Consumer Packaged Goods (CPG) Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, China, Japan, Germany, UK - Size and Forecast 2024-2028

Consumer Packaged Goods (CPG) Market Forecast 2024-2028

The consumer packaged goods (CPG) market size is projected to increase by USD 1,280.8 billion, at a CAGR of 4.49% between 2023 and 2028

Moreover, the market in North America is experiencing robust growth, fueled by various factors. Rising disposable incomes and evolving lifestyles in countries like the US and Canada have spurred increased consumer spending on convenience-oriented products, prevalent in the CPG sector. Moreover, the demand for healthy and organic CPG products has surged with growing health consciousness among consumers. Packaged foods and beverages are witnessing rapid growth due to the emphasis on convenience, offering readily available options for meals and snacks. The aging population in North America is driving demand for convenient and healthy food options, prompting CPG companies to respond with innovations like senior-friendly packaging and low-sodium alternatives. Anheuser Busch InBev SA NV stands out in the market, offering a diverse range of consumer packaged goods under popular brand names such as Budweiser, Busch, Michelob, Bud Light, and Natural Light, among others.

Market Overview

The market shows an accelerated CAGR during the forecast period.

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 Market Driver 

Increasing sales of CPG products from e-commerce is notably driving the market growth. E-commerce platforms offer consumers the convenience of shopping for CPG products from anywhere, anytime. This eliminates geographical limitations and allows access to a wider variety of brands and products compared with traditional brick-and-mortar stores. E-commerce is expected to contribute approximately 40%-42% of global retail sales by 2027, which was approximately 20% in 2017. E-commerce facilitates direct-to-consumer (DTC) sales models, enabling vendors in the market in focus to establish a closer relationship with their customers. Emerging nations are experiencing a surge in demand for household commodities, clothes, and personal care and cosmetics segment products due to rising disposable income and increasing urbanization, creating opportunities for private label brands and regulatory challenges.

Moreover, e-commerce enables vendors in the consumer packaged goods (CPG) market to optimize their distribution networks, reducing the need for extensive physical retail presence. This agility in distribution enhances supply chain efficiency, reducing costs and improving overall market competitiveness. This shift towards online shopping is also fueled by changing consumer preferences towards personalized and natural products in categories like skincare products and makeup & personal care products. Therefore, the growth of the e-commerce industry globally will drive the expansion of the market during the forecast period. 

 Market Trends 

The rise of direct-to-consumer (D2C) brands is an emerging trend shaping market growth.  D2C brands cut out traditional intermediaries such as retailers and wholesalers, allowing them to connect directly with consumers. This streamlining of the supply chain enables brands to have greater control over their products and pricing. D2C brands leverage digital platforms to engage directly with consumers. This direct relationship fosters a better understanding of consumer preferences, leading to more personalized marketing strategies and product offerings. Direct interactions with consumers generate valuable data. D2C brands leverage these data to gain insights into consumer behavior, preferences, and trends. 

Further, D2C brands often exhibit greater agility and innovation. With fewer layers of bureaucracy and decision-making, these brands can quickly adapt to changing market trends, introduce new products, and respond promptly to consumer feedback. Companies have leveraged digital platforms, focused on consumer engagement, and built strong brand identities, contributing to their success in the competitive consumer goods landscape. Overall, the rise of D2C brands will positively impact the growth of the market during the forecast period.

Market Challenge 

Global inflation and supply chain disruption a significant challenges hindering market growth. Supply chain disruptions have been exacerbated by global events, such as the COVID-19 pandemic and the Russia-Ukraine war. Lockdowns, restrictions, and geopolitical tensions have disrupted the flow of goods, leading to delays, shortages, and increased logistics costs. The CPG sector, reliant on efficient and timely supply chains, is particularly vulnerable to these disruptions. Absorbing the cost increase shrinks profit margins, negatively impacting long-term growth strategies and innovation. Inflationary pressures, driven by factors such as rising commodity prices, transportation costs, and labor expenses, pose a significant challenge for CPG companies.

Further, the lingering effects of the COVID-19 pandemic continue to impact the global consumer packaged goods (CPG) market. The pandemic accelerated the shift toward e-commerce, altered consumer behavior, and highlighted vulnerabilities in global supply chains. CPG companies are grappling with the need to adapt to new market dynamics and consumer expectations. Additionally, consumers might prioritize essential items over discretionary ones, altering sales patterns within the market in focus. Overall, the combined forces of global inflation and supply chain disruption will pose a significant threat to the growth of the market during the forecast period.

Market Segmentation by Distribution Channel 

The offline segment is growing at a significant rate in the market. The offline segment distribution channel includes supermarkets, hypermarkets, and convenience stores. Such distribution channels allow consumers to choose from a large variety of CPG products as they have dedicated sections for different brands. Hypermarkets and supermarkets are the key distribution channels for CPG products in the retail segment. The dominance of the segment is due to the growth of the organized retail industry. Consumers who buy a certain quantity of products at hypermarkets and supermarkets receive discounts and free products, increasing sales through these channels. As disposable incomes rise and urbanization accelerates, consumers are gravitating to supermarkets and hypermarkets. Thus, the increase in demand for CPG products through the offline segment is expected to drive the growth of the market during the forecast period.

