7 Trends of the Consumer Goods Industry- the way to future
The latest trends are reshaping the Consumer Goods industry post-pandemic and the world is ready for it…Are you?
The consumer goods industry is witnessing an overhaul with rapidly changing consumer behaviour. Consumer tastes, preferences, and needs are evolving with changing global affairs like the pandemic.
CPG companies have launched innovative products to meet an ever-growing array of human needs and desires.
The consumer markets across the globe will see a lot of changes in the coming years. Asia will overtake the west in consumer products. Companies will adopt a lot of innovation to fulfil customer requirements.
The rising internet penetration also will have a significant effect on the traditional business model by the companies.
Following are some of the future trends that will drive the consumer goods markets:
1.Innovation for a Reason: Constant Innovation has allowed companies to produce new products, the same trend will continue in the future. For example, In the US Grocery channel, the number of SKUs has increased by 50% in just the past seven years. Soon, a lot of new products will be available in the consumer industry.
2.Investment to Strengthen Pillars: To make this expansion possible—and profitable—CPG players will be investing heavily in building global scale along every part of the value chain, including R&D, marketing and sales, procurement, manufacturing, and distribution.
3.Perform or Perish: Over the coming decade, the consumer industry will find as much looser as winners. The top 5 reasons for this to happen are:
- A countless new middle-class consumer in the emerging markets
- The rise of the digital consumer
- The shift to value
- The Impact Impact of demographic changes that include ageing and consumption patterns
- Increase in volatile input cost due to shortage in natural resource and emerging large suppliers
CPG companies that produce value-oriented products will have more markets than others. Improving the quality of the products or making them available for lower price points will offer more value to the consumers. Both these methods have a positive impact on businesses as well. A leading global confectioner has introduced products at low price points in India to attract more consumers to the chocolate category.
4.Age of Digital Consumers: The rise of digital consumers is growing exponentially. In the coming years, a majority chunk of the business will be digital. CPG companies must find out some of the best answers to the questions to figure out how to win the digital world:
- How to build a successful business through online retail channels?
- How to build brands and categories in a socially networked world
- How to exploit technology-driven opportunities to understand consumers more deeply and connect with them more often?
5.Digital Branding: Digital technology will have a deep impact on brand communication. Consumers are more reliant than ever on referrals: 70 per cent looks to user reviews to inform their purchase decisions. Moreover, digital marketing is no longer just about one-way communications to consumers.
6.Understanding Consumers Better than Before: The impact of demographic shifts on consumption patterns: While ageing represents one major global demographic trend for which CPG companies must prepare to tackle it. CPG companies will need to find innovative ways to meet the needs of ageing consumers. For example, Unilever’s Dove recently launched Pro-Age, a line of deodorants, hair care products, and skin care products, to target female consumers of the age group between 54 and 63. A major packaged food manufacturer is targeting seniors with its latest brand that offers nutritionally balanced food in packaging that features easy-to-read, large fonts.
7.Supply Chain Volatility- the New Normal: For the most successful CPG companies, globalized trading has represented an opportunity to expand into new markets and consolidate supply and production. Globalization led specialization has also triggered a sharp increase in the global volatility of commodity input prices. Global Supply chains that had created value in the past can experience higher volatility in the future.
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