Consumer Packaged Goods (CPG) Market Size, Share, Growth, and Industry Analysis, By Type (Food and Beverage, Personal Care and Cosmetics, Household Supplies, Others), By Application (In-Stores, Online Sales), Regional Insights and Forecast to 2031

Updated On: 29 April 2024

CONSUMER PACKAGED GOODS (CPG) MARKET REPORT OVERVIEW

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The global consumer packaged goods (CPG) market size was USD 1938120 million in 2020 and the market is projected to touch USD 2382260 million by 2027, exhibiting a CAGR of 3.0% during the forecast period.

The Consumer Packaged Goods (CPG) market is a vast and dynamic sector that encompasses a wide range of everyday products that consumers use and replenish frequently. These goods include food and beverages, personal care items, household cleaning products, and other consumables. The CPG market is characterized by its fast-paced nature, with constantly changing consumer preferences, trends, and innovations. Manufacturers and retailers in this market must adapt quickly to stay competitive, and product differentiation, branding, and marketing play crucial roles in attracting consumers.

The CPG market has witnessed significant transformations in recent years, driven by factors such as e-commerce growth, digitalization, and the increasing focus on sustainability. Online retail platforms have become major players in the distribution of CPG, providing consumers with convenient ways to purchase goods. As consumers become more conscious of their choices, brands within the CPG market are under pressure to align with environmental and social values. This emphasis on sustainability, combined with the ongoing digital revolution, shapes the current landscape of the Consumer Packaged Goods market and presents opportunities and challenges for businesses in this sector.

COVID-19 Impact: Market Growth Restrained by Pandemic Due to Shifts In Consumer Behavior

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

The Consumer Packaged Goods (CPG) market, like many other industries, faced significant disruptions due to the COVID-19 pandemic. Lockdowns, supply chain interruptions, and shifts in consumer behavior had profound impacts. The initial phases saw a surge in demand for essential goods, particularly in the food and beverage and household supplies segments, leading to supply chain strains. As the pandemic progressed, the industry had to adapt to changing consumer preferences, including a notable rise in online shopping for CPG. The pandemic acted as a catalyst for digital transformation and pushed companies to reevaluate their strategies to stay resilient.

LATEST TRENDS

"Rise of Sustainable Packaging to Drive Market Growth"

One notable trend shaping the Consumer Packaged Goods (CPG) market is the increasing focus on sustainable packaging. Consumers are becoming more environmentally conscious, leading to a growing demand for products with eco-friendly packaging. This trend is driven by a desire to reduce plastic waste and lower the environmental footprint of CPG products. Companies are responding by incorporating recyclable materials, optimizing packaging designs, and emphasizing sustainability in their marketing strategies.

consumer packaged goods (CPG) MARKET SEGMENTATION

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• By Type

Based on type the global market can be categorized into Food and Beverage, Personal Care and Cosmetics, Household Supplies, Others.

Food and Beverage: The Food and Beverage segment remains a cornerstone of the CPG market. The pandemic highlighted the importance of a resilient and agile supply chain in this segment. Companies adapted by streamlining production processes and investing in technologies that enhance shelf life. Additionally, there has been a notable increase in demand for health-conscious and organic food products.

Personal Care and Cosmetics: In the Personal Care and Cosmetics segment, there is a growing emphasis on natural and organic ingredients. The pandemic influenced consumer choices, with a shift towards self-care and wellness. This segment has witnessed innovations in product formulations, packaging, and marketing strategies to align with changing consumer preferences.

Household Supplies: The Household Supplies segment experienced a surge in demand during the pandemic, driven by heightened awareness of hygiene and cleanliness. Disinfectants, cleaning agents, and other essential household items saw increased sales. Companies responded by diversifying product offerings and optimizing distribution channels.

Others: The 'Others' category encompasses various products not falling directly into the aforementioned segments. This diverse category includes pet care products, office supplies, and other miscellaneous consumer goods. Companies in this segment adapted to dynamic market conditions by enhancing e-commerce capabilities and focusing on consumer-centric innovations.

