Consumer Packaged Goods (CPG) Market Size (USD 3,171.11 Bn) by 2032

Consumer Packaged Goods (CPG) Market Size and Share

The global consumer packaged goods market (CPG) size to grow from USD 2,132.1 billion in 2022 and estimated to reach USD 3,171.11 billion by 2032, growing at a 4.1% CAGR from 2023 to 2032.

Unlock Infinite Advantages: Subscribe to Annual Membership

Report Highlights: Important Revelations

• The global consumer packaged goods (CPG) market is anticipated to witness substantial growth, with an value of USD 2,132.1 billion in 2022.
• This growth trajectory is projected reaching an value of USD 3,171.11 billion by the year 2032.
• Over the period from 2023 to 2032, the market is expected to experience a CAGR of 4.1%.
• Interconnected markets driving consumer packaged goods companies to explore international opportunities. 
• North America's CPG industry commands a $2 trillion valuation. 
• Asia Pacific’s consumer package goods set to expand rapidly by 2030. 
• Food and beverage reigns supreme in consumer packaged goods sales. 
• Consumer packaged goods companies prioritize large offline retailers in operations.

Consumer packaged goods are goods that the typical consumer consumes daily, such as food, beverages, and household supplies. and makeup.

Consumer packaged goods (CPG) play a pivotal role in the daily lives of individuals, encompassing a diverse range of products from food and beverages to apparel and cosmetics. These items are integral to households and necessitate consistent replenishment or replacement, fuelling an ongoing demand that fosters a fiercely competitive market for all brands. Underscores the robustness of the CPG sector, revealing an impressive 8% year-over-year growth and a projected annual sales figure of $1.62 trillion. This data signals a thriving market environment, prompting CPG firms to keenly observe shifting consumer patterns. A notable 40% of these firms actively respond to these changes by setting ambitious sustainability objectives.

In response to the imperative of sustainability, CPG companies are strategically incorporating comprehensive plans to align their operations with environmentally conscious practices. A prime example is the commitment to sustainable packaging for their product lines. By prioritizing eco-friendly materials and production processes, these firms aim to reduce their environmental footprint and contribute positively to global sustainability goals. Moreover, CPG companies are adopting holistic sustainability initiatives that extend beyond packaging. These initiatives encompass emission reduction strategies and other environmentally responsible objectives, collectively aimed at enhancing the overall eco-friendliness of their products. This strategic shift towards sustainability aligns with evolving consumer preferences and positions CPG firms as responsible contributors to a greener and more sustainable future.

The preference for consumer packaged goods (CPG) varies across different generational cohorts, highlighting distinct consumer behaviours. Among Millennials (Gen Z), approximately 79% express preferences for CPG products, showcasing a significant affinity for these goods. Generation X closely follows, with 78% indicating a preference for CPG items. Boomers also exhibit a substantial inclination, with 70% expressing a preference for CPG. In contrast, the Silent Generation demonstrates a comparatively lower preference, with 57% indicating a favourable stance towards CPG products.

Interconnected Markets Driving Consumer Packaged Goods Companies to Explore International Opportunities

• CPG products, from food and beverages to personal care items, constitute essential and routine consumer purchases, driving consistent demand.
• The perishable nature of many CPG goods and the routine consumption patterns necessitates regular replenishment, ensuring a continuous market demand.
• The broad spectrum of CPG offerings, including food, clothing, cosmetics, and household items, caters to a wide range of consumer needs, expanding market reach.
• Shifting consumer preferences and evolving lifestyles influence the types of CPG products in demand, prompting innovation and adaptation by manufacturers.
• Technology integration in manufacturing, distribution, and marketing processes enhances efficiency, reduces costs, and improves overall supply chain management for CPG companies.
• The rise of online shopping platforms provides consumers convenient access to a wide array of CPG products, reshaping traditional retail dynamics and expanding market accessibility.
• Increasing health and wellness awareness influences consumer choices, driving demand for healthier food options, organic products, and environmentally friendly packaging within the CPG sector.
• As markets become increasingly interconnected, CPG companies are exploring global opportunities, leading to the expansion of their product distribution and market presence.
• Growing environmental consciousness among consumers propels CPG companies to adopt sustainable practices, including eco-friendly packaging, reducing emissions, and incorporating responsible sourcing.

Consumer Packaged Goods (CPG) Market Trends

North America's CPG Industry Commands a $2 Trillion Valuation

The consumer packaged goods (CPG) industry remains a cornerstone of North America's economic landscape, boasting an impressive valuation of around $2 trillion. Industry leaders, including renowned companies like Coca-Cola, Procter & Gamble, and L'Oréal, play pivotal roles in shaping this sector's trajectory. Despite healthy profit margins and robust financial standings, CPG manufacturers face perpetual challenges securing coveted shelf space within retail establishments. To maintain and expand market share, these companies consistently allocate substantial resources to advertising, aiming to enhance brand recognition and drive sales.

The CPG landscape has witnessed a notable trend of increased marketing expenditures across diverse sectors, sizes, and price tiers in the United States. According to a survey conducted among U.S. marketing professionals, 23 per cent of CPG companies' budgets were dedicated to marketing initiatives in early 2023. This proportion marked the highest share of advertising expenditures observed among various industries in the country during that period.

For Instance,

• In August 2023, A product produced with Crisp, an open data system for the consumer goods sector, North America's United Natural Foods, Inc. unveiled UNFI Insights.

While established market leaders like PepsiCo and L'Oréal continue their annual investments of billions of dollars in expansive marketing campaigns, they find themselves at the forefront of adapting to significant shifts in consumer behaviour. Consumers evolving preferences and behaviours necessitate a strategic realignment of marketing approaches, prompting these industry giants to navigate and capitalize on the changing dynamics to maintain their competitive edge in the ever-dynamic CPG landscape.

For Instance,

• In September 2023, the new Instacart for Shopify app allows rising consumer packaged goods (CPG) firms on Shopify to use Instacart Ads. Instacart is the leading grocery technology company in North America.

Asia's rapidly expanding consuming class is a noteworthy trend poised to reshape the region's economic landscape. By 2030, it is projected that an astounding three billion individuals, constituting 70% of Asia's total population, will join the consuming class. This surge represents a billion more individuals than the present and a substantial increase of 2.5 billion from the turn of the millennium. Such a demographic shift is anticipated to significantly enlarge the consuming class in various economies.

Projections indicate a substantial increase in the consumption class in specific countries. By 2030, Indonesia may see up to 200 million individuals becoming part of the consuming class, a noteworthy increase from the current 120 million. Similarly, India could witness an expansion to as high as 825 million individuals in the consuming class by 2030, up from approximately 340 million.

Notably, the growth in the consuming class is not only about an influx of new members but also about internal mobility within the class itself. The upward income movement within the consuming class will drive consumption growth over the next decade. This upward shift in revenue is set to alter the centre of gravity in the income pyramid, influencing consumption habits.

Over the last two decades, a substantial 80% of Asia's consumption growth has been attributed to the lower-income segments of the consuming class as new members entered. It is anticipated that higher-income consumers will take the lead, contributing up to 80% of future consumption growth in the next decade. This shift in the composition of the consuming class and their income levels presents a significant opportunity for consumer packaged goods (CPG) companies to cater to an expanding and evolving consumer base in the dynamic Asian market.

For Instance,

• In September 2023, India's Tata Consumer Products (TCPL), a packaged goods company, "limited its universe" for its subsequent product launches by focusing on five main areas. These categories, which include coffee, tea, and salt, reflect its current main products.

Food and Beverage Reigns Supreme in Consumer Packaged Goods Sales

The food and beverage sector has emerged as the predominant online consumer packaged goods (CPG) segment for the year, representing 44% of total sales. While the pandemic significantly boosted online sales, other market dynamics, such as adherence to hygiene standards and a growing consumer preference for personalized experiences, are expected to sustain the momentum of online shopping in this category. Projections indicate that the food and beverage segment is poised to generate a substantial $26,774 million in revenue.

In recent years, consumer packaged goods and food and beverage industries have faced persistent challenges, with ongoing disruptions extending beyond the initial impact of the global pandemic. Raw material shortages originating from Ukraine and Russia, along with delays in production and processing and surging oil and gas costs, have directly affected various aspects of food-related manufacturing, transportation, and agricultural supply chains. These challenges are not confined to a specific region, as CPG manufacturing, food distribution, and retail operations grapple with issues on a global scale.

In December 2022,

• The FMCG division of Reliance Retail, Reliance Consumer Products, announced the debut of it made-in-India consumer packaged goods brand, Independence.

Specifically, the availability of raw ingredients critical to the production of staple products such as cereal, flour, bread, beer, and other commodities has been constrained in the United States. Furthermore, disruptions in the shipping and container industries have led to delayed shipments and increased costs, exacerbating concerns about inflation. The cumulative impact of these factors underscores the intricate challenges faced by the food and beverage sector within the larger CPG landscape, necessitating strategic adaptation to navigate the complexities of the current market environment.

Consumer Packaged Goods Companies Prioritize Large Offline Retailers in Operations

The forefront of the consumer packaged goods (CPG) market, demonstrating substantial dominance in both offline and online dimensions. This sector is impressive in offline transactions, amounting to $297, emphasizing the enduring significance of traditional brick-and-mortar retail channels. The offline basket size signifies the average amount spent on food and beverage products in physical stores, highlighting the substantial revenue generated through these conventional retail outlets.

