Consumer Packaged Goods (CPG) Market size is set to grow by USD 1.28 trillion from 2024-2028, Increasing sales of CPG products from E-commerce boost the market, Technavio

NEW YORK, May 23, 2024 /PRNewswire/ -- The global consumer packaged goods (CPG) market size is estimated to grow by USD 1.28 trillion from 2024-2028, according to Technavio. 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. Eliminating intermediaries like retailers and wholesalers, D2C brands forge direct connections with consumers, enabling control over products and pricing. Digital platforms facilitate these interactions, providing insights into consumer preferences for personalized marketing and offerings.

Valuable data is generated, informing brands about behavior, trends, and preferences in household commodities, clothes, packaging solutions, food and beverages, personal care, and household goods. Amidst increasing urbanization, rising disposable income, 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 CPGs.

Market Challenges

• The Consumer Packaged Goods (CPG) market is currently facing numerous challenges, including supply chain disruptions caused by global events such as the COVID-19 pandemic and the 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 expenses, further complicate matters.
• The CPG sector, which includes household commodities, clothes, food and beverages, personal care, and household goods, is particularly vulnerable to these issues. Emerging nations, with their rising disposable income, increasing urbanization, and global population growth, present both opportunities and challenges for CPG companies. Sustainability, e-commerce, personalized fragrances, skincare products, and tight competition are also significant trends shaping the market.

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Segment Overview

1. Product
• 1.1 Food and beverages
• 1.2 Personal care and cosmetics
• 1.3 Household supplies
• 1.4 Pharmaceuticals
• 1.5 Others
2. Distribution Channel
• 2.1 Offline
• 2.2 Online
3. Geography
• 3.1 North America
• 3.2 Europe
• 3.3 APAC
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Food and beverages- In the Consumer Packaged Goods (CPG) market, the trend toward convenience and sustainability continues to shape product segmentation. Private label brands, fueled by e-commerce platforms, cater to time-pressed consumers seeking affordable, ready-to-eat food options and household goods. Sustainability remains a key concern, with consumers increasingly opting for packaged foods and beverages with longer shelf lives, reducing food wastage at both the consumer and retail levels.

Online shopping, driven by personalized fragrances and skincare products, further intensifies competition in the market. Tight competition, price sensitivity, and retail consolidation pose challenges, while supply chain disruptions and commodity price volatility add to economic uncertainty. Household commodities, including clothes and packaging solutions, are also subject to these trends in emerging nations, where rising disposable income, increasing urbanization, and a global population drive demand. Future prospects include the growing importance of sustainability, rising competition, and the need for accurate labeling to mitigate issues like incorrect labeling and pollution concerns.

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Research Analysis

In the Consumer Packaged Goods (CPG) market of emerging nations, the rise in per capita income and increasing urbanization have led to a significant increase in disposable income. This trend has resulted in a surge in demand for various CPG products such as clothes, skincare, and personalized fragrances. However, challenges persist in the form of volatile commodity prices, regulatory issues, and rising competition.

Incorrect labeling and pollution concerns are also pressing matters that need to be addressed. Private label brands have gained popularity due to their affordability and quality, while e-commerce and online shopping have revolutionized the way consumers purchase CPG products. Despite these challenges, the future prospects of the CPG market in emerging nations remain promising.

Market Research Overview

The Consumer Packaged Goods (CPG) market encompasses a wide range of products used by consumers for personal care, food, beverages, and household needs. These goods are typically mass-produced, readily available, and affordable. The CPG industry is subject to various trends and factors, such as changing consumer preferences, emerging technologies, and regulatory requirements. Sustainability and eco-friendliness are increasingly important considerations for consumers, leading to the growth of organic and natural product offerings.

The market is also influenced by regional differences and demographic shifts. Competition in the CPG sector is fierce, with numerous brands vying for market share. The industry is characterized by its fast-paced nature, requiring companies to stay agile and adapt to evolving consumer demands. The use of technology, such as automation and data analytics, is essential for optimizing supply chain operations and enhancing customer experiences. The CPG market is a dynamic and ever-evolving landscape, offering opportunities for innovation and growth.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Product
• Food And Beverages
• Personal Care And Cosmetics
• Household Supplies
• Pharmaceuticals
• Others
• Distribution Channel
• Offline
• Online
• Geography
• North America
• Europe
• APAC
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com/

SOURCE Technavio

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