Beyond the Shelf

Trends Redefining CPG Growth

Publicis Media Data Intelligence, May 2025

INTRODUCTION

The consumer-packaged goods (CPG) industry is undergoing a

fundamental reset. Once defined by predictable growth and incremental
innovation, the category now faces accelerated disruption—from shifting
consumer expectations to cost volatility and mounting competitive
pressure. Traditional growth levers are no longer enough.

Consumers today are recalibrating what value means—balancing price

sensitivity with lifestyle aspirations. They are looking for brands that feel
fair, functional, and aligned with their values. Meanwhile, digital
commerce and real-time feedback have raised the bar for
responsiveness and relevance.
To help brands navigate this evolving landscape, this report explores
three critical forces shaping the future of CPG. Use this document to
engage clients, exchange ideas with colleagues, and stay ahead of the
shifts defining the future of consumer-packaged goods.

2
Agenda

Inflation
4 Rising costs, rising consumer expectations.

Innovation
9
Innovation is shifting from breakthrough to betterment

Inspiration
13
In a sea of sameness, growth will come from bold moves

3
INFLATION

The New
Consumer Equation
Inflation has dramatically changed the consumer-packaged goods
(CPG) landscape, forcing both companies and consumers to rethink
their strategies. From 2021 to 2024, persistent inflation pushed
companies to raise prices frequently to maintain growth,
significantly affecting consumer sentiment and purchasing habits.
Even with inflation rates gradually declining, consumers are still
struggling with stubbornly high prices. They are increasingly turning
to affordable alternatives and navigating new economic
uncertainties, such as the potential impact of tariffs., prices remain
stubbornly high, prompting consumers to seek out affordable
innovations and navigate uncertainties like potential tariff impacts.

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Still Feeling the Squeeze
Consumers have faced five turbulent years of rising prices, driven by the pandemic and geopolitical tensions. Although
inflation has slowed, high price levels persist.

Even as price pressures ease, consumers still Brands pushed prices too far and
feel economic uncertainty consumers pushed back
[4]
53%
[1] [US]
[3] 75%
feel pessimistic about the of retail sales growth in 2024
economy, keeping came from price increases rather
consumer optimism below than higher sales volumes.
prepandemic levels.
[5]
[2] 64%
59% of CPG executives agree that
of consumers in Germany despite inflation easing, consumers
are adjusting their 39% of consumers prefer low-cost
still negatively compare current
alternatives over premium brands
purchasing behavior in prices to pre-pandemic levels. when purchasing food. [2]
response to inflation.

• In advanced economies inflation is stabilizing near 2%, while developing • From 2021 to 2024, CPG companies frequently raised prices to offset
countries like Brazil and Turkey face ongoing inflation due to weak rising costs; however, continued hikes are now causing consumer
currencies and strong domestic demand.[3] frustration and pushing them to trade down or reduce spending.

• Inflation has sharpened consumer vigilance, transforming everyday • Currently, 86% of consumers express frustration with overall grocery
decisions into calculated pursuits for affordability and value. expenses, particularly citing high food and beverage prices (80%). [6]

Sources: [1] McKinsey, [2]Statista, [3]Euromonitor, [4] Bain & Co, [5]Deloitte, [6]RRD 5
Inflation down, value up
Inflation has triggered a stalemate: brands are saving to protect their profit margins and consumers are saving to protect
their wallets.

Budget brands hit hardest: inflation drives up New consumer habits stick around,
prices faster than premium even as inflation slows
[3]
[1]
Fake coffee" is an affordable,
coffee-like beverage made from
coffee husks, corn, and barley.
• Consumers remain highly
cautious about grocery
spending.

