2024 CPG TRENDS REPORT: WHAT’S THE FUTURE OF CONSUMER PACKAGED GOODS?

The consumer packaged goods (CPG) space is experiencing major shifts as brands respond to changing consumer behaviors and preferences. Core trends shaping the future of CPG include a focus on health and wellness, sustainability, premiumization, convenience, and digitalization.

Health and wellness is arguably the biggest trend, with consumers increasingly seeking products that support diet, lifestyle and values. More packaged foods and beverages now feature organic, natural, low sugar, plant-based or free-from ingredients. Functional foods provide added health benefits while catering to issues like inflammation, gut health, and immunity. CPG brands are also expanding Better-For-You offerings in categories like snacks, dairy and processed foods. Transparent labeling and clean formulations give shoppers peace of mind.

Sustainability concerns are also driving buying decisions. Conscious consumers prefer brands that use ethically-sourced materials, practice responsible production, minimize waste, and take a lifecycle view. Top CPG companies are responding by setting renewable energy and carbon reduction goals. Strategies include recyclable and biodegradable packaging, upcycled ingredients, zero waste operations and even carbon neutral or regenerative commitments.

At the same time, more shoppers are indulging in quality premium products. Small batch, artisanal and imported CPG goods provide an elevated yet authentic experience. Premiumization has impacted categories like chocolate, alcohol, frozen desserts, baked goods and personal care. Consumers see intrinsic value in compelling brand stories, beautiful visuals and elevated shopping formats.

Despite their higher costs, premium self-care and indulgence products have gained appeal during difficult times. Moreover, COVID-19 drove demand for convenience – like meal kits, single serve offerings, pod formats and Direct-to-Consumer subscription models. While lockdowns fueled this trend, ongoing time constraints mean convenience will remain relevant.

Lastly, CPG brands have had to rapidly advance their digital, social media and eCommerce offerings to align with evolving media habits and reach online audiences effectively. The industry sees digital tools and channels not just as sales enablers but also as valuable consumer insights generators. Data analytics offer rich learnings into preferences and behavior.

In an uncertain world, these trends reflect consumer hopes and provide CPG companies inspiration on how to add value. Companies that genuinely address wellness, responsibility, premium experiences and convenience can deepen consumer appeal and relationships for the long term.