4 CPG Trends to Keep an Eye on in 2024T
he consumer packaged goods (CPG) industry is undergoing significant transformation. Consumers are shopping across multiple channels. Companies are adapting to supply chain disruptions and prioritizing sustainability. By staying ahead of the trends and adapting to changing consumer preferences, CPG brands can navigate these challenging times and emerge stronger and more successful in the future.
Here’s a look at four CPG trends you should keep an eye on in 2024 as they continue to influence consumer behavior and company initiatives.
Companies Become More Digitally Focused
Consumers are increasingly discovering and shopping for consumer packaged goods across digital channels including eCommerce and social media. Younger generations are finding products via search and social media sites including TikTok, Instagram, and Facebook. Amazon Prime Day offers shoppers the opportunity to stock up on more CPG products, including household essentials, grocery, and pet care items for lower prices. The CPG industry will continue to pivot to digital in 2024, as budget-conscious consumers continue to look for product discounts and convenient shopping options.
Direct-to-Consumer Models Gain Momentum
The rise of eCommerce has opened doors for direct-to-consumer (DTC) models, allowing CPG brands to reach customers directly without relying on traditional retail channels. DTC models allow brands to gather consumer data, control the brand experience, and build direct relationships with their customers. CPG brands can leverage customer data and analytics to personalize their marketing efforts and deliver targeted messages and product recommendations to individual consumers. This approach allows brands to increase relevance and engagement, leading to higher conversion rates and increased customer satisfaction.
Unilever has deployed a fleet of Robomart on-demand mobile mini-marts to take its virtual direct-to-consumer ice cream storefront, The Ice Cream Shop, on the road. The company also partners with drone delivery company Flytrex to make Ice Cream Shop drone deliveries across all of Flytrex’s U.S. locations. Drone orders from The Ice Cream Shop can be delivered to front and back yards of residents’ homes with a flight time of less than three minutes.
Emphasis on Sustainability
Consumers are increasingly conscious of the environmental impact of their purchases. CPG brands are responding by developing eco-friendly products, using sustainable packaging materials, and implementing greener manufacturing processes. CPG companies will continue to prioritize sustainability next year by reducing plastic packaging, incorporating recyclable materials, and embracing eco-friendly practices throughout the supply chain.
Consumer goods executives plan to boost technology budgets by an average of 34% over the next three years in order to operationalize sustainability, according to a survey from IBM and The Consumer Goods Forum. Sixty-one percent of executives are purposefully aligning their sustainability and operational goals, with 77% agreeing sustainability investments will accelerate business growth. Technologies executives plan to invest in to aid sustainability efforts include automation, analytics, artificial intelligence, and intelligent workflows.
Tech-Driven Supply Chains
Supply chain disruption is one of the top fears among retail and consumer packaged goods executives, according to a study released by Genpact and HFS Research. Pandemic-fueled supply chain disruption is something that 70% of retail and CPG executives are still struggling to cope with. Evolving consumer expectations and eCommerce growth are also reshaping business models and enticing CPG companies to implement digital initiatives in order to increase supply chain efficiency and resilience.
Companies are leveraging technology to automate supply chain management, streamline logistics operations, and improve the delivery experience. As the CPG industry continues to expand across digital channels, companies will rely on delivery management solutions to automate, track, and monitor their delivery operations. Delivery management solutions provide all of the tools CPG companies need to manage their delivery operations, from the first mile to the last mile. Dynamic routing capabilities enable companies to easily adjust routes to accommodate unexpected changes or delivery delays. Real-time tracking allows customers to track their deliveries throughout the delivery process.
The CPG industry continues to evolve at a rapid pace, shaped by omnichannel growth, digital transformation, and a growing emphasis on sustainability. Companies that adapt to these trends and leverage new technologies to enhance their offerings and operations are poised to thrive next year and profit in the years to come.
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