• Only 17% of consumers view

their go-to snacks as a
necessity on their grocery
list. [3]

Coffee Fake Coffee • Trump's tariffs could further

pressure grocery budgets,
• This "cheapflation" phenomenon has permanently altered price perceptions, increasing price sensitivity
forcing both businesses and shoppers to rethink value strategies in a high- among consumers and
cost era.* intensifying demand for
affordable alternatives.
• High prices on essentials have pushed consumers toward affordability over
quality—highlighted by Brazil’s acceptance of 'fake coffee’. [2]

Sources: [1] Harvard, [2] Mintel, [3]eMarketer 6

 Tariff impacts on CPG
Consumer goods companies rely heavily on imports for raw materials and packaging, making
them vulnerable to tariffs. If Trump’s 2025 tariff plan moves forward, it will raise costs across
the industry—impacting supply chains, production, and retail prices. Everyday products like
food, drinks, personal care items, and household goods are at risk because they depend on
global suppliers. Consumers react differently to price
increases depending on their income,
preferences and perceived value, but
The hardest-hit products will be those with high import reliance, particularly from China,
essential goods such as food and personal
Mexico, and Canada. Key categories facing higher costs include: care products are the most price sensitive.

As demand for these goods is elastic, rising

prices push shoppers towards cheaper
Food and Beverage Products [6] Personal Care and Household Products Raw Materials alternatives. They may switch brands, buy
less or opt for cheaper alternatives.
• Seafood: The U.S. imports 80% of its seafood • Many personal care items and • Steel and Aluminum: Tariffs
(fish, shrimp) from high-tariff countries like India household goods rely on imported raised to 25% on these metals
(26%) and Indonesia (32%), driving up prices. raw materials and packaging impact packaging and
components, especially from equipment costs in the CPG
• Coffee: About 80% of U.S. coffee comes from China, which faces a 10% tariff on sector. [2]
Brazil and Colombia, facing ~10% tariffs, imports. [2]
increasing costs. • Black Pepper and Other Spices:
• This raises production costs and Imported spices, which cannot
• Wine & Alcohol: Tariffs up to 20% on imports retail prices in these categories. be grown domestically, are
from Mexico and the EU are raising beverage subject to increased tariffs,
prices. affecting food product costs.

Sources: [1]NPR, [2] Attack

Brand Examples

BRAND INSPIRATION

Responding to inflated egg PepsiCo plans to roll out Scott & Jon’s increased their
prices in March 2025, Kraft more variety in snack sizes, shrimp and salmon bowl
Heinz launched Jet-Puffed's including single-serve options sizes by 20% without raising
affordable "Dip and Decorate and smaller multipacks, to prices, reinforcing their
Dozen" marshmallow kit broaden its appeal across commitment to value and
exclusively at Walmart. different budgets. quality amid inflation.
[link] [link] [link]

THOUGHT STARTERS
• Today’s shoppers aren’t just chasing low prices—they’re chasing value they can feel. How is your
brand delivering meaningful value that fuels both trust and spend?

• Categories like snacks, once considered indulgent or comforting are now being deprioritized.
This signals a shift in how consumers justify nonessential spending. Can your brand reposition
from “nice-to-have” to “worth having”?

• Tariff threats are reviving anxieties around supply chains and price volatility. Is your pricing
strategy resilient enough to weather the narrative of “unnecessary extras”—or will consumers
see you as the first to go?

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INNOVATION

The Quiet
Reinvention of CPG
In today’s CPG landscape, innovation is undergoing a recalibration.
While traditional product launches have slowed globally—particularly
in mature markets like North America—CPG companies are pivoting
toward smarter, consumer-first approaches. The industry’s high point
lies in its embrace of AI, data-driven personalization, and sustainable
design, which are reshaping everything from R&D to supply chains. At
the same time, innovation fatigue, fragmented consumer demands,
and economic caution are contributing to fewer breakthrough
launches.

9
Redefining Innovation in CPG
CPG's era of predictable growth is over. To survive today's disruption driven by new consumer needs and tech, companies must
move beyond traditional playbooks and embrace innovation as a critical driver for resilience and relevance.

