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Four consumer trends that the CPG industry cannot ignore in a post-COVID world



Despite the pandemic, small brands and other innovators have continued to develop disruptive offerings, new products and services and business models. These innovators looked beyond the immediate challenges and into the next normal. CPGs hoping to emerge stronger from the pandemic must do the same.


1) Consumers rule the world


Over the next decade, 90% of growth in the CPG industry will be captured by companies that successfully engage directly with consumers. Consumers are ubiquitously connected, crave individuality/personalisation, and are intolerant of complexity and latency.


Companies will need to up their game when it comes to personalisation and promotion if they want to stand out on an increasingly crowded digital shelf. As older consumers give way to millennials, the challenge intensifies.


Marketing must be tailored by audience, delivering relevant messages through relevant channels in a granular way. Channel strategies will be to be even more customised to each country and category trend, so companies will need to shape their strategies and guard against small competitive brands popping up in segments left unattended.


2) Subscription & convenience shopping is still growing


Consumers have embraced subscription service, simplifying the purchasing process. Allowing for a needed product to be delivered straight to their doorstep, without the added step of ordering it. Even established businesses such as Amazon offer subscriptions for products that consumers will need to order again such as cleaning products or toiletries. This subscription model drives repeat orders and even life-long customers.


Equally, more consumers are spending more on convenience to get what they need, often defined by contactless shopping, on-demand fulfilment, delivery app usage and a friction-free shopping experience.

CPG companies will need to consider their direct-to-consumer options.



3) Sustainability is a must


Companies not making strides in being more sustainable will fall behind in the industry. With a heavy concern from consumers on the state of our earth, it’s important that companies take sustainability seriously. Companies are building brands that are safer in their production methods and more actively participate in green initiatives. Trust and purpose matter more than ever.


For example, in a quest for more sustainable experiences, some food production will come closer to homes. Hyper-local horticulture for households will become viable, powered by technology and digitisation. Hyper-local networks enable local shops and restaurants to gain access to their local, digital customers.


4) Intuitive technology


Technology is enabling CPG organisations to bridge physical and digital experiences to achieve greater relevance and closer engagement with consumers. Companies are merging overall customer experience with smarter and more perceptible technologies to ensure consumers offer ‘zero resistance' in all the stages between discovery and fulfilment. Internet of Things (IoT) is increasingly becoming mainstream with the rise of 5G, thereby exponentially boosting connectivity and helping customers make informed decisions on their purchases.



For further information, including details on how to respond to these consumer trends and how connected planning can help, download our full whitepaper.


In our next blog, we’ll be sharing seven areas that CPG companies need to consider in order to leverage the emergent consumer trends, so keep an eye on our social channels where we’ll be publishing details.

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