Five Big CPG Trends We’ll See in the Next Five Years

Emerging Brands Challenge the Stalwarts

While disruption is often the goal with emerging brands, many are satisfied with simply carving a niche for themselves. This could be the difference between Dollar Shave Club, which massively affected Gillette’s share of the razor market and completely changed the CPG game, and Sunbasket, which carved its own niche out of a whole disruptive industry — the meal kit delivery service — and targets healthy eating enthusiasts among all buyers who subscribe to meal kit deliveries.

Increased Private Labeling

One way emerging brands are expediting their entry into the consumer consciousness is through increased private labeling. Private labeling is the process of selecting products that have already been developed and then adding your brand to the mix. Grocery brands already do this, such as Walmart’s Great Value brand or Target’s Archer Farms.

DTC

Direct-to-consumer (DTC) sales reached $17.75 billion in 2020, showing 20% growth over the previous year. An increase in online shopping during the pandemic is a significant factor in this growth, but don’t expect those numbers to decline any time soon.

Omni-Channel Shopping

Emerging, niche and white label brands will have yet another edge over legacy CPG manufacturers in the coming years, with their ability to offer omni-channel experiences that deliver a consistent, personalized experience for shoppers across all channels and devices.

Sustainable Products and Packaging

Sustainable products will fetch $150 billion this year in the United States, and that dollar amount is expected to grow each year. In fact, 11% of consumers say they would switch brands to protect the environment, 5% say they’d switch due to climate change, and another 5% would seek new products if they felt the brand wasn’t transparent enough.

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