Emphasis shifts to renovation amidst Evolving consumer priorities are

Innovation slowdown reshaping innovation needs
Health and
Renovation Packaging is the new Sustainability Glocalization
wellness
[1] innovation frontier
65% of launches Smol reimagines laundry Pastoret’s kids’ yogurt Lays has embraced global
with pods made from reflects the shift toward tastes with launches of
(2024) vs. 58% (2019) 20% of all new CPG
biodegradable ingredients healthier packaged foods, culturally inspired flavors
launches focused on new
and minimal packaging, with 30% less sugar, like Greece’s Tzatziki,
packaging in 2024. [1]
meeting demand for natural fruit, and milk India’s Masala, and
greener cleaning solutions. from free-range cows. Korea’s Honey Butter.
Innovation 60% of consumers seek
[1]
functional package
dropped to 35% (2024) innovations that help
from 42% (2019) keep food fresh. [1]

• The pandemic, conflicts, and economic shocks have constrained innovation, • Sustainability, health & wellness, and Glocalization are now top consumer
pushing companies to prioritize product reformulation over R&D due to priorities. Brands must innovate in alignment with these values.
rising costs and supply chain issues limiting brand evolution.
• 250+ new CPG brands enter the market yearly, and legacy brands are
• This shift highlights a growing trend towards packaging innovation as losing ground. Brands that don’t innovate risk falling behind. [2]
opposed to the development of entirely new products in the CPG sector.

Sources: [1] Mintel [2] SOSA 10

AI Takes The Lead: The New Face Of Innovation In CPG
AI moved from pilot programs to powerhouse strategy in CPG—brands are moving beyond traditional marketing and product
innovation to leveraging AI to create immersive, consumer-first experiences that truly resonate.

Top brands are using AI to power

AI is surging in importance for CPG innovation
Consumer-first innovation
[1]

The gen AI market in the

[5]
CPG sector is expected to
reach $5.4 billion by
71%
2033. [1] of CPG leaders
use AI in at least
The market is projected to one business
grow at a compound area
annual growth rate of
9.5% from 2024 to 2033. L’Oréal: AI diagnostics Coca-Cola's Y3000:
[1] to personalize beauty AI + consumer insights
experiences. [4] = futuristic flavor. [3]

• CPG companies are rapidly integrating AI to drive innovation in product

development and consumer engagement. • AI helps CPG brands understand market shifts early and personalize
faster.
• Over half (55%) of CPG marketers see AI technology as retail media’s
biggest opportunity—outpacing personalization, shoppable content, and in- • From predicting emerging trends to testing new flavors, AI is transforming
store tech. [2] how brands deliver relevance, immersion, and sustainability at scale.

Sources: [1] Infosys [2] eMarketer [3] CocaCola [4] Loreal [5] McKinsey 11
Brand Examples

BRAND INSPIRATION

Chinese brand Yili uses Trip Drinks and app Calm have e.l.f. Beauty fosters trust across its
recycled light-blocking PET launched “Canned Calm” in the entire product range through its
waste bottles to make light- US—a collaboration blending inclusivity initiatives for the blind
blocking heat-shrink labels for functional drinks with community, which include audio QR
its Plant Selected oat mindfulness for a unique codes and representation by figures
milk product. wellness experience. like Tas Pagonis.
[link] [link] [link]

THOUGHT STARTERS
• Innovation does not necessarily have to be complex. Yes, there is a need for highly technical
materials and components, but there is also a need for innovation that creates solutions rather
than disrupting consumers' lives. Is there room for your brand to innovate in ways that make
consumers' lives easier?

• As AI sharpens the depth and precision of consumer insights, how can CPG brands use real-time,
data-driven understanding to fuel both personalization and purposeful innovation?

• While smaller brands are quick to respond to new needs, larger companies often hesitate in the
name of efficiency. But in a market where relevance drives growth, how can your organization
rethink processes to enable faster, consumer-centric innovation?

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INSPIRATION

Inspiration for
What’s Next
Inspiration is where strategy meets possibility.
In this final section, we spotlight some signals
shaping where CPG is headed.

13
Sustainability is a second driver Mondi's Hug&Hold paper-based multipack handle
carrier and belly band replaces plastic shrink wrap and
provides an easy-to-see and convenient way to securely
Sustainability remains important to consumers, but affordability and quality carry multiple beverage bottles.
now drive purchases more. Still, they expect brands to act responsibly through
eco-friendly packaging, transparency, and education. When sustainability is
seen as added value, it increases loyalty and influences purchasing decisions.