• By Application

Based on application the global market can be categorized into In-Stores, Online Sales.

In-Stores: In-store purchases continue to be a significant driver of the CPG market. Although online sales have seen a surge, in-store shopping remains a crucial aspect of consumer behavior. The in-store experience has evolved with an increased focus on hygiene and safety, with many retailers adopting digital solutions for contactless transactions and personalized shopping experiences.

Online Sales: The online sales channel experienced exponential growth during the pandemic, driven by lockdowns and social distancing measures. Consumers increasingly turned to e-commerce platforms for their CPG needs. Companies in this segment invested in robust online infrastructure, digital marketing, and last-mile delivery solutions to enhance the online shopping experience.

DRIVING FACTORS

"Adoption of Advanced Technologies to Boost the Market"

The adoption of advanced technologies, such as artificial intelligence and data analytics, is a key driver for the market, increasing the  consumer packaged goods market growth. Companies are leveraging these technologies to optimize supply chain management, enhance product development processes, and personalize marketing strategies. The data-driven approach allows for better decision-making, improved efficiency, and a more targeted response to consumer demands.

"Market Consolidation to Expand the Market"

Market consolidation and strategic partnerships are playing a pivotal role in increasing the consumer packaged goods market share in the CPG industry. Companies are engaging in mergers and acquisitions to expand their product portfolios, enter new markets, and achieve economies of scale. This trend is driven by the need for companies to strengthen their competitive positions in a rapidly evolving market.

RESTRAINING FACTORS

"Complexity of Supply Chain Management to Potentially Impede Market Growth"

One of the significant challenges faced by the CPG industry is the complexity of supply chain management. The pandemic exposed vulnerabilities in global supply chains, prompting companies to reevaluate and restructure their supply chain strategies. The challenge lies in creating resilient and agile supply chains capable of adapting to unforeseen disruptions while maintaining efficiency and sustainability.

CONSUMER PACKAGED GOODS (CPG) MARKET REGIONAL INSIGHTS

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The market is primarily segregated into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa

"North America’s Robust Economic Growth to Bolster the Market Growth "

The Consumer Packaged Goods market unfolds its unique dynamics across regions, and in North America, there's a conspicuous surge in market share. This momentum finds its impetus in a blend of robust economic growth, distinctive population demographics, and a regulatory environment conducive to business. Companies navigating within this region are seizing the opportunity to amplify their market footprint. Through astute strategic investments, pioneering product innovations, and finely tuned marketing strategies, businesses are leveraging the North American landscape to fortify and extend their influence within the CPG sector.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market through Innovation and Market Expansion"

Within the rapidly evolving landscape of Consumer Packaged Goods, key industry players are driving transformative changes, steering the sector toward unprecedented growth. These players demonstrate a profound understanding of consumer needs and market dynamics, enabling them to innovate and adapt swiftly. Their strategic acumen, combined with cutting-edge solutions, acts as a propellant for the industry, propelling it toward advancements in product development, supply chain management, and customer engagement. These influential players set the benchmark for excellence, inspiring the entire CPG market to embrace innovation and resilience.

List of Market Players Profiled

• Procter & Gamble (U.S.)
• Unilever (U.K.)
• L'Oreal SA (France)
• Colgate-Palmolive (U.S.)
• The Kraft Heinz Co. (U.S.)
• Kellogg Company (U.S.)
• Nestle (Switzerland)
• Pepsi (U.S.)
• Coca-Cola (U.S.)
• Carlsberg A/S (Denmark)
• Diageo (U.K.)
• Heineken NV (Netherlands)
• AB InBev (Belgium)
• Kweichow Moutai (China)
• Keurig Dr Pepper (U.S.)
• Campbell Soup Company (U.S.)

INDUSTRIAL DEVELOPMENT

2023: Subscription box revolution: The subscription box market is constantly evolving, with new players and innovative box offerings appearing regularly. It's difficult to pinpoint specific months without knowing the specific box or company in question. The future of subscription boxes is brimming with possibilities. Expect hyper-personalization, interactive experiences, and even boxes curated by artificial intelligence.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.