CPG food companies have demonstrated considerable resilience throughout the global pandemic and supply chain crisis. Research from a leading advertising specialist has revealed that household CPG spending surged by 19% during 2020. Even now that pandemic restrictions are easing, the CPG market is showing no signs of slowing down. What’s driving this surge? This article explores the CPG industry trends that your brand can capitalize on for 2022 and beyond.

CPG Industry Trends in 2022

The consumer packaged goods (CPG) food industry was recently valued at $1.9 trillion and is currently expected to reach $3.4 trillion by 2030. The future of the industry looks bright, and its remarkable growth means that brands have the opportunity to capitalize on the following important CPG industry trends:

Expanding ECommerce Demands

Today’s consumers have come to rely on eCommerce for a variety of needs and wants, and that is opening opportunities for the way consumer goods are made and delivered. Spending time shopping in brick-and-mortar stores is a far less appealing option as people move more of their lives online. Customers turn to online shopping for three key benefits over physical stores: 

• Price
• Convenience
• A wider selection of goods 

For example, during the recent pandemic, many grocery chains struggled to keep up with the spike in demand, which pushed their customers to online retail apps to satisfy their needs. Now that lockdowns have largely become a thing of the past, shoppers continue to use eCommerce platforms for their purchases as they became accustomed to the ease of buying from home and the lower prices they frequently find online. 

CPG food companies can respond to these changes by strengthening delivery offerings through such offerings to consumers directly on their websites or via the online channels offered by Amazon, Thrive Market, Target and many others. Delivery apps allow CPG food manufacturers to reach a broader customer base than ever before, bringing their buyers closer with the opportunity to supply their products faster and easier than anyone thought possible.

Growing Emphasis on Sustainable, Local Products

Americans are increasingly putting their money where their values are. One marketing firm discovered that nearly 3 in 4 Americans (73%) are willing to change their purchasing habits to protect the environment. In fact, NYU reports that 50% of the growth in the CPG market between 2013 and 2018 came from sustainable products. 

The CPG food industry can capitalize on these trends by pursuing sustainable initiatives to reduce wasteful packaging. Other companies find ways to partner with local farmers to lower the carbon impact of their products and source ingredients from smaller producers. Communicating these commitments on your product labels or in your promotional materials can go a long way toward building customer loyalty. Some companies have garnered additional consumer goodwill by offering a contribution to important social or medical causes with every purchase. 

For example, one jerky company centered its advocacy for disability awareness by donating a portion of its profits to Down syndrome and muscular dystrophy research. Consumers are more willing to purchase from a company that shares their passions, rewarding companies that provide a product they want while also demonstrating commitments to the public good.

Wellness and Self-Care

The pandemic has accelerated American culture’s focus on “self-care.” Sales of wellness products have increased dramatically in recent years. Products in this category target consumers’ desire for finding and maintaining good health. These products can include: 

• Plant-based foods and beverages
• Products supplemented with dietary minerals, vitamins, electrolytes or probiotics
• CBD-based products 

The health and wellness market has outgrown its history in crunchy health food stores and vitamin shops to represent a far broader range of consumer interests. CPG distributors can capitalize on these consumer trends by emphasizing products that contain organic, all-natural ingredients, whole foods as opposed to overly processed ingredients, and by utilizing marketing materials that accent the wellness benefits of their products.

Meal Kits and Subscription Services

While the CPG food industry has historically focused on selling through sales channels focused around supermarkets and other retailers, recent developments in meal kits and subscription services present new opportunities to reach consumers. The global meal subscription market is expected to grow to $442 billion by 2025, presenting a new opportunity for food makers to reach consumers with their products. 

Meal kits, for example, provide busy Americans with access to quick, convenient and healthy meals, as well as an alternative to expensive, greasy fast food. Offering subscription options also ensures that CPG food makers expand their customer base and generate recurring revenues. 

Makers of subscription meal offerings can provide introductory offers to build customer loyalty, then retain these customers through a larger membership plan. Referral programs are another source for attracting new customers to your program. Combined, the opportunity can really boost your bottom line. 

Omnichannel Marketing

Business owners understand the need to reach people where they’re at, but these days American consumers have multiple digital identities spread out across a diverse range of platforms where they get their information. Food makers have to reach their customers by expanding the modes they use to reach them. Historically, CPG distributors have relied on elements including: 

• An optimized, user-friendly website
• Email marketing
• Social media presence and marketing 

Social media is already saturated by companies trying to get the consumer’s attention and rising above the noise takes a strategic approach. You need to find a way to connect with customers in a unique manner that gets their attention without flooding them with distracting content.

You will want to perform some additional market research on the best platforms to reach your target market. For example, if you are trying to market a new energy drink to Millennials or Generation Z, you might consider how Instagram or even TikTok can be a better platform than Facebook. 

Omnichannel marketing also allows you to build brand awareness and communicate your CPG company’s core values. In other words, the digital world has become central to connecting with your target customer demographics and educating them about the many qualities of your products. This approach allows potential customers to connect with your brand and can be crucial in developing customer loyalty.

Personalized Product Recommendations

Data drives eCommerce but CPG food companies can leverage customer data in new ways to drive sales and encourage repeat business. Analytics can be used to understand consumer buying habits and allow you to recommend related products that suit their needs. If a particular customer consistently purchases a wellness beverage, your company might recommend a set of energy bars or similar products that offer related or additional health benefits. 

Research has shown that these strategies can create brand loyalty, discouraging customers from switching brands. Plus, consumer buying habits can be invaluable information for your marketing team. Your company will be better equipped to position your products and provide recommendations for related merchandise that fit the consumer niche.

Fewer In-Store Choices

In 2012, the Harvard Business Review reported that Wal-Mart shoppers demanded less “clutter” on the shelves, causing the retail giant to remove 15% of its SKUs. In-store shoppers will find a narrower range of products on the shelves than before. This decrease in brick and mortar choices adds fuel to the race of food and beverage customers to find online alternatives. 

In some cases, additional product choices can be found through the retailer’s app, though customers may be more loyal to the CPG brand than the merchant that carries them. For CPG food companies, this may mean that emphasizing diverse online choices can drive opportunities that aren’t available in-store. Making sure you have built a solid packaging game helps raise your online presence and steer consumers to your online store for additional options.

Leveraging CPG Industry Trends

Whether you’re a startup or an established CPG distributor, your success begins with your production. That’s why Amped Kitchen offers gold standard kitchen and production space rentals to provide you with the control and flexibility you need to create quality products and build your brand. We offer the space you need to produce your best work supported by key amenities like storage, loading docks and many more. 

When you rent a space at Amped Kitchens as the best solution for your production needs, you will have greater bandwidth to handle your many other business prerogatives, such as marketing or building up your eCommerce capacity. 

Ready to take the tour? Sign up today for more information, and see how the right workspace can propel your CPG business forward.