Consumer trust is shifting Coca-Cola trialed label-free Sprite bottles in the UK to

49% of consumers believe simplify recycling. Made from clear, 100% recycled plastic,
Over 60% of consumers tried the bottles featured embossed logos and laser-engraved
to positively impact the brands and companies are most
responsible for improving info—removing the need to separate labels and reducing
environment in 2024, packaging waste.
consistent since 2020. [1] environmental sustainability —
up from 36% in 2023. [2]

Green must meet great

In 2024, P&G launched Tide Evo, a fiber-based, tile-
format detergent designed for cold water use. Packaged
51% are willing to pay more Brands with clear in FSC-certified paper, it offers a compact, sustainable,
for sustainable products, but sustainability claims and convenient alternative that reduces energy use while
only when paired with quality grew 1.5% faster than non-
meeting consumer demand for performance and eco-
and value. [2] sustainable competitors. [1] conscious home care.

Packaging drives perception

Over 50% of consumers trust 42% of people rely on a

eco-friendly/environmentally- product's packaging to learn if Colgate-Palmolive has seen success marketing
conscious labels (2024). [1] a brand is environmentally the two-in-one value and cleaning efficacy of Fabuloso 2X
sustainable. [2] before its sustainability benefits.

Sources: [1]Euromonitor 2025 Trends, [2] Mintel Everyday Sustainability 14

The rise of DTC Magic Spoon, founded in 2019, has disrupted the
traditional cereal market by offering high-protein, low-carb,
Direct-to-consumer (DTC) has become a core strategy for CPG brands, reaching and zero-sugar cereals that cater to health-conscious
consumers seeking nostalgic flavors.
$300B in global e-commerce sales in 2024—up 155% since 2019.[1]
For consumers, DTC offers convenience, exclusive access, and deeper
connections with purpose-driven brands, aligning with rising demands for
health, sustainability, and personalization.

Feastables has emerged as a standout brand, blending

Health and Wellness Focus premium chocolate with innovative marketing and
Consumers are increasingly seeking "better-for-you" products— community-driven engagement. Founded with the mission
organic, plant-based, and functional. CPG brands are leveraging to make high-quality sweets accessible, Feastables offers
DTC channels to engage health-conscious shoppers with a diverse lineup—from classic to gourmet flavors.
targeted wellness offerings and education.

Omnichannel and Multi-Channel Marketing Launched in 2022 by influencers Logan Paul and KSI,
CPG brands are blending digital and physical channels—using PRIME quickly disrupted the U.S. sports drink market,
generating $111 million in sales (including $81M e-
social media, influencers, and e-commerce—to create
commerce and $30M DTC) in its first year—surpassing
seamless, flexible shopping experiences across all touchpoints. Coca-Cola’s Powerade and challenging BODYARMOR.

Sustainability and Conscious Consumerism Native, acquired by P&G, exemplifies how legacy CPG
CPG brands are using eco-friendly packaging and ethical companies can successfully integrate mission-driven DTC
brands. By combining Native’s customer-centric formulation
practices to attract conscious consumers—making it a
process with P&G’s distribution muscle, the brand scaled
key DTC differentiator.
rapidly while maintaining its core positioning. The acquisition
also provided P&G with critical insights into younger,
ingredient-conscious consumers.
Sources: [1] Euromonitor 15
Hyper Personalization In April 2025, Papa John's has partnered with Google Cloud
to enhance customer experiences using AI technology. This
collaboration focuses on improving operational efficiency
and personalizing customer interactions, ultimately aiming
The future for CPG companies lies in mass personalization—moving beyond
to deliver a more seamless pizza ordering experience.
the one-size-fits-all approach. Consumers increasingly seek products with
personalized benefits, like skincare-infused makeup or tailored nutrition.
Brands embracing this trend by offering premium, customized solutions are
set to capture loyalty and growth.
Sephora employs advanced personalization strategies by
leveraging zero- and first-party data to create holistic
consumer experiences. Their omnichannel approach
Consumers expect brands to know them guarantees a consistent, personalized brand experience for
every customer, whether they shop online or in-store.
62% of US beauty and personal 81% seek personalized
care buyers are interested in experiences, while 70% value
hyper-personalised products, companies that acknowledge their
and 28% would be willing to purchasing history to enhance
pay more for them. [1] interactions. [2]
M&M’s exemplifies product personalization and
branding through its My M&M's program, which lets
customers customize their M&M's with logos,
Health and beauty go personal messages, and photos. This approach transforms
customers into co-creators, boosting engagement and
crafting a unique, memorable experience.
63% of UK adults aged 16- 77% of Americans are open to
44 desire more beauty trying a new weight loss
products tailored to their method. Personalized nutrition
age group. [1] and fitness are at the top of
their interest list. [3]
Bella and Duke offers a subscription service for
personalized pet food, focusing on raw and natural
nutrition customized to meet each pet’s needs. Their
veterinarian-approved meal plans are designed to boost
health and happiness.
Sources: [1] Mintel [2] Forbes [3] hims & hers
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APPENDIX

