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The consumer packaged goods (CPG) market size is forecast to increase by USD 1,280.8 billion at a CAGR of 4.49% between 2023 and 2028. The market is experiencing significant growth, driven by several key trends. One of the most notable trends is the increasing sales of CPG products through e-commerce channels. With the rise of online shopping, consumers have greater convenience and access to a wider range of products, leading to increased sales for CPG companies. Another trend is the emergence of direct-to-consumer (D2C) brands, which are disrupting traditional CPG market structures by cutting out intermediaries and offering personalized products and services directly to consumers. Additionally, global inflation and supply chain disruptions pose challenges for CPG companies, requiring them to adapt to changing market conditions and find innovative solutions to maintain profitability and meet consumer demand.
Overall, the CPG market is evolving rapidly, with e-commerce, D2C brands, and inflationary pressures shaping its future growth trajectory.
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The market in emerging nations is experiencing significant growth due to rising disposable income and increasing urbanization. With per capita income on the rise, there is a growing demand for clothes and other CPG items. However, challenges such as pollution and incorrect labeling pose threats to the industry. The future prospects of the CPG market are promising, with volatile commodity prices and regulatory challenges being key factors that companies need to navigate. Rising competition from both local and international players, as well as the emergence of private label brands, add to the complexity of the market. E-commerce and online shopping are also transforming the way CPG products are bought and sold, with personalized fragrances and skincare products being popular categories.
As the market becomes more competitive and complex, companies will need to innovate and adapt to meet the changing needs and preferences of consumers.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The food and beverages segment is estimated to witness significant growth during the forecast period. The market encompasses a wide range of household commodities, including food and beverages, clothes, and household goods. In emerging nations, the increasing urbanization and rising disposable income have led to a wave in demand for these products. Per capita income growth in these countries has fueled the consumption of packaged foods and beverages, offering convenience and longer shelf lives for busy consumers. Sustainability is a growing concern, with consumers seeking packaging solutions that minimize waste and reduce pollution. Incorrect labeling and food safety issues have become critical challenges, particularly in the food and beverage sector. Looking ahead, the future prospects of the CPG market are promising, with the global population projected to reach 9.7 billion by 2050. Rising competition from private label brands and e-commerce platforms, as well as price sensitivity and retail consolidation, pose challenges. However, the trend towards personalized fragrances, skincare products, and online shopping is expected to drive growth. Supply chain disruptions and commodity price volatility, coupled with economic uncertainty, present risks that companies must navigate to remain competitive.
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The food and beverages segment accounted for USD 1,581.31 billion in 2018 and showed a gradual increase during the forecast period.
North America is estimated to contribute 35% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The market, encompassing household commodities, clothes, food and beverages, personal care, and household goods, is witnessing significant expansion in the emerging nations, particularly in North America. Factors such as increasing urbanization, rising per capita income, and changing consumer preferences are fueling this growth. The demand for convenience-oriented products, including packaged foods and beverages, is escalating due to the hectic lifestyles and the emphasis on saving time. Furthermore, the health-conscious consumer base is driving the wave in demand for organic and healthy CPG products. The aging population in North America is also seeking convenient and healthy food options. However, challenges such as pollution, incorrect labeling, and rising competition from private label brands, e-commerce, and sustainability concerns are posing significant threats to market growth.
The global population's increasing demand for personalized fragrances and skincare products adds to the market's complexity. Tight competition, price sensitivity, retail consolidation, supply chain disruptions, commodity price volatility, and economic uncertainty are some of the other factors influencing the market dynamics.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The increasing sales of CPG products from e-commerce is the key driver of the market. The market encompasses a broad range of household commodities, including food and beverages, clothes, personal care, and household goods. With the rising disposable income and increasing urbanization in emerging nations, the per capita consumption of these commodities is on the rise. However, challenges such as pollution, incorrect labeling, and sustainability concerns are becoming increasingly important to consumers. Packaging solutions play a crucial role in addressing these challenges, with eco-friendly and biodegradable options gaining popularity. The future prospects of the CPG market are promising, driven by the global population's increasing demand for convenience and personalized products. E-commerce platforms are revolutionizing the way consumers shop for CPG products, eliminating geographical limitations and offering a wider variety of brands and products.
