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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.

Gain more insights on Infiniti’s solutions for companies in the CPG industry

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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

Top CPG Industry Trends to Expect in 2020

CPG Industry Outlook

Over the past few years, rapidly evolving technologies, consumer demographic shifts, and changing consumer preferences has greatly shaped the consumer packaged goods (CPG) industry. However, with rapidly evolving customer expectations, CPG companies are under the pressure to offer personalized customer experience (CX) across every communication touchpoint. Consequently, it becomes vital for CPG companies to not only keep abreast with the latest trends but also to be prepared to operate amid uncertainty. To help you prepare for rapid market changes, our experts have curated top CPG industry trends that will transform the industry in the future.

Planning to invest in the CPG sector? Our custom market intelligence solution can help you gather CPG market insights and understand CPG industry trends and transformations.

Top CPG Industry Trends

Top CPG Industry Trends for 2020

Transparency and Sustainability

With buyers valuing transparency in business operations and sustainability in the products that they buy, transparent packaging is becoming one of the major CPG industry trends today. The “clean label” trend is one aspect of transparency. CPG brands are also exploring new packaging alternatives such as bio-plastics and well-known options like transparent glass containers. Hence, it’s no longer enough for CPG manufacturers to simply list ingredients on the label. Instead, CPG brands will need to focus on using packaging materials that are more appealing and environmental-friendly.

Digital consumerism

According to Infiniti’s CPG market research experts, nearly 70% of overall CPG growth came from online channels in the last decade. Therefore, ‘going digital’ is becoming one of the major CPG industry trends today. Also, CPG companies emphasizing on selling online in the coming years will enjoy a significant advantage over other brands.

Leading CPG brands are leveraging Infiniti’s market intelligence solution to identify the latest market innovations and stay ahead of emerging CPG industry trends. CONTACT US today!

Growth in home-delivery

Home delivery services are expected to become one of the most favoured CPG industry trends in the coming years as customers increasingly prefer to have their good delivered at their home. Also, with leading CPG brands introducing home delivery services, traditional CPG companies will be under the pressure to reinvent their sales models and expand their delivery service option. Therefore, in order to drive sales, businesses must constantly analyze their customers’ shopping patterns and evolving needs. Also, leveraging CPG market segmentation approach can help businesses efficiently categorize their customers and provide products to meet their demands.

 A Multichannel Future

Another exciting CPG industry trend that is expected to go mainstream in 2020 is the adoption of multichannel business strategy. Gone are the days where brands could win customers and sales solely by relying on their brand image. In today’s competitive CPG marketplace, brands must start adopting multi-channel strategies to reach consumers directly through digital channels.

Is your brand ready to adapt to the unexpected transformations and gain a leading edge in today’s competitive marketplace? Request for more info to know how our experts can help you identify evolving CPG industry trends and achieve your business goals.

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