navigating CPG's unwavering growth in 2024

Four years after the onset of the Covid-19 pandemic, the consumer packaged goods (CPG) industry continues to stand strong. In 2020, Americans ransacked store aisles, causing a significant disruption in the supply and demand dynamics of the industry and contributing to the nation’s inflation. Inflationary pressures have since subsided, paving the way for yet another year of vigorous sales and sustained growth in CPG.

CPG’s Digital Expansion

In 2022, CPG e-commerce sales witnessed an unprecedented surge, setting records with a remarkable 30% increase as Americans comfortably restocked essential items, including food, personal care, and cosmetic products from the convenience of their homes. Building on this momentum, the following year saw another round of record-breaking numbers with American consumers spending nearly $3.8 trillion on CPG items monthly, roughly $1.3 trillion of that spent on food.

In anticipation of the continued trend, direct-to-consumer brands are strategically focusing on amplifying their digital presence in 2024, aiming to streamline transactions and enhance the overall consumer experience. According to eMarketer, an impressive 23.9% of CPG e-commerce sales are projected to be driven by the food and beverage sector, followed by personal care and beauty products at 17%.

In today’s culture, Americans have grown accustomed to the ease of instant gratification, a trend propelled by e-commerce giants like Amazon. The expectation of swift deliveries and the desire to avoid spending hours grocery shopping or looking for personal care products, have become ingrained in the way consumers approach shopping and acquiring goods. In addition, the exclusive online deals is another rationale for Americans when looking for items that will eventually need restocking.

Sustainability Is In

Brands are placing an emphasis on incorporating eco-friendly substitutions to create sustainably packaged products, a priority for Americans. Recent insights from Mintel reveal that nearly half (42%) of Gen Z and Millennial consumers prioritize environmentally friendly packaging over the price of the item.

In Q4 of 2022, a Bank of America survey disclosed that 27% of Americans opt for bulk purchase as a savvy financial strategy, concurrently contributing to a more eco-conscious lifestyle and minimizing their carbon footprint. To align with consumers' preferences, it becomes imperative for merchants to focus on sustainability in the packaging of goods, spanning from food and household items to cosmetics.

E-Commerce by Causal IQ

In this pivotal time, now is the chance for brands to authentically show and reinforce to consumers their unwavering commitment to customer loyalty and sustainability. Allocating resources for brand advertising gives businesses the opportunity to create and build on a robust connection that fuels long-lasting growth and achievement.

By harnessing the power of Causal IQ's advanced technology, brands can not only engage with consumers in real-time but also unlock the potential to maximize their ROI. This innovative platform facilitates the creation of meaningful connections with consumers through digital advertising that is not only measurable but also driven by insightful data. The ability to tailor campaigns based on real-time insights ensures that brands can adapt and resonate with their target audience, ultimately fostering stronger brand commitment. In a dynamic market environment, Causal IQ's technology empowers brands to stay ahead, making each interaction with consumers a strategic opportunity to build lasting relationships and enhance overall brand impact.