The consumer-packaged-goods (CPG) industry has struggled to grow over recent years. While the sector saw consistent growth over a decade ago, it faces a variety of challenges currently. The CPG industry is highly competitive and maintaining market share can be difficult in an uncertain market. With its recent shift to the digitization and the direct-to-consumer approach, the competition, and the need to develop targeted marketing strategies have risen simultaneously. Additionally, as the COVID-19 pandemic continues to affect the world, every industry faces significant changes.
The CPG industry needs to revamp its marketing approach before it is too late. Various CPG industry trends have surfaced over recent months, and any one of them could be a significant game-changer for the industry. As consumers’ buying behavior, spending patterns, and needs change, so should CPG marketing.
Over the beginning of 2020, the COVID-19 pandemic took a substantial toll on many industries and most markets, the consumer-packaged goods industry being one of them. Due to COVID-19, the CPG industry has changed its approach, and CPG marketing has been revamped and adopted a new strategy. Digital dependence has increased over the recent decade, and many industries have realized the benefits of the platforms digitization offers. Digitization is one of the most critical changes in the industry and has influenced every trend over recent times.
Another major challenge for smaller CPG companies is acquiring market share. As many top CPG companies continue to hold a significant market share in the industry, smaller companies analyze their strategies and attempt to adjust. In this article, Infiniti’s research experts discuss the industry trends that are changing the face of CPG marketing, as well as the biggest differentiator in the top CPG companies.
The CPG industry is currently facing a plethora of challenges, and Infiniti provides the ideal solutions to overcome them. To learn how Infiniti Research helps CPG companies gain market share, request a free proposal.
CPG Industry Trends of 2020
CPG industry trends have reformed the approach of companies towards marketing, consumers’ needs, and making an impact. The following four CPG marketing trends are the major game changers of the industry, and all companies need to understand and implement this into their marketing strategies.
Digitization and Omnichannel Marketing
With the constant advancements in technology and the ongoing COVID-19 crisis, how consumers interact with purchasing has changed drastically. The ability to provide products and services direct-to-consumer is highly sought-after. Efficiently executing operations over digital interfaces is a challenging prospect. It requires significant investment and multiple strategic and operational changes. However, the ROI, if efficiently executed, has proven to be worthwhile across industries. As companies compete for top rank on search engine result pages, a significant portion of the consumer packaged goods industry has very recently shifted to a digitized approach. This trend has changed how companies interact with consumers, how supply chains function, how key performance indicators are identified, and consumer needs and demands.
Digitization has also presented itself in marketing, moving many CPG industry players to an omnichannel marketing approach. This is the combination of traditional marketing, and an addition of newer platforms, and efficient consumer-centric environments. A comprehensive digital marketing approach can keep a company far ahead of the curve.
Personalization of Products and Services
The personalization of products and services has been a significant recent CPG industry trend. It creates a more personable experience across all ages and provides consumers with an experience. In recent times, experts have advised a focus on personalization of products and services. Providing customers with the ability to specify their wants and needs, such as a user-friendly website, can increase customer satisfaction substantially. Having both the company and the consumer investing time and energy into this personalized product reduces the chances of customer churn significantly and increases brand loyalty. It also helps companies learn consumers’ preferences, and habits, and use this data for future product design.
Sustainability in the CPG Industry
As global warming and the environmental crisis become real and overshadowing issues across the globe, consumers and companies have started taking a step towards reducing damage. Sustainable packaging and sustainable products are in high demand, as are companies that promote an important cause. Millennials and Gen-Z account for a large portion of consumers and create a mostly cause-driven environment for consumers and companies.
The CPG industry has started to invest majorly into sustainable practices, most evidently in terms of packaging. The reason for this is, though many companies want to make a change, revamping an entire product line to be sustainable is not viable. This is the reason various companies are turning to sustainable packaging, as well as the reason many sustainable start-ups are starting to dominate smaller markets. To stay ahead of the curve, CPG industries across the globe need to move to more environmentally friendly practices.
Brand Values and Social Causes
On a similar note as the previous point, brand identity and values have become a significant focus in the CPG industry. Millennials and Gen-Z find it more attractive and appealing to not only purchase, but also promote products and services from companies that share their values. Many CPG industry players have started to support various social causes on social media. Supporting a social cause is one of the crucial criteria for consumers’ brand loyalty. Additionally, having brand values that are widely accepted help organic engagement and impressions grow exponentially. A social media feed that further promotes and displays these values is highly beneficial for brands. Also, when companies choose to donate, assist in a crisis, or support groups in need, it is highly desired by consumers across the globe.
These and many other CPG industry trends have overwhelmed the market, to understand how they influence your company, get more information.
What sets the Top CPG Companies apart?
Several top CPG companies have maintained sales, customer retention rates, and market share continually over the past few years. CPG companies across the globe are attempting to attain the same. Infiniti’s research experts suggest market intelligence solutions. Analyzing, understanding, forecasting, and identifying crucial data for companies, market intelligence experts help some top CPG industry players achieve sustainable growth. Market intelligence solutions span wide in the functions they serve. Implementation is critical, and with our experts, some of the top CPG companies have implemented market intelligence solutions in the following ways:
- Target consumers: Digitization and efficient data management systems allow companies to procure and utilize information on the preferences and habits of their consumers. This enables efficient product development, and with focused segments, it provides for effective CPG marketing. Market trend analysis allows the top CPG companies to understand their consumers and develop comprehensive marketing strategies.
- Staying ahead of market trends: By leveraging market scanning solutions, top CPG companies stay ahead of market trends. They stay informed on supply-demand shifts, track emerging market trends, keep tabs on target market segments, and gain insights on the impact of these factors. This helps them efficiently prepare and avoid losses or customer churn by strategizing prematurely.
- Market Intelligence: Leveraging market intelligence solutions enables the top companies in the consumer-packaged goods industry to prepare for every barrier in the market. It also allows them to efficiently forecast changes, strategize, and prepare for CPG industry trends while also understanding consumers’ preferences and maintaining large market shares. Market intelligence firms such as Infiniti Research help CPG companies enhance sales and reduce churn rates significantly.
Being a leader in an industry as competitive as the CPG industry is difficult but achievable. To learn how companies can succeed in this industry, speak to our experts.