The Latest Consumer Packaged Goods Industry Statistics Explained
The global consumer packaged goods (CPG) industry is expected to reach $14.69 trillion by 2027.
The statistic indicates a projected growth in the global consumer packaged goods (CPG) industry, which encompasses a wide range of products such as food and beverages, personal care items, household goods, and more. The expected increase to $14.69 trillion by 2027 suggests a significant expansion in consumer spending on these packaged goods over the next few years. This growth may be driven by various factors such as population growth, rising disposable incomes, evolving consumer preferences, and increased demand for convenience and quality products. The statistic serves as an important indicator for businesses operating within the CPG industry, highlighting the lucrative opportunities for expansion and market development in the coming years.
The U.S consumer packaged goods market size was valued at approximately $1.63 trillion in 2020.
The statistic indicates that the total value of consumer packaged goods sold in the United States in 2020 was estimated to be around $1.63 trillion. Consumer packaged goods refer to products that consumers use on a daily basis, such as food and beverages, household products, personal care items, and cosmetics. This market size figure is significant as it provides insight into the scale of the consumer goods industry in the U.S., highlighting the substantial economic impact and demand for these products. This data can be valuable for businesses operating in the consumer goods sector, policymakers, and researchers to understand market trends, make strategic decisions, and gauge consumer spending behavior.
In 2020, e-commerce CPG sales grew to $190 billion, a rise of 35.4% from the prior year.
The statistic states that in 2020, consumer packaged goods (CPG) sales in the e-commerce sector reached $190 billion, showing a significant increase of 35.4% compared to the previous year. This indicates a strong growth trend in online sales of CPG products, reflecting the increasing preference of consumers to shop for household items, personal care products, and groceries online. The surge in e-commerce CPG sales can be attributed to factors such as the ongoing Covid-19 pandemic, which prompted many consumers to shift their shopping habits to online platforms for convenience, safety, and a wider range of product options. This statistic underscores the importance of digital sales strategies for CPG companies and the continuing evolution of the retail industry towards online channels.
Nearly 99% of U.S. consumers purchase CPG items in-store.
The statistic “Nearly 99% of U.S. consumers purchase CPG items in-store” suggests that the vast majority of consumers in the United States prefer to buy Consumer Packaged Goods (CPG) products through physical retail outlets rather than online platforms. This statistic highlights the enduring popularity of brick-and-mortar stores for CPG purchases, indicating that in-store shopping remains the dominant channel for consumers to access a wide range of everyday goods such as food, beverages, household products, and personal care items. The high percentage of consumers opting for in-store CPG purchases may be driven by factors such as the desire to physically inspect products before buying, the immediacy of being able to take products home immediately, and a preference for the overall shopping experience and convenience of physical stores.
North America and Europe account for about 60% of global CPG sales.
The statistic that North America and Europe account for about 60% of global consumer packaged goods (CPG) sales indicates that the majority of CPG products are sold in these two regions compared to the rest of the world. This could be attributed to the relatively higher income levels, consumer spending patterns, and market maturity in North America and Europe compared to other regions. Companies operating in the CPG industry may strategically focus their efforts and investments in these regions due to the significant market share they represent, aiming to capitalize on the large consumer base and potentially lucrative opportunities for growth and profitability. Additionally, this statistic underscores the importance of understanding regional market dynamics and consumer preferences when developing and implementing CPG sales and marketing strategies on a global scale.
The beauty and personal care segment in the CPG sector was valued at over $500 billion in 2020.
The statement indicates that the beauty and personal care segment within the consumer packaged goods (CPG) industry had a market value exceeding $500 billion in the year 2020. This suggests that the beauty and personal care sector is a significant and booming industry, reflecting high consumer demand for products within this category. The substantial market value also highlights the economic importance and potential growth opportunities within the beauty and personal care space, making it a key sector to watch for investors, businesses, and policymakers alike.
66% of consumers prefer CPG brands to handle customer service inquiries online rather than over the phone.
The statistic states that 66% of consumers have a preference for consumer packaged goods (CPG) brands to handle their customer service inquiries online rather than through over-the-phone interactions. This indicates that a majority of consumers favor the convenience and efficiency of addressing their concerns or questions through online channels such as email or chat as opposed to traditional phone-based customer service. This preference for online interactions highlights the growing importance of digital customer service solutions in meeting the needs and expectations of consumers in the CPG industry, emphasizing the need for brands to prioritize and invest in their online customer service capabilities to enhance customer satisfaction and loyalty.
92% of U.S. consumers are price conscious when purchasing CPG products.
The statistic that 92% of U.S. consumers are price conscious when purchasing consumer packaged goods (CPG) products indicates that the vast majority of individuals in the U.S. consider prices as an important factor in their purchasing decisions for items like groceries, toiletries, and household products. This suggests that American consumers prioritize finding value for their money and are likely to compare prices, look for discounts, or seek out deals when shopping for CPG items. The high percentage of price-conscious consumers implies a strong emphasis on affordability and cost-effectiveness in the buying behavior of the U.S. population within the CPG sector.
About 49% of consumers are more likely to purchase from CPG companies that align with their personal values.
The statistic suggests that nearly half of consumers are inclined to make purchases from Consumer Packaged Goods (CPG) companies that resonate with their personal beliefs and principles. This highlights the growing importance of brand values and ethics in influencing consumer behavior. With consumers becoming increasingly conscious of social and environmental issues, they are seeking out companies that align with their values, such as sustainability, ethics, and social responsibility. This data underscores the significance of companies integrating values-driven strategies into their branding and marketing efforts to attract and retain customers who prioritize shared values in their consumer choices.
