- What Are Consumer Packaged Goods?
- An Overview of The CPG Industry
- The Digital Revolution in CPG
- Strategies for CPG Success in the Digital Age
- The Future of Consumer Packaged Goods
- Conclusion
In today’s fast-paced world, consumer packaged goods (CPG) are an integral part of our daily lives. But what exactly are consumer packaged goods, and how is this industry evolving in the digital age?
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What Are Consumer Packaged Goods?
Consumer packaged goods are items used daily by average consumers that need to be replaced very frequently due to its fast-moving nature. CPG products are typically found in brick and mortar stores with various options of purchase and price. But nowadays, advertisers and marketers have better and more effective ways of learning about online users’ needs and offering them specifically what they need at the best price. CPG provides a broad range of categories such as:
- Food and beverages
- Personal care and hygiene products
- Beauty products
- Toddler and baby products
- Household cleaning supplies
- Pet food and supplies
- Home appliances
- Home and garden
The CPG industry is characterized by high-volume sales, frequent purchases, and relatively low profit margins per unit. The products focus on scale, efficient supply chains, and effective marketing strategies to maintain profitability.
An Overview of The CPG Industry
The CPG industry has been going through various phases and growing steadily since the rise of the internet, but in the recent years it has spiked significantly:
The global CPG market reached $2 trillion in 2022, with projections suggesting it will grow to $2.8 trillion by 2024.
In the United States, the CPG sector represents 10% of the national GDP and employs over 20 million people, as reported by the Consumer Brands Association in 2023.
The COVID-19 pandemic significantly impacted e-commerce sales for CPG products, with Nielsen reporting a 35% increase in 2020.
The Digital Revolution in CPG
The internet has significantly impacted and changed how consumers interact with brands and make purchasing decisions. Here are some key statistics that highlight the importance of digital presence for CPG companies:
- 81% of consumers research products online before making a purchase decision, as they want to make sure it is the best possible choice.
- 74% of purchases are now digitally influenced, meaning consumers use online resources at some point in their shopping journey.
- Mobile devices account for 40% of digital minutes spent on retail shopping.
Strategies for CPG Success in the Digital Age
High-quality CPG Data
Relevant information on your target audience helps to harness the effectiveness of connecting with them and satisfying their needs. Use high-quality data that provide you with information on what Consumer Packaged Goods (CPG) is needed per specific user:
- Demographic data (age, gender, income, location)
- Intent history and preferences
- Interests on online browsing and shopping behavior
- Lifestyle and psychographic information
Implementing trusted and privacy-safe audience data
Having support in connecting with your audience is especially important whether there comes about:
- Enabling audience segmentation for precise targeting
- Enhancing understanding of user preferences and needs
- Ensuring compliance with data protection regulations (GDPR, CCPA).
- Implementing high-quality data and secure data with user consent.
- Partnering with reputable third-party data provider like OnAudience
Cross-Device Targeting and Attribution
Partnering with a Global Data Provider that delivers Consumer Packaged Goods can help you achieve better cross-targeting and attribution results in programmatic campaigns. As with consumers use multiple devices, we provide information on the overall customer’s device journey which helps you to:
- Creating seamless user experiences across different platforms.
- Attributing conversions accurately to improve ROI measurement.
- Achieve better customer experience and campaign results at profit.
The Future of Consumer Packaged Goods
As the digital world keeps transforming and introducing more and more advancements, the future of the consumer packaged goods industry in the digital space also looks very promising. There are several trends shaping the CPG industry:
- Personalization at Scale: The constant growth and developments in digital space will enable mass customization of products and marketing to connect with the target audience effectively.
- Subscription Models: More CPG brands will adopt subscription-based services for recurring purchases to attract users to buy from their online stores on a daily basis.
- Artificial Intelligence: AI will play a crucial role in optimizing everything from product development to supply chain management and understanding users at a deeper level.
- Sustainability Focus: Eco-friendly products and wider products offer will become a key practice and differentiator for CPG brands trying to reach their customers.
- Omnichannel Experiences: Seamless integration between online and offline shopping experiences is becoming increasingly important together with user data.
Conclusion
The consumer packaged goods industry is at a pivotal point in its evolution. As digital technologies continue to reshape consumer behavior and expectations, CPG companies must adapt and innovate to stay relevant and satisfying consumer needs in the digital space.
The future of CPG lies in creating seamless, personalized experiences for consumers across all touchpoints in the online and offline world, while maintaining the quality and value.
As the industry continues to evolve, one thing remains clear: the brands that successfully blend traditional CPG strengths with digital innovation will be the ones that thrive in this new era of consumer goods.
