sector.

The upheavals in global consumer, retail, and supply markets over the coming decade threaten to wreak havoc on established business models and marketing approaches. Request a free brochure to know how our solutions can help you stay prepared.

Global CPG industry Trends

CPG industryNew consumers in emerging markets

In the years to come, the growth of emerging markets will continue to outstrip the growth of the developed world, and that too by a wider margin. Emerging countries in Asia including China, India, and Indonesia currently have a significant share of growth in the global CPG market. This share is expected to show a rise over the next decade. As a result, the global middle class will expand dramatically. However, it would prove highly challenging for players in the CPG industry to meet the demands of these customer groups. Success in winning over these customers will require adequate market segmentation and innovation to meet their needs.

Rise of the digital consumer

Technology has undoubtedly played a major role in the growth of the CPG industry. It will be truly disruptive in the coming decade. Companies in the CPG industry will face some major strategic questions in identifying how to win in this new digital world —including how to build a successful business through online retail channels, how to build brands and categories in a socially networked world. They would also need to gain a better understanding of how to exploit technology-driven opportunities to understand consumers more deeply and connect with them more often.

Request a free proposal to learn more on the changing trends in the global consumer packaged goods market and how we can help you formulate strategies to meet the changing consumer expectations.

Shift to value

A recent study by the experts at Infiniti Research suggests that over 50 percent of consumers in the US have been driven by the financial crisis to seek more value offerings. This shift can have a major implication on the consumer packaged goods industry’s profit formula. Much worse, it could even erode the pricing power of brands. Companies are employing a variety of strategies to address such CPG industry trends. Some brands are rationalizing their price lists to help retailers control SKU proliferation. Others are even riding the shift to value by running joint promotions with private-label brands in adjacent categories.

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Brand Strategy Helps A Personal Grooming Kit Manufacturer Improve Customer Reach and Assess Their Perception of the Brand

Over the past few years, the global CPG industry has started witnessing a transition from offline to online channels and is mostly affected by factors such as waning currency values and slowing GDP growth. As a result, CPG industry players have started thinking beyond the conventional shopping techniques to develop and boost the shopping experience for customers. Also, due to the changing consumer behavior and needs, firms are embracing technologies to meet the ever-growing array of demands.

The personal grooming industry is one which produces consumer products that are used for personal hygiene and beautification. Some of the products that are included in this category include wet wipes, toilet paper, toothpaste, talcum powder, shaving cream, razors, moisturizer, perfumes, pomade, makeup, lotion, lipstick, lip gloss, deodorant, and colognes. The global market for personal grooming is expected to witness substantial growth over the coming years owing to the rising disposable income of individuals across the globe; thus, enabling them to spend on luxury personal care products. Additionally, while the personal care products segment for women is a prominent category, the introduction of the men’s product line for personal grooming has bolstered the growth of the market.

However, our recent analysis shows that personal grooming companies across the CPG industry are facing challenges in terms of:

  • Move towards digital marketing: The global emergency of e-commerce sites and the migration of the customers to online platforms are forcing companies in the personal grooming space to re-strategize their marketing campaigns to retain and acquire new customers.
  • Highly competitive market: In matters of brand variety, size, international establishment, the personal grooming industry has reached saturation. As a result, the growth margin will decrease as big players try to expand their market share.

Many such factors are compelling firms in the personal grooming space to leverage the use of brand strategy solutions.IR_RFP Brand strategy solutions help firms reach out to the target customers and gain a better understanding of consumers’ demands and their buying behavior. These solutions also help companies reach out to a larger group of audience and enhance brand awareness.

The Business Challenge

  • The client: A leading personal grooming kit manufacturer

The client, a leading personal grooming kit manufacturer with manufacturing units spread across the UK, wanted to understand the emotions of the customers better and build relationships with them to foster customer loyalty. Additionally, the client wanted to devise new strategies to build interest among the customers about the products being offered as they were facing challenges in improving their brand positioning strategy and retaining profitability.

Want more information about our brand strategy solutions for the CPG Industry?Ask an analyst

The Journey

Infiniti’s brand strategy experts carried out comprehensive interviews and discussions with prominent stakeholders in the CPG industry space to help the client remain competitive and build a unique brand identity across the personal grooming space. The experts also compiled information from a wide array of secondary sources such as company presentations, paid industry databases, and industry forums to help the client improve their customer reach.

The Solution and the Business Impact

With the help of Infiniti’s brand strategy engagement, the client was able to devise effective brand strategies to engage and retain customers and create a superior brand image. Additionally, the client communicated effectively with the market and improved the interaction with the customers; thereby, enhancing brand awareness. This helped them capture a significant share of the market.

The Future

The requirements and aspirations of today’s individuals are rapidly evolving. With the surge in disposable income, individuals are becoming more discerning and indulgent. Additionally, in the near future, consumers will start preferring innovative personal grooming and personal care products that are created specifically for them.

A must-read case study for strategy specialists and decision makers looking to develop a better understanding of the personal grooming kit manufacturers across the CPG industry.