In 2020, the food & beverage segment held the dominant share of the CPG industry, with 43.39% of the market.
In 2020, the food & beverage segment emerged as the dominant player in the consumer packaged goods (CPG) industry, capturing a significant share of 43.39% of the market. This statistic indicates that nearly half of all CPG sales were generated by food and beverage products alone, highlighting the sector’s substantial presence and influence within the industry. The strong performance of the food & beverage segment may be attributed to factors such as changing consumer preferences, a growing focus on health and wellness, and increased demand for convenient and sustainable products. This statistic underscores the importance of food and beverage offerings in the CPG landscape and signifies the segment’s significant role in driving overall market growth and profitability in 2020.
In 2020, the Asia-Pacific region accounted for the largest share in the CPG industry, holding over 30.3% of the market.
The statistic that in 2020, the Asia-Pacific region accounted for the largest share in the Consumer Packaged Goods (CPG) industry, holding over 30.3% of the market, indicates the significant influence and market dominance of this region in the CPG sector. This suggests that Asia-Pacific countries, such as China, Japan, and India, have a strong presence in producing, consuming, and trading consumer goods. The growth in population, increasing disposable income levels, and changing consumer preferences in the region are likely contributing factors to its leading position in the CPG market. This statistic underscores the importance of the Asia-Pacific region in the global CPG industry and highlights the opportunities and challenges present for businesses operating in this dynamic and diverse market.
77% of CPG brands that grew significantly in 2020 did so through digital channels.
This statistic indicates that the majority of consumer packaged goods (CPG) brands that experienced noteworthy growth in 2020 achieved this success by leveraging digital channels. The term “digital channels” encompasses various online platforms and technologies such as e-commerce websites, social media, email marketing, and online advertising. The data suggests that in the context of a challenging year due to the COVID-19 pandemic and shifting consumer behaviors, CPG brands found success in adapting their strategies to the digital landscape. By capitalizing on the opportunities presented by digital channels, these brands were able to reach and engage with consumers effectively, ultimately driving growth in a competitive market environment.
Private Label products accounted for 19% of CPG sales in 2020.
The statistic “Private Label products accounted for 19% of CPG sales in 2020” indicates that products sold under store brands or private labels made up 19% of total consumer packaged goods (CPG) sales in the year 2020. This suggests that a significant portion of consumer spending on CPG items such as food, beverages, household products, and personal care items was directed towards private label products rather than national brands. The 19% market share held by private labels highlights the growing popularity and acceptance of these products among consumers, signaling a shift in purchasing behavior towards more cost-effective options and potentially indicating increased competition for traditional national brands within the CPG sector.
E-commerce sales represented only 11% of total CPG sales in 2020, but it’s growing rapidly.
The statistic indicates that in 2020, e-commerce sales accounted for just 11% of total Consumer Packaged Goods (CPG) sales, which are physical goods sold to consumers. Despite this relatively low current percentage, the statement highlights that e-commerce in the CPG sector is experiencing rapid growth. This suggests that more consumers are increasingly turning to online platforms to purchase CPG products, leading to a significant shift in consumer shopping behavior. The trend of e-commerce growth in CPG sales may have significant implications for the industry, indicating the need for companies to adapt their strategies to accommodate the increasing demand for online shopping options.
The CPG industry’s return on assets (ROA) decreased from 9% in 2010 to 5% in 2019.
The statistic indicating that the consumer packaged goods (CPG) industry’s return on assets (ROA) declined from 9% in 2010 to 5% in 2019 suggests a significant decrease in the industry’s profitability and efficiency over the span of nine years. ROA is a measure of how effectively a company is utilizing its assets to generate profits, so the decrease in ROA indicates that the industry’s ability to generate earnings relative to its asset base has diminished. This decline could be attributed to various factors such as increased competition, changing consumer preferences, rising costs, or inefficiencies within CPG companies. It is essential for industry players to analyze the reasons behind this downward trend and strategize to improve their ROA for sustainable growth and profitability in the future.
Online CPG sales are forecasted to grow by up to $120 billion by 2025.
The statistic that online Consumer Packaged Goods (CPG) sales are forecasted to grow by up to $120 billion by 2025 indicates a significant anticipated increase in the online retail market for CPG products. This projection suggests a continuing shift towards online shopping for essential household items such as groceries, personal care products, and packaged foods. Factors driving this growth may include changing consumer behaviors towards convenience and a preference for online shopping, as well as advancements in e-commerce technology and logistics that make it easier for consumers to purchase CPG products online. This statistic signals a substantial opportunity for CPG brands and retailers to invest in their online presence and develop effective digital marketing strategies to capitalize on the projected growth in online sales.
60% of new products launched in the CPG sector fail within the first two years.
The statistic suggests that a significant majority, specifically 60%, of newly introduced products in the consumer packaged goods (CPG) sector do not succeed in the market after their launch, experiencing failure within the initial two years. This high failure rate highlights the competitive and challenging nature of the industry, where factors such as changing consumer preferences, fierce competition, ineffective marketing strategies, or shortcomings in product quality may contribute to the lack of success for many new products. Companies operating in the CPG sector must carefully analyze market trends, conduct thorough market research, and develop robust marketing and product development strategies to increase their chances of launching successful products in this dynamic and fast-paced environment.
Conclusion
The Consumer Packaged Goods industry statistics offer valuable insights into market trends, consumer behavior, and industry performance. By analyzing this data, companies can make informed decisions, identify opportunities for growth, and stay competitive in a rapidly evolving market. Understanding the latest statistics is essential for industry professionals looking to navigate the complexities of the CPG sector and drive business success.
References
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