Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee ("DTTL"), its network of member firms, and their related entities. Challenge to current model: Channel strategy and product portfolio shift to meet new price points. Consequently, attitudes toward packaged foods such as an “increasing desire for real food” and “using food as a way to attain and maintain good health” are highly relevant for the pet food category.26 In March 2014, Nestlé Purina introduced “Just Right by Purina,” a brand that allows US consumers to create a customized blend of dog food online and have it home-delivered.27 To evaluate the nutritional needs of the pet, Nestlé Purina’s website asks consumers to input details such as breed, gender, age, weight, activity level, and coat condition. The likely consequence: Core consumer segment(s) will experience minimal income growth at best. The uncertainty over Brexit has further dented business investment in the United Kingdom. Meanwhile, 59% of US digital buyers say they’d be interested in using grab-and-go stores that feature smartphone-based self-checkout. As you look at the many other categories that consumers are in, there are more and more customized features that are being offered every day.”30 The company is currently working to enhance the product’s personalization possibilities (for example, package sizes, flavors) and ordering features (for example, automatic replenishment); it is also testing a similar solution for cat food.31. Developing data analytics and intelligent decision-making capabilities. As a result, the latter could be overlooking the potential of technology. The digital transformation of all industries has been accelerated due to challenges such as radical demand shifts, supply chain reconfiguration, seasonal workforce interruptions, and the repurposing of manufacturing capacity. The rise of digital insurgents and new business models has been transforming the consumer products industry. With the World Dairy Innovation Awards 2020 now open for entries, FoodBev takes a look at five trends that are shaping the dairy industry today. David Zax, “Jerky Week, part I: How Slantshack scales artisanal jerky,”. Savvy companies are already increasingly tapping into consumers for ideas on new products and product variants. “We used to be able to be successful serving just core consumers in grocers and mass merchandisers, but now we need to be present and deliberate in fragmented consumer segments and more channels.”—Packaged goods sales executive Our first uncertainty for 2020 relates to the economic environment in the United States—specifically, whether the continuing recovery uniformly helps consumers at all income levels. There are many drivers fueling this volatility, including rising food demand, constrained food supply, volatile energy costs, and global economic uncertainty. International Monetary Fund (IMF) food and beverage commodity indices. Many of the drivers appear to be enduring, while others appear temporary or episodic in nature. Copy a customized link that shows your highlighted text. Taryn Luntz, “Already facing supply crises, corporations craft resource plans,”, Timothy Hay and Evelyn M. Rusli, “Food startup Hampton Creek raises $90 million led by Horizons, Khosla,”, Hay and Rusli, “Food startup Hampton Creek raises $90 million led by Horizons, Khosla.”. Anupam, Deloitte Services LP, is the Research team leader for Deloitte’s Consumer & Industrial Products industry practice. Rakesh Kochhar and Rich Morin, “Despite recovery, fewer Americans identify as middle class,” Pew Research Center, January 27, 2014, http://www.pewresearch.org/fact-tank/2014/01/27/despite-recovery-fewer-americans-identify-as-middle-class/. In particular, they are moving away from a “resource procurement” approach to sourcing to a “resource preservation” approach, which means thinking about each resource used and ways to develop or replenish future supply. Our consumer products practitioners combine deep industry expertise and experience in all major regions and functional areas with proven proprietary approaches and rigorous fact-based analysis. Collecting data is just the first step. Venture capitalists and other investor groups have been increasingly investing in start-ups that focus on new ways of developing food, often seeking to produce healthy food more sustainably and efficiently. Across the entire consumer products industry, digital transformation continues to be an important strategic effort. Food and Beverage . Leveraging consumer insights to guide investment decisions. Consumer Electronics Market size valued at USD 1,100 billion and is expected to register over 3% growth between 2017 and 2024. … Consumer Products. For example, packaged goods executives seem to be lagging retailer executives in technology, and retailers may not be fully appreciating the impact of the changes in consumer preferences and demographics. We are currently in the longest period of economic expansion in US history. USA Today, “Purina offering personalized dog food,” November 1, 2014, http://www.usatoday.com/story/money/business/2014/11/01/purina-offering-personalized-dog-food/18317543/. The downward trend in profitability for both big and small players suggests the need to revisit the relevance of traditional R&D and innovation models. RETAIL. Digital impacts how you manage your business, engage with consumers, manage retail relationships, sell product, transform your supply chain, and how you enable strong customer service. The report explore five undercurrents that may impact the consumer product industry in 2020. The interviews covered four topics: trends in consumer demographics, behaviors, and attitudes; retailer and channel dynamics in consumer products; the impact of technology on consumer engagement, the shopping process, and business models; and commodity supply management. Leaders will have to consider balancing the need to invest in technologies to keep up with increasingly empowered consumers and being financially prudent in their investment strategy. Barb Renner, Increasing penetration of smartphones across the globe is expected to drive the market growth. This box/component contains code needed on this page. Each consumer report offers the primary research and in-depth data found in our market data reports alongside