Marketing Strategy Enables a Consumer Goods Packaging Client to Direct their Marketing Efforts

With the rising health consciousness, the consumer’s buying habits have changed, which has further increased their spend on products to remain healthy. As a result, the businesses in the consumer goods space are refining their strategies to capture growth and efficiently connect with their target audience. To profile the most profitable customers and tailor their product and services to their needs, leading businesses in the consumer goods space should ideally include a robust marketing strategy as a part of their business offerings. In this relatively competitive environment, businesses offering consumer packaged goods are focusing on consolidating their position in emerging markets and minimizing complexity to stay ahead of the curve. With the aid of marketing strategy, leading businesses in the consumer goods space can meet the relentless demands for the products and services and develop a profitable relationship with the customers. Also, marketing strategy plays a pivotal role in characterizing the needs of the customers and directing their marketing efforts to improve business performance.

To create a strategy that focuses only on the strengths and needs of the customers, consumer goods manufacturers are approaching renowned solution providers such as Infiniti. With years of expertise in offering a plethora of solutions, Infiniti’s marketing strategy solution focuses on monitoring and evaluating the effectiveness of marketing campaigns and leveraging various forms of social media channels such as advertising to create an effective point of sale strategy.IR_Brochure

The Business Challenge

A leading consumer goods packaging client with offices spread globally was facing predicaments drawing a marketing plan to respond to the changes in consumer needs and attitudes in the industry. The client wanted to conduct a SWOT analysis to accurately position their products in the retail space. Moreover, the client wanted to utilize marketing strategy to offer personal and flexible customer service and maintain a marketing campaign that resonates with the intended target audience. The primary aim of the engagement was to identify the company’s value proposition and devise a marketing plan to improve brand awareness and enhance brand loyalty.

IR- marketing 01

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Our Approach

With an aim to improve the marketing efforts and tap potential business opportunities, Infiniti’s marketing strategy experts carried out extensive interviews and discussions with leading stakeholders in the consumer goods space. The consumer goods space is witnessing a manifold increase in the number of new players. Therefore, to tackle the bottlenecks and improve the overall marketing effectiveness, Infiniti’s experts compiled information from a wide array of secondary sources such as paid industry databases, company presentations, and industry forums.

Benefits of Infiniti’s Solution

The marketing strategy solution offered by Infiniti helped the client assess and adjust their marketing efforts to meet the consumer’s requirements. Moreover, the engagement also offered suitable ways for the client to understand the prevailing competition, the target market, and create a robust, unique selling proposition to improve their market effectiveness. The engagement also focused on identifying and shortlisting the potential target segments to tailor their marketing efforts to enhance business productivity.

Additional Benefits Offered by Infiniti Include

  • Devised a well-defined market strategy for consumer goods and offered a consumer-recognized brand product
  • Created an efficient distribution channel and gathered and analyzed customer data
  • Gained strategic insights on customer buyer behavior and aligned companies activities with their objectives
A must-read case study for strategy specialists and decision makers looking to develop an understanding of the retail and CPG industry


Competitive Intelligence for a Renowned CPG Client Helps Understand the Supply-demand Relationship

In recent years, the CPG industry has started witnessing slow consumer spending with the declining GDP growth and currency weakness. At the same time, with the fluctuations in the consumer’s needs and habits, leading CPG firms should ideally stay ahead of the competition to go on par with the mass-shopping behavior. Also, in the CPG industry, it’s always better to understand the competitors to better position products in the market space.

To remain competitive and stay ahead of the curve, leading businesses in the CPG industry are relying on competitive intelligence solutions. Competitive intelligence assists businesses to gather and analyze information to help make better-informed decisions. As the market for CPG is shifting toward innovations, competitive intelligence helps businesses anticipate challenges and face potential obstacles. Moreover, leading businesses in the CPG industry can better understand the supply-demand relationship to create an accurate prediction of future market conditions.

To gain a better picture of the current market space and build new strategies, a leading CPG manufacturer approached Infiniti. Infiniti’s competitive intelligence solution helps businesses in the CPG industry profile the potential competitors and make informed business decisions.IR_Brochure

The Business Challenge

A leading CPG client with a considerable number of manufacturing units across the globe was facing predicaments keeping updated with the new trends and gaining detailed profiles of new competitors. With the help of a competitive intelligence study, the client wanted to understand the actual consumer behavior and deliver customized offerings to the customers to capture more market value. Furthermore, the client wanted to collect relevant information about competitors’ strategic intentions and business capabilities and increase competitive maturity. The primary aim of the client was to stay updated on the social media trends to understand the market effectiveness.

IR- competitive01

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Our Approach

To help the client gain a competitive advantage over their peers, the competitive intelligence experts at Infiniti carried out both qualitative and quantitative research and interviewed prominent stakeholders in the CPG space. Moreover, to assess the market effectiveness of the product, Infiniti’s experts also compiled information from secondary sources such as news media, industry experts, and trade shows and conferences.

Benefits of the Competitive Intelligence Solution

The competitive intelligence solution offered by Infiniti helped the CPG client focus on short-term goals and increase revenues. The engagement offered by Infiniti also helped the client profile the potential competitors that account for a majority share of the market and make better-informed business decisions. The solution offered also helped the client identify lucrative markets and offer a differentiated set of products, and dynamically fine-tune marketing efforts to gain a competitive advantage over the counterparts.

Additional Solutions Offered by Infiniti Include:

  • Understood the competitive scenario and increased profit margins and boosted the stock prices of the products
  • Effectively gauged the market opportunities and drove continual efficiency
  • Gained deeper insights into the price-sensitive customers and identified specific channels and SKUs to reach out to niche target segments
A must-read case study for strategy specialists and decision makers looking to develop an understanding of the retail and CPG industry



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