CPG Trends 2025: Key Insights for the Future of Consumer Brands

Consumer needs are changing fast, and brands have to keep up with CPG trends. In recent years, the CPG industry has seen a huge shift in how people shop, what they eat, and the values behind their purchases.

CPG brands are under pressure. In a world where price sensitivity is rising and habits are shifting, even long-standing brand loyalties are no longer guaranteed. According to McKinsey’s ConsumerWise report, 40% of consumers in advanced markets have switched retail channels for better prices, and 38% of U.S. and Canadian shoppers tried new brands within just three months of the survey period. What’s more, 60% of consumers now believe private label products offer the same or better quality than national brands, driving major changes in how consumer packaged goods compete across the retail shelf

For Gen Z, loyalty is even more fragile, 62% say they would consider other options even if they already have a favorite brand, especially if price or quality is better elsewhere. So what’s next for the goods industry in 2025? CPG companies need agile strategies to navigate market shifts. Here’s what to track, what’s changing, and what CPG companies can do to stay competitive.

The evolving CPG industry: What’s driving change in 2025?

New behaviors, fresh values, and smarter tools are shaping the future of consumer packaged goods. There’s more demand for quick, healthy, and affordable options. At the same time, people want brands to reflect their ethics, things like sustainable sourcing, environmental awareness, and transparent labeling.

Many shoppers now increasingly expect brands to reflect personal values. The customer experience isn’t just about the product, it’s about how it’s made, what it stands for, and how it gets to the store. Brands that focus on diversifying sales channels and boosting transparency will win.

These changes are affecting every part of the CPG industry, from pricing and packaging to channel strategies and growth planning. Retail growth depends on connecting with consumers at the right moment.

Generative AI and predictive analytics are reshaping CPG

More CPG companies are using digital artificial intelligence to speed up decisions and reduce guesswork. Predictive tools help teams forecast consumer demand, test new products, and build faster go-to-market plans. CPG brands need a flexible approach to navigate 2025 challenges.

Consumer insights research is guiding product innovation every step of the way now. That’s where Tastewise fits in. With real-time food and beverage insights, our solutions give you a clearer view of what’s trending and where the next opportunities lie. AI reveals emerging ingredient trends and these data-driven insights help CPG brands navigate rapid market shifts.

A targeted approach to product innovation can cut time-to-market. Whether you’re tracking media mentions, CPG industry trends or testing packaged goods concepts, smart digital technology is now essential for every CPG brand. It’s not just about scale. It’s about personal speed and accuracy.

Conscious consumption goes mainstream

Sustainability isn’t niche anymore. Actually, sustainability is a core brand pillar. The market for plant-based goods continues to grow. Consumers want goods that are better for them and the planet. We’re seeing growing interest in personal care, plant-based items, low-impact packaging, and ethical sourcing.

This trend has expanded beyond every aisle, from pet care to snacks to cleaning products. to beauty and personal care items The impact of these changes isn’t limited to the consumer. They touch supply chains, services, and even business models.

Brands with a clear, honest mission are winning market share. Even traditional players are adapting, quickly. Innovation should go beyond products into packaging, distribution, financial services and consumer experience.

Trending ingredients and claims to watch

In 2025, consumers are more focused on health, flavor, and transparency. Expect more interest in immunity-boosting ingredients, gut health, protein-rich snacks, and natural goods.

Label claims like “no added sugar,” “gut-friendly,” and “sustainably sourced” are becoming standard. This is true across global markets, not just in North America. Brands are looking at global sourcing strategies for inspiration.

To stand out, brands should track both consumer behavior and local retail shopping habits. Flavor isn’t universal, but health and sustainability are growing signals across regions. Brands can capture opportunities by testing in regional markets before national rollout.

Private labels and challenger brands are gaining ground

In 2024, private-label sales jumped 8% in the US alone. Consumers want affordable options, but they’re also choosing goods companies that feel local, fresh, and values-driven. Private labels are reshaping retail competition and forcing established brands to adapt because they drive price competition.

Retail and revenue growth is being driven by private label innovation. Growth is seen across multiple categories, from snacks to beauty and personal care. What we’ve also seen is how smaller businesses are using innovation to compete with major brands.

That means big companies face more competition than ever. And these challengers aren’t just copying. They’re leading in innovation, niche marketing, and fast product launches. This is pushing legacy players to rethink how they launch, market, and connect.

Where the market is headed: What to prepare for

Let’s get real. The pressure is on. Rising costs, supply chain delays, changing consumer values, and tighter margins are the norm. Digital tools are giving brands faster ways to connect with consumers and launch products. Major industry events are showcasing emerging products and innovations. Events also give brands a chance to connect directly with consumers and are a great place to test product concepts. Remember that testing in regional market clusters can reveal trends early.

Here’s what industry leaders are focused on:

• Speed to shelf and faster innovation
  Smarter strategies driven by real-time insights
• Regional market testing before national rollout
• More flexible services and fulfillment options

CPG brands that act quickly and build with consumer input will win. This is the time to seize the opportunities and face industry challenges. And here’s one you have to listen to: AI is central to the digital transformation of the CPG sector. AI can detect ingredient trends months in advance. Predictive AI tools also help reduce waste which boosts brand loyalty because consumers now equate value with sustainability and quality.

Take it one step further, digital tools drive better decision-making. Because flexible solutions are needed for supply chain challenges, Ai for CPG innovation becomes a necessary part of fueling growth.

Top tips to stay ahead:

• Events, promotions, and campaigns should always be tailored for specific retail audiences.
• AI-powered solutions help brands identify trends before they become mainstream.
• Change your scaling strategy. For example, regional testing can reveal flavor preferences before a national launch.
• Trade events are key to spotting early retail trends.
• Research topics that include flavor trends, packaging claims, and consumer sentiment.
• Global trade events highlight innovations from every region.
• Innovation is the path to long-term growth.

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