Staying on top of trends in your category is essential for staying relevant. While you should always remain true to your brand, evolving to meet your customers’ ever-changing preferences is equally important. By understanding what shoppers care about, how they shop, and how to reach them, you’ll be able to capitalize on these emerging trends in the years to come.
If you’re a food & beverage brand, here are 5 trends to take note of for your CPG marketing strategy:
1. The Rise of Private Label
As economic uncertainty lingers into 2025, high grocery prices remain the #1 financial concern for most Americans. In fact, almost three-quarters (74%) of consumers say they are very concerned about the cost of food and consumer goods (source).
This has led a growing majority of consumers (70%) to shift towards more cost-conscious options like private label brands.
For their part, retailers are eager to capitalize on this trend. Take Walmart, for example: in April, they launched Bettergoods, their largest private brand in 20 years. In addition to appealing to price-conscious consumers, Bettergoods also taps into another emerging CPG trend: health & wellness.
2. The Better-For-You Boom
Speaking of health & wellness, 82% of U.S. consumers consider wellness a top or important priority in their everyday lives (source). This shift is largely driven by Millennials and Gen Z, who purchase more wellness products than previous generations. As their purchasing power continues to grow, it’s clear that this change in buying behavior is here to stay.
Within the health & wellness space, there are a few sub-trends to watch (source):
- Healthy aging: 60% of people say it’s extremely or very important to purchase longevity products.
- Weight management: 60% of consumers are seeking weight management solutions, with over half aiming to lose 10+ pounds.
- Gut health: Over 80% of consumers globally consider gut health important, and over 50% anticipate making it a higher priority in the coming years.
3. Sustainability and Ethical Consumption
Concerns about climate change are prompting shoppers to demand more from the brands they support. For context, nearly nine-in-ten consumers say they are experiencing the effects of climate change in their daily lives (source).
Consumers are weighing the importance of various sustainable practices, with the top considerations being (source):
- Production methods and recycling (40%)
- Eco-friendly packaging (38%)
- Making a positive impact on nature and water conservation (34%)
The good news is that more than 80% of consumers are willing to pay more for sustainably produced or sourced goods. According to a recent PwC survey, consumers are willing to pay a 9.7% premium for sustainability (source).
4. Personalization and Data-Driven Marketing
From social media to retail media and in-store digital media, today’s path-to-purchase is more fragmented than ever. In fact, omnichannel shoppers now account for 86% of all CPG sales (source).
Today’s connected consumer leaves behind a substantial digital footprint. For brands willing to dive into the data, this presents an opportunity for greater personalization. Advanced analytics and AI make it easier than ever to deliver a tailored brand experience, from customized marketing messages to personalized product offerings based on consumer preferences and purchasing behavior.
Oh, and let’s not forget that customers expect more personalization!
According to McKinsey, 71% of consumers expect companies to deliver personalized interactions. Even more striking, 76% get frustrated when this doesn’t happen. The good news is that companies that excel at personalization generate 40% more revenue than average.
5. Digital Transformation and AI Integration
AI is here to stay, and brands must adapt or fall behind. For proof, look no further than Mondelez International, which is launching a “Transformation Office.” Among other things, this group will prioritize the implementation of artificial intelligence across its U.S. business.
Although the CPG industry has been slower to adopt AI compared to other sectors, a recent survey found that 71% of CPG leaders have incorporated AI into at least one business function (up from 42% in 2023) (source).
The same report revealed that, for food and beverage companies, the greatest value from AI lies in customer and channel management, specifically retail trade promotions. These promotions can represent up to 20% of revenue for manufacturers. AI can help analyze and optimize data from past promotions to reduce costs and improve performance (source).
So, what now?
All these facts and figures are great, but what should you actually do with this information? Should you drop everything to design new sustainable packaging? Probably not—at least for now. However, that doesn’t diminish the importance of these trends for the future.
As far as next steps, check out Rethinking CPG Marketing: 4 Principles to Stay Competitive and Relevant in 2025 and Beyond to get started future-proofing your brand strategy.