In contrast, the online basket size for the food and beverage sector is $64, indicating the average expenditure on these products in the digital realm. Although the online dimension is a growing aspect of the market, it is noteworthy that the offline component retains its substantial share, underscoring the continued importance of physical retail channels for CPG companies.

For Instance,

• In September 2023, the pioneer of next-generation product visualization technology for retailers and brands, Nfinite, unveiled new research findings from Dimensional Research today and increased CPG offerings.

CPG companies strategically prioritize large brick-and-mortar retailers as a focal point of their operations, recognizing that these outlets constitute most of their business. The emphasis on brick-and-mortar retail is particularly relevant for high-volume perishable items within the food and beverage sector. These products, widely available at retailers globally, are frequently purchased for immediate consumption, with consumers instinctively replenishing their preferred frozen meals. The chronic nature of these purchases, often made with minimal deliberation, contributes to the enduring strength of brick-and-mortar retail for CPG companies operating in the food and beverage sector.

Harnessing CPG Data Insights to Elevate Your Marketing Strategy

Understanding and utilizing data is crucial for CPG brands aiming to enhance their marketing strategies. By collecting, analyzing, and leveraging data insights, brands can significantly improve their sales methods, inform product development, monitor competitors, and personalize marketing campaigns.

Boosting Sales Methods

Analyzing CPG data allows for better decision-making regarding products and sales processes. It helps identify underperforming products, categories, or specific retail stores and locations. This critical insight enables brands to:

• Reach new customers
• Engage with existing customers
• Unlock new audience opportunities
• Understand underperforming products, stores, and markets
• Shift budget to higher-performing areas

To improve sales, focus on successful areas and learn from them while addressing less successful areas with targeted marketing efforts.

Informing Product Development

Sales data analytics provide a clear picture of when to create new products or optimize existing ones. Insights into consumer preferences, historical data, and market trends help marketers collaborate with product development teams to meet evolving consumer needs. By making informed decisions about product creation and retirement, brands can drive growth and profitability.

Monitoring Competitors

CPG data insights are invaluable for assessing and monitoring competitor activity. By keeping an eye on the competitive landscape, brands can differentiate themselves effectively. Key areas to monitor include:

• Pricing
• Promotions
• Product offerings (including new products or relaunches)
• Consumer behavior (particularly when shoppers choose competitors)
• Market sentiment
• Trending products, brands, or categories

Understanding both competitive and consumer data allows brands to stand out with effective product recommendations and personalized customer experiences.

Personalizing Marketing Campaigns

Data is essential for delivering targeted, personalized, and effective marketing campaigns in the CPG industry. Insights into consumer behavior, preferences, and interactions enable marketers to personalize strategies, ensuring that marketing efforts resonate with consumers and drive engagement and sales.

CPG brands can use data to:

• Identify customers and new target audiences
• Send personalized marketing messages

Personalization is the next era of CPG marketing, allowing for 1:1 experiences at scale through smart targeting, segmentation, and activation across marketing channels.

By leveraging CPG data insights, brands can enhance their marketing strategies, ensuring they remain competitive and relevant in a rapidly evolving market.

Competitive Landscape

The competitive landscape of the consumer packaged goods (CPG) market is characterized by established industry leaders such as PepsiCo, Unilever, Nestle, General Mills, Danone, Mondelez, JBS, AB InBev, Kraft Heinz and Diageo. These giants face competition from emerging direct-to-consumer brands, leveraging digital platforms for market entry. Key factors influencing competition include innovation in product offerings, sustainable practices, and the ability to adapt to changing consumer preferences. Additionally, the sector sees dynamic collaborations, acquisitions, and strategic partnerships as companies strive to capture market share in this highly competitive and evolving industry.

Consumer Packaged Goods (CPG) Market Key Players

• PepsiCo
• Unilever
• Nestle
• General Mills
• Danone
• Mondelez
• JBS
• AB InBev
• Kraft Heinz and Diageo

Recent Developments

• In December 2023, Chobani, a consumer goods company, acquired the ready-to-drink coffee manufacturer La Colombe to its portfolio. The $900 million acquisition was completed in December.
• In November 2023, Mars acquired the UK Chocolate Brand Hotel Chocolate. The acquisition will boost Hotel Chocolates' growth prospects in the United Kingdom and new global markets.
• In November 2023, General Mills acquired Veterinarians and established Fera Pets, a line of pet supplements. This new product will be the first supplement in General Mills' pet portfolio and the first purchase made by the company's recently established growth equity fund.
• In August 2023, Naturium was purchased by e.l.f. Beauty, Cosmetic brand leader, for $355 million in shares and cash.

Market Segments

By Application

• Food and Beverage
• Household Supplies
• Personal Care and Cosmetics
• Others

By Distribution Channel

• Online
• Offline

By Region

• North America
• Europe
• Asia Pacific
• LAMEA