The consumer packaged goods (CPG) market size is projected to grow by $1.28 trillion between 2024 and 2028. Growing sales of CPG products from e-commerce will strengthen the market, Technavio

NEW YORK, May 23, 2024 /PRNewswire/ — Global consumer packaged goods (CPG) market. The size is estimated to increase $1.28 trillion According to Technavio in the years 2024–2028. The market is estimated to grow at a CAGR of 4.49% during the forecast period.

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Market driver

The consumer packaged goods (CPG) market is undergoing a significant transformation with the emergence of direct-to-consumer (D2C) brands. By eliminating intermediaries such as retailers and wholesalers, D2C brands establish direct connections with consumers, enabling control over products and prices. Digital platforms facilitate these interactions by providing insight into consumer preferences for personalized marketing and offers.

Valuable data is generated, informing brands about behaviors, trends and preferences across homewares, clothing, packaging solutions, food and beverage, personal care and housewares. Amid increasing urbanization, rising disposable incomes and a global population, D2C brands face competition, price sensitivity, retail consolidation and supply chain disruptions. Sustainability and e-commerce are key trends shaping the future of CPG.

Market challenges

• The consumer packaged goods (CPG) market currently faces many challenges, including supply chain disruptions caused by global events such as the COVID-19 pandemic and Russia–Ukraine war. These disruptions lead to delays, shortages and increased logistics costs, putting pressure on profit margins and hindering long-term growth strategies and innovation. Inflationary pressures, driven by rising commodity prices, transportation costs and labor costs, further complicate the situation.
• The CPG sector, which includes household products, apparel, food and beverage, personal care and household products, is particularly vulnerable to these issues. Emerging countries, with rising disposable incomes, increasing urbanization and global population growth, present both opportunities and challenges for CPG companies. Sustainability, e-commerce, personalized fragrances, skin care products and fierce competition are also significant trends shaping the market.

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Segment overview

1. Product

• 1.1 Food and drink
• 1.2 Personal hygiene and cosmetics
• 1.3 Household items
• 1.4 Pharmaceuticals
• 1.5 Other

Distribution channel

Geography

• 3.1 North America
• 3.2 Europe
• 3.3 Asia and the Pacific
• 3.4 South America
• 3.5 Near East AND Africa

1.1 Food and drinks- In the consumer packaged goods (CPG) market, the trend toward convenience and sustainability continues to shape product segmentation. Private labels, powered by e-commerce platforms, meet the needs of time-pressed consumers looking for affordable, ready-to-eat food and household options. Sustainability remains a key issue as consumers increasingly choose packaged foods and beverages with longer shelf lives, reducing food waste at both the consumer and retail level.

Online shopping, fueled by personalized fragrances and skincare products, is further intensifying competition in the market. Fierce competition, price sensitivity and retail consolidation create challenges, while supply chain disruptions and commodity price volatility increase economic uncertainty. Household products, including clothing and packaging, are also following these trends in emerging countries, where rising disposable incomes, growing urbanization and global population are driving demand. Future prospects include the growing importance of sustainability, increasing competition and the need for accurate labeling to mitigate issues such as mislabeling and contamination concerns.

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Research analysis

In the consumer packaged goods (CPG) market in emerging countries, rising per capita income and increasing urbanization have led to significant increases in disposable income. This trend has resulted in an increase in demand for various CPG products such as clothing, skin care products and personalized fragrances. However, challenges remain in the form of volatile commodity prices, regulatory issues and increasing competition.

Mislabeling and contamination concerns are also urgent issues that need to be addressed. Private labels have gained popularity for affordability and quality, while e-commerce and online shopping have revolutionized the way consumers buy CPG products. Despite these challenges, the future prospects for the CPG market in emerging countries remain promising.

Market research review

The consumer packaged goods (CPG) market encompasses a wide range of products used by consumers for personal care, food, beverage and household needs. These goods are usually mass produced, readily available and inexpensive. The CPG industry is subject to various trends and factors, such as changing consumer preferences, emerging technologies and regulatory requirements. Sustainability and environmental friendliness are increasingly important issues for consumers, leading to the development of organic and natural product offerings.

Regional differences and demographic changes also influence the market. Competition in the CPG sector is fierce, with many brands fighting for market share. The industry is characterized by a fast pace that requires companies to be flexible and adapt to changing consumer demands. The use of technologies such as automation and data analysis is essential to optimize supply chain operations and improve the customer experience. The CPG market is a dynamic and constantly evolving landscape, offering opportunities for innovation and growth.

Contents:

1 Summary
2 Market landscape
3 Market size
4 Historical market size
5 Five Forces Analysis
6 Market segmentation

• Product
• Food and drinks
• Personal Care And Cosmetics
• Household supplies
• Pharmaceuticals
• Others
• Distribution channel
• Geography
• North America
• Europe
• APAC
• South America
• Middle East and Africa

7 Customer landscape
8 Geographic landscape
9 Factors, challenges and trends
10 Company landscape
11 Company analysis
12 Annex

About Technavio

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SOURCE Technavio