2024 CPG industry trends: What to expect and how to stay prepared
Highlights
- The Consumer Packaged Goods (CPG) industry is poised for transformative shifts in 2024, driven by changing consumer preferences and technological advancements.
- Key trends include the rising importance of Direct-to-Consumer (DTC) strategies, multi-channel marketing, personalized consumer experiences, and a focus on health and sustainability. Predictions for 2024 include hyper-personalization, augmented reality experiences, expanded DTC offerings, localized marketing, and sustainability becoming a standard.
- Brands embracing these trends are expected to thrive in this dynamic landscape, emphasizing customer-centric strategies, innovation, and experiential marketing.
The ‘Consumer Packaged Goods’ (CPG) industry has been transforming and witnessed significant changes in the past few months. This space has faced some obstacles in 2023 – inflation, supply chain disruptions, and changing consumer expectations. Amid these challenges, CPG is ever-evolving, and brands are constantly finding innovative ways to connect with consumers and stand out in the market. Changing consumer preferences, new technologies, and the growth of conscious consumers have created significant opportunities and challenges. It’s time to look at the CPG trends in 2024 that will impact the future. Let’s delve into the details.
As we enter 2024, the CPG sector is expected to see transformative shifts. Changing consumer preferences, market dynamics, and technological advancements will shape this sector. DTC trends (Direct-to-Consumer), personalized experiences, health-based products, and sustainability are some of the key trends to watch out for in 2024.
Here’s a look at the CPG trends in 2024 as they continue to influence consumer behavior.
Increased Direct-to-Consumer (DTC) importance
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Brands are leveraging online platforms to build direct relationships with consumers. They can personalize their marketing efforts using customer data and analytics. DTC’s approach allows the brands to increase engagement and relevance, leading to increased customer satisfaction. In 2024, DTC can be one of the fastest-growing CPG trends.
Multi-channel marketing
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CPG brands are adopting an omnichannel marketing approach. Other than traditional marketing channels, brands are also focusing on digital channels. Also, influencer marketing has seen a rise in recent times. CPG brands can use multi-channel marketing to increase their brand awareness and engagement.
Personalized consumer experiences
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Consumers want personalized experiences that resonate with their preferences and needs. CPG brands are using advanced data analytics and AI to gather insights about consumers and then provide them with tailored offerings. Customized packaging and personalized product recommendations are becoming crucial for planning marketing strategies – an unmissable CPG trend in 2024.
Health and wellness
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Consumers are increasingly becoming conscious about their health; as a result, CPG brands are developing products focusing on wellness, including plant-based alternatives, organic products, etc. In 2024, this segment is poised to see continued growth and innovations.
More emphasis on sustainability
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Consumers are becoming increasingly conscious about the environmental impact of the products they purchase, making it imperative for CPG brands to develop eco-friendly products and use sustainable packaging materials. Brands will continue to prioritize sustainability this year by incorporating recyclable materials, reducing plastic packaging, and adopting eco-friendly practices.
Tech-driven supply chains
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Changing consumer expectations and the growth of e-commerce have led CPG brands to undertake digital initiatives to make their supply chains efficient. Companies are automating their supply chain management and are relying on delivery management solutions for tracking and monitoring delivery.
Here’s a look at the key expectations in the CPG space that will be prevalent in 2024:
Hyper-personalization
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With technological advancements and the growth of data analytics and AI, brands are advancing beyond conventional marketing strategies. Hyper-personalization is the process of customizing products, marketing communications, and experiences to cater to the unique needs of consumers. In 2024, CPG will witness a big trend of brands advancing to the next level by providing customized product blends and/or packaging.
Augmented Reality (AR) experiences
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Augmented reality is revolutionizing consumer-product interactions and is offering more engaging shopping experiences. ‘Virtual try-on’ will allow consumers to test products virtually before purchasing them.
DTC expansion
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An increasing number of CPG brands are now selling their products directly to consumers. This approach facilitates a more tailored shopping experience and enhances data gathering. In 2024, it is anticipated that even well-established brands will broaden their DTC offerings, leveraging their relationships with consumers.
Localized marketing
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Companies are recognizing the significance of localizing their marketing strategies. This involves modifying products, communications, and campaigns to resonate with the local tastes and culture.
Sustainability as a standard
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Consumers are insisting on being offered eco-friendly products and the companies that fail to adapt may lose out. In 2024, with regards to trends in CPG, it is predicted companies will focus on sustainability and eco-friendliness to cater to consumers.
Experiential marketing
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Consumers are now looking for experiences, and not just products. Companies that can provide immersive experiences can create a deeper connection with the consumers. In 2024, it is expected that brands will emphasize devising engaging experiences for consumers.
CPG trends in 2024 look quite promising and exciting. Brands that can adjust to these trends and remain customer-centric will prosper in this dynamic landscape and continue to be relevant and competitive in this constantly evolving market. The CPG industry continues to grow at a rapid pace. Sustainability, customer-centric strategies, and innovation will be pivotal in the industry’s development.
Consumers’ quest for value will persist this year, and the emphasis on health will continue. AI will become increasingly important for predicting consumer behavior and connecting with the target consumers. Brands partnering with influencers will find this to be imperative for marketing their products.
Netscribes provides full-service market evaluation services are offered to international businesses in the CPG industry. We deliver consumer research services that include product testing, customer satisfaction, brand tracking, customer segmentation, and campaign effectiveness studies with in-depth actionable insights via a detailed report. In the last 20 years, we have helped Fortune 500 firms and high-potential startups use consumer data to improve their customer experiences and accelerate corporate growth. To know how we can help you get ahead of the CPG game by leveraging the most impactful trends in 2024, contact us.
