The Top 7 CPG Industry Trends for 2024 and Beyond

The CPG industry trends are becoming increasingly exciting and dynamic as the food and beverage sector undergoes significant change. With shifting consumer preferences, CPG companies navigate a fast-evolving market. Sales of plant-based foods are booming, valued at $11.3 billion in 2023 and expected to hit $25.4 billion by 2027. This trend is just one example of how the CPG landscape is changing, and businesses that stay ahead will likely succeed.

This article will explore the top 7 CPG industry trends for 2024 and beyond, giving businesses an insight into what to expect and how they can adapt.

Key Trends in the CPG Industry

The CPG industry is brimming with trends that hold significant implications for CPG marketing strategies. Here are some of the most noteworthy developments:

1. The rise of plant-based alternatives

Consumers are increasingly seeking plant-based options across all categories, from dairy substitutes like milk and cheese to meatless burgers and sausages. This trend is driven by health concerns, environmental awareness, and ethical considerations.

2. Direct-to-consumer (DTC) boom

One main trend in the CPG industry trends is the transformative impact of Direct-to-Consumer (DTC) brands. These brands are reshaping the retail landscape by sidestepping conventional retail avenues to sell directly to consumers via online platforms. This forward-thinking strategy grants these brands enhanced control over their brand image, the ability to provide personalized shopping experiences, and a more direct line of engagement with their customers.

3. Omnichannel shopping

Consumers expect a seamless shopping experience across all touchpoints, whether online, in-store, or via mobile app. CPG companies are creating unified omnichannel experiences that integrate loyalty programs and offer convenient options like click-and-collect and other e-commerce platforms.

4. Focus on transparency and sustainability

Now more than ever, consumers show a keen interest in understanding the origin and composition of their food products. They gravitate towards brands that not only offer transparency through clear labeling but also commit to ethical sourcing and sustainability practices. This shift highlights the growing importance of CPG sustainability, as it becomes a critical factor influencing consumer choices and preferences.

5. Personalized nutrition

Driven by fast advancements in technology and significant improvements in data analytics, personalized nutrition is gaining popularity among health-conscious consumers. Consumer Packaged Goods (CPG) companies lead this trend, using detailed data and advanced algorithms to create products that match individual dietary needs and preferences. This strategy enables a more personalized eating experience and promotes better health outcomes by meeting each consumer’s specific nutritional requirements.

6. Functional foods and beverages

Consumers are increasingly drawn to products that offer health benefits beyond basic nutrition. This creates opportunities for CPG companies to develop functional foods and beverages that address specific health concerns, like stress reduction and improved gut health.

7. Keeping up with adaptogens

Adaptogens are natural ingredients believed to help the body adapt to stress. They are being incorporated into a wide range of CPG products, from beverages to powders, catering to consumers seeking natural solutions for managing stress and anxiety.

The Challenges Behind Utilizing CPG Industry Trends

While these trends present exciting opportunities, CPG companies face challenges in leveraging them effectively:

• Data Overload: The abundance of consumer data can be overwhelming. Companies need sophisticated analytics tools like those found on the Tastewise platform to interpret data and derive actionable insights.
• Rapidly Evolving Trends: Keeping pace with the ever-changing consumer landscape can be difficult. CPG companies need to be agile and adaptable to stay ahead of the curve.
• Omnichannel Integration: Creating a seamless omnichannel experience requires significant investment in technology and infrastructure.
• Personalization at Scale: Personalization efforts can be resource-intensive, and scaling them to reach a diverse consumer base efficiently is a challenge.
• Sustainability Concerns: Balancing consumer demand for affordability with sustainable practices can be complex. Sourcing ethically and implementing eco-friendly packaging solutions might come at a higher cost.

What is the Future Trend in the CPG Industry?

Looking beyond 2026, we can expect the CPG industry to continue its trajectory toward personalization, data-driven decision-making, and a strong focus on health and wellness. 

Technological advancements like artificial intelligence and machine learning will play an increasingly significant role in developing targeted marketing strategies and creating personalized consumer experiences. 

Additionally, the emphasis on sustainability is likely to intensify, with consumers demanding even greater transparency and eco-friendly practices from CPG companies.

FAQs

1. How are CPG companies using artificial intelligence (AI) to cater to changing consumer preferences?

AI is being used in various ways to personalize the CPG experience. For instance, AI algorithms can analyze purchase history and browsing behavior to recommend products and recipes to individual consumers. Additionally, AI-powered chatbots can provide personalized customer service and answer product-related queries in real time.

2. What is the impact of rising inflation on CPG trends?

Inflation is putting pressure on household budgets, causing consumers to be more price-conscious. We can expect to see a rise in private-label brands and discount retailers as consumers seek value for money.

Additionally, CPG companies may look for ways to optimize packaging and reduce product size to maintain affordability without compromising quality.

3. How are CPG companies adapting to the growing popularity of ethnic cuisines?

The popularity of ethnic cuisines is on the rise, driven by globalization and increased cultural exchange. CPG companies are responding by expanding their product offerings to include ingredients and flavors from diverse culinary traditions. We can also expect to see more innovation in ethnic convenience foods that cater to busy lifestyles.

4. What role is technology playing in the fight against food waste?

Food waste is a significant global problem. CPG companies are leveraging technology to develop solutions that extend shelf life, improve supply chain efficiency, and connect consumers with surplus food. This could involve the use of smart packaging that monitors freshness or partnerships with food rescue apps to redistribute nearing-expiry items.

5. How are CPG companies addressing the growing interest in lab-grown meat?

Lab-grown meat, also known as cultivated meat, is a nascent technology with the potential to revolutionize the food industry.

While still in its early stages, CPG companies are exploring partnerships with lab-grown meat producers to bring these products to market. This trend could significantly impact the future of protein consumption within the CPG landscape.

Stay Ahead of the Curve With Tastewise

The CPG industry is a dynamic and ever-evolving landscape. Ignoring trends can leave companies behind. Here at Tastewise, we are a leading provider of food intelligence, offering CPG marketers the tools and insights they need to make data-driven decisions and capitalize on emerging trends.

Our platform provides comprehensive consumer and market research, helping brands understand what consumers are buying, eating, and wanting. Don’t be blindsided by the changing market – stay ahead of the curve with Tastewise as your trusted partner in navigating the exciting future of CPG.