Brand cases

17
Brand Examples

Sustainability Innovation Innovation Value Sustainability Innovation Health

Noodees is an innovative personal Makro, a supermarket chain,

Chatkeens Green Gram OPTAVIA ASCEND is a new line
care brand redefining hygiene with created life-saving stickers for the
Snack is an Indian product that of high-protein, fiber-rich mini
its eco-friendly, waterless powder- fruit and vegetables that are most
uses resealable packaging with meals designed to support GLP-
to-foam soaps. Designed for wasted in Colombia to show people
a 'reseal to keep fresh' 1 users with weight
sustainability and convenience, that they can be utilized at any
message, emphasizing the maintenance, muscle
Noodees offers products that are stage of ripeness to help minimize
freshness-retention benefits. preservation, and digestive
not only effective but also wastage and increase brand
health.
environmentally responsible. awareness.

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Brand Examples

Sustainability Innovation Innovation DTC Value Personallzation

Yeo Valley Yeokens is a customer

WagWell’s Paw Protector balm Noshinku has a line of
For Earth Month, Grove Co. rewards initiative that allows
is the first pet care product personalised hand sanitizer
launched the 5% Collection—mini customers to collect points called
certified microbiome-friendly by packs that combine
versions of its products in 5% size Yeokens. Additionally, some products
MyMicrobiome. Made with functional utility with stylish
bottles, highlighting the tiny come with unique codes printed on
100% natural ingredients, it aesthetics.
impact of plastic recycling and the packaging. By entering these
protects and moisturizes dogs’
urging consumers to go beyond codes on the website or mobile app,
paws, noses, and elbows.
plastic. customers can earn extra Yeokens.

19
Brand Examples

Personallzation Innovation Sustainability Value Sustainability Value Innovation Glocalization

Maison 3 In 1 is a three-in-one Field Day Lavender Liquid Dish Pringles offers "A Taste of
customisable lipstick that allows Detergent is among a growing The Ariel Cold Water Laundry Local" flavor variations that
users to choose three shades out genre of homecare product Detergent helps reduce energy reflect regional cuisines. In
of 60,000 potential colours. The positioned on both its natural use by up to 60%. It offers a Australia, two popular flavors
infinitely refillable case holds three status and low price. 53% of sustainable benefit that adds in this series are Japanese
lipsticks in recyclable glass vials consumers with household value without increasing cost. Sticky Teriyaki and Caribbean
with a rotating selection incomes <$50K cite saving money Spiced Chicken.
mechanism. as a top homecare goal.

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REFERENCE MATERIAL

For More Information

Bain & Company: Consumer Products Report 2025: Reclaiming Relevance in the Gen AI Era
Deloitte: Consumer Products Outlook – 2025
eMarketer: Impact of Tariffs on US Businesses
Euromonitor: Digital Native Brands – The next frontier of CPG Disruption
INES REIS
Mastercard: Economic Outlook - 2025 [email protected]

McKinsey: The ‘value now’ consumer: Making sense of US consumer sentiment and spending
McKinsey: The State of Grocery Retail Europe 2025
Mintel: Everyday Sustainability – US 2025
Mintel: Packaging Trends 2025
Nielsen: Beyond Vitality: Redefining CPG innovation for incremental growth
Statista: The New Consumer Reality 2025
WARC: Consumer Packaged Goods – Industry Snapshot – Aug 2024
KHUSHBOO PANDEY
[email protected]

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 Beyond the Shelf
Trends Redefining CPG Growth

Publicis Media Data Intelligence, May 2025