Retail, CPG and Logistics

6 CPG trends to watch out for in the coming years

The past two years have been challenging, especially for the consumer packaged goods (CPG) industry. As the world went into a lockdown, supply chains experienced unprecedented disruptions, and the CPG industry struggled to deliver products to its customers. However, these challenges also ushered in learnings and insights about emerging CPG trends that would drive growth and sustainability in the industry. Despite the setback of the pandemic, the global CPG industry will continue to grow at a CAGR of 6.9% and reach $3.1 billion by 2028. But to realise this revenue target, it is critical to understand the key market drivers and challenges and identify the CPG market trends that will impact the industry and can accelerate or hinder this growth.


6 CPG trends that will impact the industry

Efficiency, transparency (or visibility), resilience, innovation, and sustainability are some of the main themes creating waves in the CPG industry. But how are they affecting the CPG industry trends? Here are some of the main CPG trends that not only have the potential to impact the industry but can also change the CPG industry for the better.

  1. Focus on sustainability: Modern customers are moving towards a sustainable lifestyle, and they want products that are sustainable — environmentally, economically, and socially. This can include ethically sourced raw materials, eco-friendly packaging, or ethical corporate conduct. And they are willing to reward ‘brands with a purpose’ while making purchase decisions.
  2. Building supply chain resilience: If the pandemic has taught us anything, it's that a resilient supply chain is the difference between success and failure. CPG demands, despite being lower than peak pandemic levels, will continue to grow. And recent studies have also predicted a massive shift in CPG demands, with opportunities worth $10 trillion coming from consumers in Asia over the next decade. Resilient supply chains will be instrumental in adapting to this shift and maintaining the momentum of growth. Collaboration and communication with supply chain partners will be imperative in this regard.
  3. An increasing rate of innovation: Shifting consumer demands and sustainability concerns have forced brands to innovative and reformulate their products to meet the expected quality standards. This will continue to impact the industry as the brands must be innovative in their product formulation and explore new ingredients to stay on top of emerging CPG market trends.
  4. Omnichannel presence: Over the past two years, the number of people purchasing consumer goods via e-commerce platforms and online marketplaces has grown exponentially. And companies have had to adapt to this change by building an omnichannel presence and reshaping their supply chains for agility and resilience. A strong digital presence will continue to be a key driver of growth.
  5. Using the DTC (direct-to-consumer) model to build customer relationships: CPG trends indicate a shift towards a DTC business model, a shift away from their traditional reliance on retail stores and marketplaces. This has allowed CPG companies to build and grow a meaningful relationship with their customers and customise their value offerings to meet customer demands in an increasingly digital retail landscape.
  6. Harnessing digital innovation: Digital innovation has been at the centre of every CPG market trend and has the potential to revolutionalise the industry. From productive planning and demand forecasting for effective inventory management and the internet of things for supply chain management to augmented and virtual reality solutions for better consumer experience, digital innovation has and will continue to reshape the CPG outsourcing industry and how customers interact with CPG brands.

For organisations on the digital transformation journey, agility is key in responding to a rapidly changing technology and business landscape. Now more than ever, it is crucial to deliver and exceed organisational expectations with a robust digital mindset backed by innovation. Enabling businesses to sense, learn, respond, and evolve like living organisms will be imperative for business excellence. A comprehensive yet modular suite of services is doing precisely that. Equipping organisations with intuitive decision-making automatically at scale, actionable insights based on real-time solutions, anytime/anywhere experience, and in-depth data visibility across functions leading to hyper-productivity, Live Enterprise is building connected organisations that are innovating collaboratively for the future.


How can Infosys BPM Help?

Infosys BPM Retail, CPG, and Logistics BPM services offer end-to-end solutions across functions. Infosys BPM offers BPM solutions across context, supply chain, customer-centric and analytics functionalities. Navigate the complexities of CPG industry trends with Infosys BPM Retail, CPG, and Logistics and deliver superior quality to your customers.


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