Future CPG innovation and marketing success relies on identifying and leveraging signals that represent opportunities for action. While most signals are brand-specific, and often based on proprietary product development initiatives and marketing activities, broader trends can sometimes be gleaned through the analysis of market research reports. Through the first half of 2015, analysis of CPG research from firms such as Deloitte, Accenture, Forrester, Kantar, PWC, Nielsen, and IRI, to name a few, has identified six trends that are driving the near future of the CPG sector: Convenience; Portability; Environmental Impact, Health Consciousness; Value; and Specialization. By embracing these trends we have the opportunity to accelerate business growth.
The trend that never goes away, convenience continues to drive consumer adoption. Consumers want their benefits quicker, and with less effort than ever before, and purchase from brands that save time and provide multi-benefit products. Examples include Clairol 5-in-1 shampoos and Aquafresh Complete Care toothpaste.
Consumer’s lives are more frantic than ever before. As they speed through their daily go-go-go routines, busy consumers look for brands that deliver portable, on-the-go offerings. Yoplait’s GoGurt and Kellogg’s Breakfast To Go are examples of portable morning alternatives.
Today’s consumers are more enlightened than ever before regarding a product’s whole lifecycle – from sourcing, to manufacturing, to distribution, to disposal. And they prefer brands that embrace sustainability and transparency as core values. Seventh Generation and Applegate truly embody environmental awareness.
Consumers have finally reached the tipping point with respect to health awareness. The availability of independent information, personal health monitoring, and self-care medicine have caused consumers to look for good-for-you products offering health benefits. Kind Bars and Naked Juice are good examples of brands that have embraced their product’s health benefits.
Erosion in brand loyalty can be directly correlated to price pressure and lack of benefit differentiation. As consumers focus on value over brand affinity, private label offerings such as Kirkland’s and Whole Food 365 are growing their penetration and market share.
With innovation in formulation, packaging, and distribution, consumers are now looking for, and expecting, products that match their specific lifestyles and profiles. The era of mass one-size-fits-all is being replaced by highly specialized just-for-me products. Pampers Active Fit and Udi’s Gluten-Free are two brands that win by offering specialization.