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 [...]
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.
Western Europe’s CPG industry trends
Emergence 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.
‘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.
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.