The consumer packaged goods (CPG) industry was once stable, complacent, and extremely difficult to break into. But with the rise of direct-to-consumer (DTC) models to the impact of sustainability and social media, rising CPG brands have a unique opportunity to reach more consumers than ever before. In this guide, we’ll explore the biggest CPG industry trends for this year and beyond, uncovering the forces driving innovation, consumer preferences, and market dynamics of this evolving landscape.

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9 Biggest CPG Trends

Here are some of the biggest emerging trends in the CPG industry right now.

1. Direct-to-Consumer Models on the Rise

The direct-to-consumer model isn’t a new strategy, though more and more brands are pivoting to or adding this model in to meet customer demand. Consumers are increasingly interested in buying directly from brands that they like and enjoy, even CPG brands. But why?

DTC brands often offer easy online purchasing experiences, allowing consumers to buy products from the comfort of their own homes, often with fast shipping options. Some DTC brands offer niche or specialized products that may not be readily available through traditional retail channels. By cutting out the middleman, consumers find that they can often get better deals than they would in a retail store.

Glossier is a great example of how a DTC model for a consumer packaged good brand can be wildly successful. With Glossier, consumers don’t have to visit the makeup counters of department stores to find high-quality skincare–they can simply order what they need directly from the Glossier website. In just ten years after its founding, Glossier is a billion-dollar cosmetics company that sells almost exclusively online and directly to consumers.

2. Disruptive Startup CPG Brands

Perhaps emboldened by success stories like Glossier’s, other startup CPG brands have begun to pop up over the last decade to disrupt the status quo. Reigning CPG products can no longer get by on their longevity and reputation as new brands emerge with better products, faster shipping times, and perks like rewards or bundle deals.

Brands like Harry’s and Dollar Shave Club are some of the most well-known CPG industry disruptors in recent years. Both these brands launched to provide affordable men's grooming products with the simple click of a mouse. Consumers received these brands with open arms, relieved they no longer had to rely on brands like Gillette for their shaving needs. This warm reception was pivotal for Harry’s and Dollar Shave Club, who knocked down Gillette’s market share from 70% to 50% virtually overnight.

The key for startups to experience similar success is to identify the most complacent CPG industries that aren’t adapting to the changing consumer landscape. Existing brands who exist in these spaces that don’t want to be displaced from the top should start innovating by employing some of the trends on this list.

Learn more: From Startup to Success: 16 Tools for Small Business Growth

3. Implementation of Omnicommerce Strategies

Thanks to delivery services like UberEats, GrubHub, and PostMates, consumers have grown accustomed to getting what they need right when they need it. Brands need to adapt to this level of demand by employing an omnicommerce strategy for their consumer packaged goods. This means allowing customers to buy products through owned channels, even if that product isn’t coming directly from the business itself–whether that’s through a delivery service, an online retailer, at a store around the corner, or at their favorite restaurant.

Product locators are fantastic omnicommerce tools to incorporate on your website. Product locators help your customers find your product near them, identify opportunity locations for your product, and can aggregate data to help you make informed business decisions. 

4. Social Media Stores

Consumers spend an average of 2.5 hours on social media per day, with Instagram and TikTok some of the most common platforms users visit. It’s no wonder then that these platforms have incorporated online shopping directly into their apps and that brands are jumping to be featured. Though platforms take their fair share of the profits, the cost-per-click of advertisements is much more competitive compared to Amazon and Google. CPG brands are more likely to experience better margins on social media shops for this reason. 

A strong content strategy is important when relying on social media sales. Thankfully, TikTok and Instagram are perfectly suited for gathering user-generated content. Paired with influencer marketing, brands can see a significant increase in sales and experience a broader reach than ever before, even bridging the gap to Gen Z shoppers. 

5. Private Label Brands Emerge

This shift in the market landscape has led to an influx of private label products from retail giants, aiming to compete with established CPG brands in the DTC space. Rather than offering generic store-brand alternatives, these companies are investing in developing high-quality private label products to rival well-known brands. 

