Consumer Packaged Goods (CPG) Market size is set to grow by USD 1280.8 bn from 2024-2028,increasing sales of cpg products from e-commerce boost the market- Technavio

NEW YORK, March 27, 2024 /PRNewswire/ -- The global consumer packaged goods (cpg) market size is estimated to grow by USD 1280.8 bn from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 4.49% during the forecast period. The CPG market is experiencing significant growth, with e-commerce sales projected to reach 40%-42% of global retail sales by 2027. Urbanization, rising disposable income, and changing consumer preferences are key drivers. E-commerce enables direct-to-consumer sales, personalized communication, and real-time market insights. Vendors use targeted advertising and promotions to reach specific segments. Challenges include volatile commodity prices, tight competition, and regulatory issues. Sustainability, personalization, and innovation are important trends.

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Segment Overview

This consumer packaged goods (cpg) market report extensively covers market segmentation by Product (Food and beverages, Personal care and cosmetics, Household supplies, Pharmaceuticals, Others) Distribution Channel (Offline, Online) Geography (North America, Europe, APAC, South America, Middle East and Africa)

Market segmentation by Product
The CPG industry, encompassing household goods and food & beverages, faces significant changes due to rising disposable income, increasing urbanization, and changing consumer preferences in a global population. Longer shelf lives of packaged goods align with sustainability goals, reducing food waste. However, the future prospects are complex. Rising competition, volatile commodity prices, and regulatory challenges pressure companies. Private label brands and e-commerce platforms, including personalized fragrances and skincare products, gain popularity. Sustainability and personalization are key trends, but tight competition and price sensitivity persist. Retail consolidation and supply chain disruptions add challenges. Commodity price volatility and economic uncertainty further complicate matters. Emerging nations and rising per capita income present opportunities, but pollution, incorrect labeling, and food safety concerns remain challenges for the CPG industry.

Geography Overview

The North American CPG market, encompassing household goods and food & beverages, is thriving due to rising disposable income, urbanization, and changing consumer preferences. The global population's increasing health consciousness fuels demand for organic and healthy products. Convenience remains a key driver, with the aging population seeking readily available options. However, challenges loom, including volatile commodity prices, tight competition, price sensitivity, and regulatory challenges. Private label brands, e-commerce, sustainability, and personalization are shaping the industry's future. Consumer awareness, innovation, and packaging solutions are crucial in emerging nations. Despite economic uncertainty and supply chain disruptions, the CPG industry continues to evolve, addressing changing trends in food & beverages, clothes, and personal care. Pollution, incorrect labeling, and food safety concerns persist, necessitating continuous innovation. 

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• The CPG market is being revolutionized by D2C brands, cutting out intermediaries for direct consumer engagement. This streamlined supply chain allows for product control, personalized marketing, and valuable consumer data. Household goods, food & beverages, clothes, and personal care face rising competition, urbanization, changing preferences, and regulatory challenges. E-commerce, sustainability, and innovation are key trends, with consumer awareness and packaging solutions shaping the future.
• The CPG market faces challenges from supply chain disruptions due to global events, causing delays, shortages, and increased costs. Household goods sectors, including food & beverages and clothes, are particularly affected. Inflationary pressures from rising commodity prices, transportation costs, and labor expenses add to the strain. Urbanization, changing consumer preferences, and e-commerce growth present opportunities, but tight competition, price sensitivity, and regulatory challenges persist. Sustainability, personalization, and innovation are key trends.

Insights on Market Drivers, trends, & Challenges, historic period(2018 - 2022) and forecast period(2024-2028)- Request a sample report!

Market Report Analysis

In the dynamic and evolving Consumer Packaged Goods (CPG) Market, household commodities and clothes continue to be in high demand due to the rising population rate and increasing urbanization. Consumer awareness, innovation, and packaging solutions are crucial factors shaping the industry's future prospects in emerging nations. Per capita income and disposable income are key drivers, leading to challenges such as volatile commodity prices, regulatory issues, and rising competition. Sustainability and reducing pollution are essential concerns, with incorrect labeling and pollution being significant challenges. Private label brands, e-commerce, personalization of products, and online shopping are disrupting traditional business models. Personalized fragrances and skincare products are emerging trends, catering to changing consumer preferences. Regulatory challenges and volatile commodity prices remain significant hurdles, but the future looks promising with continued innovation and adaptation to consumer needs.

Market Research Overview

The Consumer Packaged Goods (CPG) market is a significant sector in the global economy, encompassing a wide range of products from food and beverages to personal care and household items. Companies in this industry produce and distribute commodities that are typically mass-produced, branded, and sold through a distributor or retailer to the end consumer. The CPG market is characterized by intense competition, rapid innovation, and a growing focus on sustainability and health-conscious offerings. In recent years, e-commerce has disrupted traditional sales channels, leading to a shift towards online sales and direct-to-consumer models. Consumers are increasingly seeking convenience, affordability, and personalized experiences, driving demand for new product categories and delivery methods. The CPG industry is also subject to various regulations and trends, including labeling requirements, food safety standards, and changing consumer preferences. Overall, the CPG market is a dynamic and evolving landscape, requiring companies to stay agile and responsive to shifting consumer demands and market trends.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Product
• Food And Beverages
• Personal Care And Cosmetics
• Household Supplies
• Pharmaceuticals
• Others
• Distribution Channel
• Offline
• Online
• Geography
• North America
• Europe
• APAC
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio