Consumer Packaged Goods (CPG) Market Size, Trends and Outlook for 2022-2032

Report Highlights: Important Revelations

• The global consumer packaged goods (CPG) market is anticipated to witness substantial growth, with an value of USD 2,132.1 billion in 2022.
• This growth trajectory is projected reaching an value of USD 3,171.11 billion by the year 2032.
• Over the period from 2023 to 2032, the market is expected to experience a CAGR of 4.1%.
• Interconnected markets driving consumer packaged goods companies to explore international opportunities.
• North America’s CPG industry commands a $2 trillion valuation.
• Asia Pacific’s consumer package goods set to expand rapidly by 2030.
• Food and beverage reigns supreme in consumer packaged goods sales.
• Consumer packaged goods companies prioritize large offline retailers in operations.

Consumer Packaged Goods (CPG) Market Overview:

• • CPGs are essential for daily life, ranging from food and beverages to apparel and cosmetics.
  • The sector shows robust growth with an 8% year-over-year increase, reaching a projected $1.62 trillion in annual sales.

Interconnected Markets Driving Consumer Packaged Goods Companies to Explore International Opportunities

• CPG products, from food and beverages to personal care items, constitute essential and routine consumer purchases, driving consistent demand.
• The perishable nature of many CPG goods and the routine consumption patterns necessitates regular replenishment, ensuring a continuous market demand.
• The broad spectrum of CPG offerings, including food, clothing, cosmetics, and household items, caters to a wide range of consumer needs, expanding market reach.
• Shifting consumer preferences and evolving lifestyles influence the types of CPG products in demand, prompting innovation and adaptation by manufacturers.
• Technology integration in manufacturing, distribution, and marketing processes enhances efficiency, reduces costs, and improves overall supply chain management for CPG companies.
• The rise of online shopping platforms provides consumers convenient access to a wide array of CPG products, reshaping traditional retail dynamics and expanding market accessibility.
• Increasing health and wellness awareness influences consumer choices, driving demand for healthier food options, organic products, and environmentally friendly packaging within the CPG sector.
• As markets become increasingly interconnected, CPG companies are exploring global opportunities, leading to the expansion of their product distribution and market presence.
• Growing environmental consciousness among consumers propels CPG companies to adopt sustainable practices, including eco-friendly packaging, reducing emissions, and incorporating responsible sourcing.

Sustainability Initiatives:

• • CPG companies are adopting sustainability practices, particularly in packaging, to reduce environmental impact.
  • Holistic sustainability initiatives extend beyond packaging, including emission reduction and responsible sourcing.

Consumer Preferences Across Generations (2023):

• • Millennials (Gen Z) show the highest preference for CPG products (79%).
  • Generation X closely follows with a preference of 78%.
  • Boomers also have a substantial preference (70%), while the Silent Generation shows a relatively lower preference (57%).

Interconnected Markets Driving CPG Opportunities:

• • CPGs, being essential, drive consistent demand with routine replenishment.
  • A broad spectrum of CPG offerings meets diverse consumer needs, expanding market reach.
  • Technology integration enhances efficiency, while online platforms reshape retail dynamics.

Consumer Packaged Goods (CPG) Market Trends (2023):

• • Significant shift towards online marketing and e-commerce.
  • Embrace of eco-friendly practices, including sustainable packaging.
  • Direct-to-consumer expansion for enhanced brand loyalty.
  • Prioritization of supply chain resilience to mitigate risks.

North America’s CPG Industry ($2 Trillion Valuation):

• • North America’s CPG industry is valued at $2 trillion.
  • Industry leaders like Coca-Cola, Procter & Gamble, and L’Oréal play key roles.
  • Increased marketing expenditures, with 23% of CPG budgets dedicated to marketing initiatives.

Global Expansion and Opportunities in Asia:

• • Asia’s consuming class is rapidly expanding, with 3 billion individuals (70% of the population) projected to join by 2030.
  • Projections for specific countries like Indonesia and India show substantial growth in the consuming class.
  • Higher-income consumers are expected to lead future consumption growth.

Food and Beverage Dominance in CPG Sales:

• • Food and beverage represent 44% of online CPG sales, generating a projected $26,774 million in revenue.
  • Ongoing challenges include raw material shortages, production delays, and increased costs.

Offline Retail Dominance:

• • Large offline retailers dominate CPG transactions, with $297 average spending on food and beverage products.
  • Online spending is growing but remains at $64, highlighting the enduring significance of physical retail channels.

Top 10 Consumer Goods Companies (2023):

• • Nestlé, PepsiCo, LVMH, Procter & Gamble, JBS, Unilever, AB InBev, Tyson Foods, Nike, and Coca-Cola lead the industry.
  • Competition involves innovation, sustainability, and adapting to changing consumer preferences.

Recent Developments and Market Segments:

• • Chobani acquires La Colombe for $900 million.
  • Mars acquires UK Chocolate Brand Hotel Chocolat.
  • General Mills establishes Fera Pets through the acquisition of Veterinarians.
  • e.l.f. Beauty purchases Naturium for $355 million in shares and cash.

Consumer Packaged Goods (CPG) Market  Segments:

• • Segmentation by application includes food and beverage, household supplies, personal care, and cosmetics.
  • Distribution channels include online and offline.
  • Regions covered are North America, Europe, Asia Pacific, and LAMEA.