Market Segmentation by Product

The market share growth by the food and beverages segment will be significant during the forecast period. With a rise in dual-income households and busier lifestyles, consumers seek convenient, ready-to-eat food options that require minimal preparation. Packaged foods and beverages, known for their longer shelf lives, offer a convenient solution for time-pressed individuals and families. Longer shelf lives contribute to reducing food waste by minimizing the likelihood of spoilage.

The food and beverages was the largest and was valued at USD 1,581.31 billion in 2018. 

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Further, food and beverage companies are constantly innovating, offering new and exciting products that cater to diverse tastes and dietary preferences. This includes healthy options such as pre-cut vegetables and single-serving portion controls, alongside indulgent treats. For instance, Nestle offers single-serve portion-controlled ice cream tubs to cater to consumers seeking mindful indulgence. Companies such as PepsiCo, through brands including Quaker Oats and Naked Juice, have capitalized on the demand for healthier and sustainable options, contributing to the growth of the food and beverage segment. Therefore, continued consumer demand for convenient, healthy, and sustainable food and beverage options, changing lifestyles, increasing health consciousness, and the ongoing trend of at-home consumption are expected to fuel the demand for packaged food and beverage products, which, in turn, will fuel the growth of the market through the food and beverage segment during the forecast period.

Key Regions for the Market

North America is estimated to contribute 35% to the growth of the global market during the forecast period

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Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. Growing urbanization is also one of the major factors propelling regional consumer packaged goods market growth. The rise of cities creates a demand for convenient, space-saving products. CPG items cater to this need with smaller package sizes and shelf-stable options. Additionally, the rise of single-person households increases the demand for individual-sized portions. CPG companies are constantly innovating, introducing new products that cater to diverse dietary needs and preferences. This includes healthier options, organic choices, and ethnic flavors, keeping consumers engaged. The presence of major CPG vendors in North America, including multinational corporations and local players, also contributes to regional consumer packaged goods market growth.

In addition, these vendors have extensive distribution networks, marketing capabilities, and brand recognition, which enable them to reach a wide consumer base efficiently. Overall, the North American consumer packaged goods market is poised for continued growth due to evolving consumer preferences, the convenience offered by CPG products, and the presence of established vendors with robust distribution networks and marketing strategies. As consumers continue to prioritize convenience, health, and sustainability, the regional market is expected to witness further expansion during the forecast period.

Company Overview

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 forecasting growth and analysis.

• Key Offering- Carlsberg Breweries: The company offers consumer packaged goods under brand names such as Budweiser, Busch, Michelob, Bud Light, Natural Light, and others.
• Key Offering- Colgate Palmolive: The company offers consumer packaged goods under the brand names Colgate, Palmolive, Protex, Sanex, and others.

The  market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including 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

The market analysis and report of 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.

Segment Overview

The market research and growth report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028. 

• Product Outlook
  • Food and beverages
  • Personal care and cosmetics
  • Household supplies
  • Pharmaceuticals
  • Others

• Distribution Channel Outlook
  • Offline
  • Online

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • South America
    • Chile
    • Brazil
    • Argentina 
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The Consumer Packaged Goods (CPG) market encompasses a wide range of products, including household commodities, food & beverages, makeup & personal care products, and clothes. This industry is influenced by various factors, such as the rising population rate, consumer awareness, and changing consumer preferences. As emerging nations experience increasing urbanization and higher per capita income, demand for CPG products grows, leading to opportunities for market expansion. However, challenges like pollution, incorrect labeling, and regulatory hurdles persist. To address these challenges and tap into future prospects, CPG companies focus on innovation, personalization of products, and sustainability. They adapt to changing consumer trends, leveraging e-commerce and digital transformation to reach a wider audience. Healthier and more sustainable CPG products cater to evolving trends in health and wellness, while resilient and agile supply chains ensure product availability despite volatile commodity prices and tight competition.

Overall, the CPG market thrives amidst economic uncertainty, driven by consumer preferences and globalization. The market is shaped by various factors, including rising competition, regulatory challenges, and changing customer preferences. With the global population increasing, demand for CPG products like household goods, personal care, and cosmetics rises. To meet evolving consumer needs, CPG companies focus on product development, innovation, and offering personalized and natural products. Online shopping continues to gain traction, particularly for personalized fragrances, skincare products, and household items.

Further, sustainability and environmental concerns drive the demand for eco-friendly packaging solutions. However, regulatory compliance, price sensitivity, and commodity price volatility present challenges. Retail consolidation and the rise of private label brands also impact the market landscape, emphasizing the importance of brand loyalty amidst fragmentation and globalization in emerging markets. The personal care and cosmetics segment thrives on product development and innovation to cater to easy living and always-on lifestyles. Globalization opens doors to emerging markets, emphasizing regulatory compliance, standards, and brand loyalty amidst fragmentation.

Market Scope
Report Coverage	Details
Page number	171
Base year	2023
Historic period	2018 - 2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 4.49%
Market Growth 2024-2028	USD 1,280.8 billion
Market structure	Fragmented
YoY growth 2023-2024(%)	3.67
Regional analysis	North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution	North America at 35%
Key countries	US, China, Japan, Germany, and UK
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
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
Market dynamics	Parent market growth analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period
Customization purview	If our 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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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2024 and 2028
• Precise estimation of the size of the market size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market industry across North America, Europe, APAC, South America, and Middle East and Africa
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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