According to the Market Statsville Group (MSG), the global consumer packaged goods market size is expected to grow from USD 361.7 million in 2022 to USD 825.5 million by 2033, growing at a CAGR of 3.1% from 2023 to 2033.
The shift in the family consumption basket of products is responsible for the appealing growth rate of consumer packaged goods (CPG). Technology advancements and innovations are propelling the industry through both offline and online channels. Since CPGs have a limited lifespan, demand is continual because they are expected to be used fast. The market is also expected to grow as a result of consumer micro-segmentation driving new product releases. With more items shown in the same place, CPG companies or brand owners have broadened their reach and increased the frequency of their marketing and promotional activities. . However, changing consumer habits are a big restraint in the industry, as are many competitors, which function as a major element to restrict the market.
Consumer packaged products are commodities that ordinary customers use on a daily basis and require regular refill or replacement. The consumer packaged goods industry has considerable market saturation and low consumer switching costs since consumers may easily replace their product with a cheaper accessible product on the market. The demand for such items is consistent, and the market is very competitive for all enterprises. As a result of the growing focus on developing markets, this business tends to evolve swiftly as international markets arise in various nations.
The product packaging is unique and appealing in order to stand out from the competition on a drugstore, grocery, or big box store shelf it has been challenging for manufacturing to selling CPG through E-commerce outlets on the internet. CPGs may also be compared with durable goods (DGs), a term used in business to describe merchandise that is not consumed or damaged in use and is normally not replaced unless the item develops a problem. Appliances, furniture, and vehicles are examples of durable items.
The COVID-19 began in Wuhan (China) in December 2019 and has since expanded rapidly around the world. In terms of confirmed cases and reported deaths, the United States, India, Brazil, Russia, France, the United Kingdom, Turkey, Italy, and Spain are among the worst impacted nations. Due to lockdowns, travel bans, and commercial shutdowns, the COVID-19 has had an impact on economies and businesses in a number of nations. The global population has prohibited themselves from leaving their houses or is on the verge of doing so, which has an influence on all markets, whether favorable or bad. The Coronavirus has caused widespread destruction. Lockdowns and significant social isolation measures have been implemented in almost every country. As a result, supply chains have been disrupted. The pandemic has wreaked havoc on the global networks. The outbreak of COVID-19 disease (COVID-19) has also acted as a massive restraint on the food and beverages market in 2020. Food and beverages has put the direct impact on consumer packaged goods market.
Rural consumers often buy things from local cities and villages. Lately, there has been a movement in consumer purchasing behaviour towards local purchases, necessitating the need for improved local advertising activities to build brand awareness in small towns. FMCGs are important to the economy because they are inelastic items that impact every aspect of consumer life. Companies that offer FMCGs to rural communities can help create jobs and reduce the cost of such items in those communities.
In order to meet the changing demands of consumers, the consumer packaged goods industry has evolved rapidly. Technology has permeated many aspects of daily life, particularly how consumer packaged goods are purchased and sold online. Chatbots and AI are helping marketers build highly tailored experiences by streamlining the consumer journey.
Consumer packaged goods (CPG) are perhaps among the most difficult businesses to succeed in. It's an industry where businesses must strike a balance between being inventive and adaptive while not changing too much of what made them successful in the first place. While this allows firms in the CPG industry to discover new potential for growth, it also implies that there are hazards that top-level executives must continuously consider.
One of the most difficult issues for CPG firms is also a positive risk for the sector as a whole. When customer preferences shift, firms must regroup and devise new methods to be inventive and efficient. Moreover, consumers are increasingly more concerned with the ecological and social effect of the items they buy and the companies they buy from, according to a rising trend.
Brands will face the difficulty of striking a balance between customer demand to embrace sustainability and what sells. As the discussion about single-use plastics heats up, people are beginning to demand refilled consumer products in order to decrease the quantity of packing required. These reasons has create a negative effect on the market over the forecasting period.
For years, most CPG companies have been seeking digital transformation. However, the growing reliance of consumers on digital platforms highlights the need to speed the process. It is vital to have access to correct, up-to-date information that can enable the most innovative tools and technology. Providing data transparency throughout the company, as well as with partners and customers, is critical to enabling the engaging experiences that customers require and expect.
As customer behaviour evolves, organisations must be able to adapt proactively and pivot rapidly and technology advancement made it easy. The inability to manage and exchange data, as well as permit data transparency, impedes corporate agility had increased assortments, and minimise value from new digital channels. Businesses may fulfil their demanding objectives and timetables by sharing information with retailers and partners using a single trusted source of data.
The study categorizes the consumer packaged goods market based on type, and distribution channel area at the regional and global levels.
Based on the distribution channel, the market is divided into offline and online. The online segment is expected to dominate the market share in 2022 in the global consumer packaged goods market. CPG brands saw strong growth in traffic in 2020 as almost all retail moved online. Throughout 2020, this growth coincided directly with lockdown measures as consumers were forced to shop online. Several ecommerce opportunities have arisen for the CPG industry in recent years as a result of the rapid growth of retail giants such as Amazon and Walmart. The former's acquisition of Whole Foods and foray into same-day delivery goods has resulted in the latter's fastest growing category, with a 40%+ growth rate. These reasons have boosted the segment growth over the forecasting period.
Based on the regions, the global consumer packaged goods market has been segmented across Europe, North America, the Middle East & Africa, Asia-Pacific, and South America. Asia Pacific is projected to account for the highest market share in 2022. The rising middle-class population coupled with their growing spending power has increases the preference for processed food products among millennials, growing health awareness, in addition to the increased interest of foreign investors in the region is projected to favor the growth of the industry within the Asia Pacific. Moreover, the increasing investment in this market has boosted the market growth in this region over the forecasting period.
The consumer packaged goods market is a significant competitor, and extremely cutthroat in the sector are using strategies including product launches, partnerships, acquisitions, agreements, and growth to enhance their market positions. Most sector businesses focus on increasing their operations worldwide and cultivating long-lasting partnerships.
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