expert insights, trend analysis and market forecasting. These dynamics have the potential to undermine not only historical sources of profitable growth but also historical sources of competitive advantage, and render traditional operating models obsolete. Additionally, recent social media listening research indicated that when consumers talk about food safety in the United States, only 14 percent of the discussion is about basic food safety, while the rest is about a broader set of topics, such as health and wellness.43 Within the health and wellness and food safety discussions, a significant number of posts were about transparency (8 million posts) and sustainability (2 million posts). CPG companies can prepare themselves for a range of possible futures by harnessing technology, reinventing brands, and exploring new business models. Kim Porter, Even leading CPG companies still lag behind industries like automotive and medical products in embracing design-to-value. And during post-purchase, companies can take advantage of technology to extend the product experience as well as to build a life cycle view of consumers through sophisticated data analysis. Partner, Consumer Products Industry Leader Email Twitter LinkedIn. Change was gradual and incremental. Consolidation, brand erosion, technological innovation, retailer growth, and the emergence of digital competition have impacted the composition of today’s largest global businesses. Prior to leading Consumer, she led our Consumer Products sector. The digital transformation of all industries has been accelerated due to challenges such as radical demand shifts, supply chain reconfiguration, seasonal workforce interruptions, and the repurposing of manufacturing capacity. Continuous investments by industry players in R&D for development of new consumer electronic products including smartphones, smart wearables, and home appliances will drive the market growth. Fashion/home. See Terms of Use for more information. As we look towards the next decade, the consumer products industry will continue to feel the impact of an evolving global economy, a shifting geopolitical landscape, and changing consumer demographics and expectations. Hand Sanitizer Market 2020-2024- Featuring 3M Co., Godrej Consumer Products Ltd., GOJO Industries Inc., Among Others to Contribute to the Market Growth | Industry Analysis, Market Trends, Opportunities, and Forecast 2024 Challenge to current model: Tremendous shifts are likely in brand portfolio, innovation strategy and capabilities, and ecosystem partners as companies move toward a health and wellness platform. Since 1980, there have been 178 weather and climate disasters in the United States. Mintel's Market Data Reports offer a quick and in-depth look at a market, providing Market Sizes, Market shares, Industry insights and 5 years forecasts. Instacart is a grocery delivery service that provides consumers with a third-party personal shopper that picks up and delivers groceries to them.9 Instacart shoppers pick up groceries at national retailers, as well as at local retailers, in 16 metro areas across the United States. Under this uncertainty, agricultural innovations are likely to emerge that have the potential to change the economics of food and beverage ingredients. Meeting the 2020 consumer products trends effectively requires new modes of thinking and working from modern consumer products organizations but above everything – strategies, technologies, skills, or capabilities – reigns the ability to ensure the consumer is present in every decision and process throughout the organization. (CAGNY) Conference, New York, February 19, 2013, http://ir.kraftfoodsgroup.com/events.cfm. These shifts in food demand trends have reshaped food marketing globally and prompted changes in the structure of the global food industry. The resource in question is water. Crowdsourcing has emerged as one popular method for doing this: Several successful campaigns, including PepsiCo’s FritoLay “Do Us a Flavor” campaign, have been built around seeking consumer input by crowdsourcing ideas on social media.25 In this campaign, consumers suggest new product flavors, and the winning flavors are developed and launched. The world of consumer packaged goods (CPG) is transforming. The likely consequence: More frequent shortages of natural resources, including water, will cause more supply chain disruptions. He sits on the Grocery Manufacturers Association Sales Committee and frequently speaks at industry and professional conferences. Trends that will shape the consumer goods industry The consumer-packaged-goods (CPG) industry’s growth over the past quarter century has been nothing short of exhilarating. In 2020, an uncertain economy serves as a backdrop for CP executives. Nestlé Purina observed the intense emotional bond that exists between pets and their owners, with pets often treated as members of the family. DTTL (also referred to as "Deloitte Global") does not provide services to clients. Marianne Wilson, “Whole Foods Market to open 38 to 42 stores, refresh 200 existing units in 2015,”, Greg Bensinger, “Rebuilding history’s biggest dot-com bust; online-grocery firm Instacart farms out jobs and food, hoping to make it where Webvan failed,”. CPG companies have launched innovative products to meet an ever-growing array of human needs and desires. For example, SlantShack Jerky makes handcrafted artisanal beef jerky sourced from sustainably raised, grass-fed cattle.21 Rising consumer interest in protein-rich food has driven increased sales of products such as jerky and other meat snacks in recent years. These potential undercurrents are not mutually exclusive. Fast-growing Consumer Products Market 2020 Industry Analysis, Share, Growth, Sales, Trends, Supply, Forecast to 2026 iCrowd Newswire - Aug 27, 2020 COVID-19, the disease it causes, surfaced in late 2019, and now had become a full-blown crisis worldwide. 2014, http: //www.usatoday.com/story/money/business/2014/11/01/purina-offering-personalized-dog-food/18317543/ resources consumer products industry trends including water, will cause More supply chain disruptions Zax, “ offering... Zax, “ Purina offering personalized dog food, ” November 1, 2014, http //ir.kraftfoodsgroup.com/events.cfm. 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