Personalization in the CPG Industry

n today’s crowded retail market, standing out on the shelf, or in a digital shopping cart, has become increasingly challenging. Today’s consumers expect products, services, and marketing personalized to their unique preferences, needs, and lifestyles. With the rise of advanced data analytics, artificial intelligence, and digital engagement, CPG brands can deliver personalized experiences, communications, and products to resonate with consumers on a deeper level.

Here’s a look at how CPG businesses are personalizing the consumer experience.

As more consumers turn to online shopping, CPG companies are investing in new technologies to elevate and personalize the shopping experience, from tailored recommendations to customizable delivery options. Companies are using AI, advanced analytics, and new eCommerce sites to provide personalized content and product recommendations based on past purchases and preferences. This means customers are more likely to discover new items that actually fit their needs instead of scrolling through endless options and irrelevant offers.

Dog food brand Ollie is using the eCommerce platform Shopify to help it tap into new personalization capabilities while simplifying both the consumer-facing and back-end experience. Shopify’s personalization tools help Ollie better manage thousands of meal plan combinations tailored to a dog’s nutrition needs, taking into account their breed, age, weight, allergies and preferences. Ollie’s promotional strategies will allow employees to more quickly deliver relevant offers and content based on a dog’s stage in life and their favorite products. 

Businesses are rethinking the “one-size-fits-all” product line. Snack brands are offering customizable snack packs. While consumer demand for customizable beverages is growing. Sixty-five percent of adults customize their beverages, adding everything from sweeteners and creamers to fruit and syrups. Bold flavors are currently in high demand, with 44% of Americans trying a new beverage each month, according to a report from Keurig Dr Pepper.

Coca-Cola and Pepsi have developed premium, customizable beverages, giving customers more options to quench their thirst. PepsiCo is taking advantage of the trend toward premium sodas with its Drips line, which combines standard Pepsi products with add-ins and new flavors. While Coke’s vision for premium sodas is a drink based on a classic Coke product, like Sprite or Fanta or Coca-Cola, flavor customizations like syrups, flavors on the rims of cups, and inclusions like fruit and dairy additives.

Direct-to-consumer platforms give CPG brands a direct window into consumer preferences, cutting out intermediaries. Brands gain direct ownership of consumer data and relationships, enabling more sophisticated personalization including customizable subscription models, tailored bundles, and curated product recommendations. CPG brands can A/B test messaging, bundles, or promotions in real time, then scale winning strategies back into retail. This model allows businesses to not just sell, but also learn, creating feedback loops that improve personalization across channels.

Unilever recently acquired men’s personal care brand Dr. Squatch from private equity firm Summit Partners. The deal is part of the CPG company’s efforts to align its portfolio around premium and high-growth verticals and expand its product offerings internationally. Unilever is increasing its spending on social media and influencers to reach different global markets and consumer groups. The DTC business gives Unilever more first-party data to improve its personalized offerings, enhance targeted messaging, and deepen customer relationships.

Consumer packaged goods brands can no longer rely solely on mass marketing and standardized offerings to meet their customers’ needs. Delivering personalized products and experiences will help businesses build stronger loyalty, enhance customer satisfaction, and stay ahead of the competition.

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