Battling Inflation’s Impact: CPG Industry Response

Posted by AMC Global on Apr 20, 2023 12:30:27 PM

Recently published in The Future of Commerce, the article "CPG Trends 2023: Proving Value in an Inflation-Weary World" takes a look at the current macro-state of the consumer packaged goods (CPG) industry—and the trends that are expected to shape it over the next few years. The CPG industry has always been dynamic and constantly evolving, and keeping up with the latest trends is crucial for businesses to stay competitive and meet the changing needs and preferences of consumers.

The “CPG Trends 2023” article looks at five major topics: price-sensitivity, building trust, inclusivity, sustainability and growth opportunities. 

 

Inflation’s Continuing Impact on CPG

We took a close look at this topic in a recent consumer behavior study on inflation, and wrote about it for Total Retail magazine in the article, “Inflated Prices, Deflated Consumers: The Impact of Price Increases on Shopper Behavior.” In The Future of Commerce article, they mention many of the same points we uncovered in our research like more consumers turned to private-label goods to save money and how manufacturers will need to improve their value propositions to appeal to budget-conscious consumers. To learn more about our research (and how you can use it to bolster your own CPG company’s innovations) reach out to us!

 

Building Trust for Brand Loyalty

Brands need to ensure that their products inspire trust in order to create brand loyalty, something even more important than ever in the current economy. Understanding what customers are looking for and focusing on unique communications, messaging points and value propositions that win customer loyalty and satisfaction even in the face of cheaper alternatives is the way to go. By using research approaches like Message Filter™ or other custom solutions, CPG brands can dig deep into what consumers want to hear and see right now.

 

Inclusivity in Product Development

Some CPG brands are making efforts towards inclusivity by launching products that cater to people who have been historically left out. This article on CPG trends takes a look at some very interesting innovations from brands like L’Oréal. In 2023, more CPG brands are expected to create inclusive products and remove gender labels, making high-quality products accessible to even more people.

 

Using Sustainability in CPG

One of the key trends highlighted in "CPG Trends 2023: Proving Value in an Inflation-Weary World" is the increasing importance of sustainability and environmentally-friendly practices for CPG companies. We talk about this a lot at AMC Global as the Environmental component of company ESG practices is such a big part of both what’s happening now and what the future holds for our clients. Consumers are becoming more aware of the impact of their purchasing decisions on the environment, and they are demanding products that are eco-friendly and sustainable. This trend will drive innovation in product design, packaging and manufacturing, as companies seek to reduce their carbon footprint and appeal to environmentally-conscious consumers. To learn more, you can download our Tip Sheet: “Consumers and Sustainability: Ways to Innovation and Communication,” or just contact us directly and we can send it over.

 

CPG Industry Growth Opportunities

The article also highlights the growing importance of e-commerce in the CPG industry. We have been studying this with our clients for many years through a variety of research approaches, like shopper studies and more. You access our paper “Top Five Packaging Design Adjustments to Consider for the Online Shopper” to learn more about how to grow the effectiveness of packs for online shopping environments. This isn’t an area that stagnates and with the continued rise of online shopping, companies are investing in e-commerce platforms and digital marketing strategies to reach consumers directly and provide a seamless shopping experience. This trend is expected to continue, with companies leveraging technology to create new ways of engaging with consumers and driving sales. Understanding HOW shoppers use e-commerce will be important for success.

 

Market Research to Keep Up

The "CPG Trends 2023" article in The Future of Commerce takes a good look at the evolving landscape of the CPG industry and the trends that are expected to shape it over the next few years. Companies that are able to adapt to these trends and meet the changing needs and preferences of consumers will be well-positioned for success in the years ahead. In order to understand what YOUR consumers want, reach out to us—and check out all the ways we can get the right insights for CPG.