Navigating the future of CPG industry challenges with innovative Route-to-Market strategies

CPG industry challenges


  • Navigating the evolving landscape of CPG marketing in 2023 requires a keen understanding of consumer trends and strategic adaptation.
  • With a focus on Gen Z's preferences, the rise of private labels, and the Direct-to-Consumer wave, CPG brands are leveraging AI, experiential marketing, and influencer partnerships to stand out.
  • Innovative approaches like delivery apps, live streaming, and limited-release tactics are reshaping how brands connect with and retain consumers.
  • Embracing these trends and technologies is crucial for CPG companies aiming to thrive amidst inflation, supply chain challenges, and dynamic consumer behavior.

2023 presented many challenges for CPG brands; mainly inflation, supply chain issues, and dynamic consumer behavior. During economic uncertainties the Consumer Packaged Goods (CPG) industry is often faces a myriad of challenges. This is because it is incredibly sensitive to shifts in consumer preferences and serves as a barometer for the broader economic landscape.

In the quest for growth, 80% of CEOs are turning to marketing as the driving force. To achieve this CPG companies are harnessing the power of artificial intelligence, having a comprehensive understanding of consumers, and adopting tailored marketing technology stacks.


Latest consumer trends to watch out for

Consumer trends in the CPG industry are continually evolving, influenced by various factors such as technological advancements, changing lifestyles, and shifts in consumer preferences. Staying abreast of these trends is crucial for CPG companies to remain competitive and meet the ever-shifting demands of the market just popular brand products open up new avenues for both, retailers and consumers.

  • Embracing the Direct-to-Consumer (D2C) wave

In the ever-evolving retail landscape, there’s a noticeable surge in consumers embracing the Direct-to-Consumer (D2C) business model. This shift is not just a passing trend; it’s a profound response to a growing appetite for distinctive and authentic products, in addition to immersive brand experiences.

  • Consumers pampering themselves with plants

Forget face masks made from cucumber slices and DIY scrubs with leftover coffee grounds – self-care in 2024 is set to be sleek, sustainable, and oh-so-green. Millennials and Gen Z are leading the charge, ditching harsh chemicals and plastic packaging for luxurious plant-based products that pamper both, body and soul.

Marketing strategies to navigate the CPG industry 

An essential aspect of CPG marketing lies in making a brand stand out amid fierce competition. Given the abundance of comparable products in the market, it becomes imperative for companies to craft distinctive selling propositions that separate them from competitors. By employing strategic marketing initiatives, CPG brands can adeptly convey their value proposition, solidifying a robust market presence. In light of the evolving trends within the CPG industry, the following are some strategies to navigate emerging market challenges in the forthcoming years.

  • Diversity-driven triumph

Making marketing efforts inclusive isn’t just a hurdle; it’s a chance for CPG companies to champion purpose and authenticity. Incorporating Diversity, Equity, and Inclusion (DEI) into marketing approaches not only fosters a more inclusive society but also unleashes the complete potential of the brand.

  • Experiential marketing

In the era of social media and constant digital engagement, the significance of crafting unforgettable experiences for consumers has never been more critical. Experiential marketing entails developing interactive and immersive brand encounters that surpass conventional advertising. By captivating various senses and generating shareable moments, brands have the potential to create a lasting impact on their audiences.

  • Delivery Apps: A game-changer in CPG marketing

Delivery apps present a lucrative opportunity for CPG brands to reach new audiences and boost sales. These platforms are not just for ordering food anymore – they’re evolving into mini-marketplaces from where consumers are buying more groceries and household essentials. These apps can help build a large user base, providing an opportunity to broaden the brand reach.

  • Power of partnerships with micro-influencers

While endorsements from industry experts foster trust, collaborating with micro-influencers, who account for nearly half of all influencers, is a compelling alternative. Why, you may wonder, are influencer collaborations emerging as a top CPG marketing trend?

The answer lies in solving the CPG industry challenge of authenticity and trust that influencer partnerships can bring. Aligning with influencers who resonate with your brand enhances credibility because they vouch for the quality and allure of your CPG products and (most) people take their word for it

  • Live streaming: Real-time engagement

About 23.7% of global social media users watch live streams. This real-time, interactive approach not only captivates audiences, but also provides CPG brands with the unique opportunity to connect, showcase products, and build loyal customer bases.

  • Limited-release marketing tactic

The hottest marketing tactic for a host of CPG industry challenges and market breakthroughs is limited-release drops, using scarcity to excite customers and create a buzz. It elevates brands from the ordinary to the extraordinary. This tactic involves introducing products or content in a deliberately restricted quantity and timeframe, creating a sense of exclusivity and urgency among consumers who can get their hands on them. Through this, brands can not only drive immediate sales, but also cultivate a loyal and engaged customer base who will make purchases in the future.

  • Subscription boxes

Subscription boxes are more than just a delivery service; they’re a commitment to provide ongoing value and build lasting customer relationships. By focusing on personalization, convenience, and data-driven insights, you can turn your CPG brand into a subscription success story, leaving your competitors in the dust. According to IMARC Group, the market expects to reach USD 73.6 Billion by 2028, exhibiting a growth rate (CAGR) of 16.5% during the 2023 – 2028 period.

  • Co-marketing magic

Forget going it alone – in the CPG world, collaboration is king. Co-marketing offers a potent elixir for brands to amplify reach, generate buzz, and unlock new customers. Co-marketing is an art, not a science. Choose your partners wisely, align your goals, and focus on creating impactful, value-driven campaigns that resonate with your audiences.

Final thoughts

The outlook for CPG marketing is a dynamic interplay of innovative strategies, authenticity, and collaborative endeavors. Brands that adapt, innovate, and embrace these trends are poised to not just navigate but also thrive in the evolving landscape of the CPG industry. The journey forward is marked by endless possibilities, awaiting brands ready to chart a course toward marketing success.

Leading CPG brands partner with Netscribes to assess both internal and external market dynamics, identify emerging CPG trends, and shape their marketing and strategic growth endeavors. If you’re seeking assistance in navigating uncertainties and ensuring readiness across various channels, feel free to reach out to us to explore how we can support you.

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