The US consumer goods and services industry is the largest in the world, estimated at $635 billion. Also referred to as Consumer Packaged Goods (CPG), the industry includes appliances, toys, furniture, and home furnishings, recreational vehicles, boats, motorcycles, games, gifts, school and office products, jewelry, sporting goods, musical instructions, and processed foods and beverages (water, juice, beer, wine, spirits, and other non-alcoholic beverages).
The largest US-based companies in the CPG market include Pepsi Co, Kraft Heinz, Mondelez International, General Mills, Conagra Brands, Land O’Lakes, and Kellogg.
Despite a challenging year for the US economy, the CPG category continued to see growth in 2020. The consumer has started to change their consumption habits but did not stop consuming.
TRENDS & CHALLENGES
The consumer packaged goods industry in the US is undergoing significant changes with the movement from retail to online purchases. Coresight Research has identified 10 major trends:
health and wellness brands
brands are becoming more agile and leaner
male grooming is evolving to male beauty
adaptation of direct-to-consumer approach
digitalization and technology-enabled brands
push for premium
A, A and A for Amazon
lifestyle apparel and accessories brands tapping in the beauty category
The CPG industry enters 2021 still with uncertainties surrounding the return to retail shopping, accelerating the shift to e-commerce. Brands will have to reset their go-to-market strategies, prioritize channels, establish product portfolios, position their brands and deploy service models that favor the behavior of online shoppers. The digital transformation is forcing companies to improve their e-commerce and shopping platforms, transforming internal capabilities and creating efficiencies with technology – pushing investments in enterprise systems, artificial intelligence (AI), and robotic process automation (RPA).
While the last two decades were characterized by globalization, low-cost supply, and minimal inventory, the new emphasis is on building resilience in the supply chain and investing in a sustainable future.
Disclosure: These key performance indicators are based on industry averages for a company with $10 million in revenue. The KPIs are not specific to the operational performance of your company or your sub-sector.
The information contained has been obtained from different sources deemed reliable, including DealStats, Deloitte, Dun & Bradstreet, and Business Reference Guide. Pacifica Business Brokers, Inc. does not make any representation or warranty as to the accuracy of the data. PBB is a mergers and acquisitions (M&A) advisor and business broker.