By leveraging their extensive resources and distribution networks, retail giants can now offer these private label items directly to consumers through online platforms, capitalizing on the growing demand for convenient and personalized shopping experiences. As a result, consumers are presented with a wider array of options, ranging from traditional name-brand products to competitively priced private label alternatives, all conveniently accessible through DTC channels. 

6. Better Delivery Options

Amazon has long set the standard for fast shipping, establishing customer expectations for how long a package should take to reach their front doors. WalMart is one of many companies rising to the challenge, launching WalMart+ in 2021 to provide better shipping times and lower prices to its customers. But better delivery options aren’t limited only to big box stores; smaller businesses and startups also have the ability to give customers fast delivery options through drop-shippers, distributors, and fulfillment companies in a way that’s still cost-effective and profitable.

7. Micro and Nano Influencer Marketing

Micro and nano influencers play a pivotal role in the marketing and sales of consumer packaged goods products, particularly in the age of social media. With smaller yet highly engaged audiences, these influencers often possess a deeper level of trust and authenticity among their followers compared to macro influencers or celebrities. 

By partnering with micro and nano influencers who have niche interests or expertise relevant to specific CPG products, brands can effectively reach target audiences in a more personalized and relatable manner. These influencers are adept at creating genuine, user-generated content that resonates with their followers, showcasing how CPG products fit seamlessly into their everyday lives. Furthermore, their smaller follower counts allow for more meaningful interactions and conversations, fostering a sense of community and trust around the endorsed products. As a result, micro and nano influencers can drive higher levels of engagement, brand awareness, and, ultimately, sales for CPG brands by leveraging their authentic connections with their dedicated followers.

8. Subscription Options

Consumer packaged goods are ideal contenders for subscription-based direct-to-consumer models due to their consumable nature and frequent usage. Rather than needing to remember to include these items on their weekly shopping lists, consumers can opt for the convenience of subscribing directly from the company, guaranteeing regular deliveries without the hassle of constantly restocking. This subscription-based approach eliminates the risk of running out of essential products, providing consumers with a seamless and consistent supply. 

Keeping up with your cat’s litter supply is no one’s favorite task. That’s why Tuft + Paw, an online pet supply brand, offers their Really Great Cat Litter on a subscription basis, helping their customers save both time and money on cat litter every month. Cat owners no longer have to worry about how much litter they have on hand because they know a new supply is already on the way. Of course, brands need the products to back up the convenience; the Tuft + Paw litter is low-tracking, dust-free, and flushable, three incredible features that pet owners love.

Learn more: 5 CPG Marketing Strategies to Increase Brand Awareness →

9. Clear Brand Values

According to Insider Intelligence, values are a strong contender for modern consumers as they consider a purchase, second only to price. Brands that are committed to sustainability, charity, and transparent business practices can often contribute growth to the adherence to their values. MABLE is an excellent example of a brand with a cause. They create sustainable personal care in the form of bamboo toothbrushes, compostable floss, and recyclable cotton swabs to help combat the influx of these mass-produced items in landfills across the world. In this case, the value is also the mission of the MABLE brand.

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Final Thoughts on CPG Industry Trends

CPG brands must remain agile and innovative to thrive in this competitive landscape. By staying attuned to consumer preferences, embracing new trends, and prioritizing sustainability and transparency, CPG companies can position themselves for success in the years ahead. As we look to the future, one thing is certain: the CPG industry will continue to be shaped by dynamic trends and shifts in consumer behavior, presenting both challenges and opportunities for those willing to adapt and innovate.

Enable your customers to find your CPG products more easily with the help of the Grappos Product Locator. With the Grappos Product Locator, your customers can find your products in all their favorite stores near them, taking the guesswork out of running errands. Our Product Locator serves you with its built-in tracking and reporting system, allowing you to plan your next business moves accordingly.

Request a demo from Grappos today →

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