E-commerce is expected to contribute significantly to global retail sales, with approximately 40%-42% of sales projected by 2027. This trend facilitates direct-to-consumer (DTC) sales models, enabling vendors to establish closer relationships with their customers and collect real-time market insights. Vendors can leverage targeted advertising and promotions to reach specific customer segments and drive brand awareness. However, the CPG market faces tight competition and price sensitivity, with private label brands and retail consolidation intensifying the competition. Supply chain disruptions and commodity price volatility can also impact market stability, making economic uncertainty a significant challenge. Despite these challenges, the future of the CPG market is bright, with opportunities in personalized fragrances, skincare products, and other niche categories.
The rise of direct-to-consumer (D2C) brands is the upcoming trend in the market. The market, encompassing household commodities, food and beverages, clothes, and personal care products, is experiencing significant shifts as a result of emerging trends. Household income growth in developing nations, rising urbanization, and increasing disposable income are driving demand for these essential items. However, challenges such as pollution, incorrect labeling, and supply chain disruptions persist. Brand competition is intensifying, with private label brands gaining popularity due to their affordability. Sustainability and e-commerce are also major trends, with consumers increasingly seeking out personalized fragrances, skincare products, and other offerings tailored to their preferences. In this tight competition, price sensitivity remains a critical factor.
Moreover, economic uncertainty and commodity price volatility pose challenges for CPG companies. Direct-to-consumer (D2C) brands are disrupting traditional supply chains by cutting out intermediaries and engaging consumers directly through digital platforms. This direct relationship fosters a better understanding of consumer preferences, enabling more personalized marketing strategies and product offerings. Data generated from these interactions can provide valuable insights into consumer behavior and trends, giving D2C brands a competitive edge.
Global inflation and supply chain disruption are key challenges affecting the market growth. The market, comprising household commodities such as food and beverages, clothes, and household goods, as well as personal care products, is experiencing significant challenges due to supply chain disruptions and inflationary pressures. Emerging nations, with their rising disposable income and increasing urbanization, present lucrative opportunities for growth. However, these markets also face issues like pollution, incorrect labeling, and tight competition from both local and international players. Sustainability, online shopping, personalized fragrances, and skincare products are future prospects for the industry. However, price sensitivity, retail consolidation, and commodity price volatility pose significant challenges. Geopolitical tensions, such as the COVID-19 pandemic and the Russia-Ukraine war, have caused supply chain disruptions, leading to delays, shortages, and increased logistics costs.
These issues shrink profit margins, negatively impacting long-term growth strategies and innovation. Inflationary pressures, driven by rising commodity prices, transportation costs, and labor expenses, further complicate matters. The CPG sector, reliant on efficient and timely supply chains, is particularly vulnerable to these disruptions.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
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Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market, encompassing household commodities, food and beverages, clothes, and personal care products, is experiencing significant growth in emerging nations due to rising disposable income and increasing urbanization. Household goods, including packaging solutions, are in high demand as the global population continues to grow. However, challenges such as pollution and incorrect labeling pose risks to the industry. The future prospects of the CPG market are promising, with the food and beverages sector expected to dominate due to changing consumer preferences. Sustainability is a key trend, with e-commerce platforms and online shopping gaining popularity for their convenience and personalized offerings, such as personalized fragrances and skincare products.
However, the market faces tight competition from private label brands and rising price sensitivity among consumers. Retail consolidation and supply chain disruptions are also challenges, exacerbated by commodity price volatility and economic uncertainty. Emerging nations, with their large populations and increasing per capita income, present significant opportunities for growth in the CPG market. However, companies must navigate these challenges to remain competitive and meet evolving consumer demands.
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Market Scope |
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Report Coverage |
Details |
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Page number |
171 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 4.49% |
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Market growth 2024-2028 |
USD 1.280.8 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
3.67 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 35% |
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Key countries |
US, China, Japan, Germany, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Anheuser Busch InBev SA NV, Campbell Soup Co., Carlsberg Breweries AS, Colgate Palmolive Co., Conagra Brands Inc., Diageo Plc, Heineken NV, Kellanova, Keurig Dr Pepper Inc., KWEICHOW MOUTAI Co. Ltd., LOreal SA, Mars Inc., Nestle SA, PepsiCo Inc., The Clorox Co., The Coca Cola Co., The Hershey Co., The Kraft Heinz Co., The Procter and Gamble Co., and Unilever PLC |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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