INFLUENCER MARKETING

25 CPG Marketing Trends + Insider Tips to LEVERAGE All of Them

Trends come and go, but the most important ones have a massive influence on the business landscape.

That’s why you should stay on top of CPG marketing trends.

We’ve used our experience in the marketing world to analyze the 25 most significant CPG trends.

We’re not just parroting numbers, though.

We’ll show you how you can leverage these trends, whether you have a large or smaller CPG company.

And we’ll give you our influencer marketing platform’s actionable insider tips.

Let’s start.

Trends in the CPG Market

Let’s first see how the CPG market has evolved during the past years and what new trends are powering it forward.

1. Big CPG Companies Are Buying Smaller DTC Brands

Large CPG companies like Unilever and Procter & Gamble have started acquiring smaller DTC brands for years.

And they're leveraging these nimble entities to tap into evolving consumer preferences and drive digital transformation across their portfolios.

• For smaller brands: This can mean access to superior resources and distribution networks, amplifying your reach and operational capabilities. Yet, there's the risk of losing brand identity and the agility that defines your DTC company.
• For larger brands: The challenge lies in integrating these smaller entities without stifling their innovative spirit. That spirit was, in fact, a key factor in their original success. Market dynamics in such scenarios demand that both large and small entities align their business models. That way, they can maintain a competitive edge and meet consumer demands effectively.

Insider tip: From our experience, CPG influencer marketing can be a crucial tool here.

That’s because you get a direct relationship with loyal customers.

Plus, it can be tailored to preserve the unique identity of smaller brands under the large corporate umbrella.

This strategy ensures customer engagement remains high because it leverages authentic content to resonate deeply with both individual consumers and broader segments.

Besides, you can mitigate the potential dilution of brand essence post-acquisition and help position your products effectively in a competitive market.

For example, when Nordstrom partnered with Wildfang to introduce a non-binary clothing line, they worked with our influencers:

The 7 cast influencers produced a little over 50 content assets but got the new collection a massive 750,000 cumulative audience reach.

2. Big CPG Companies Launch New Brands

Large CPG companies like Procter & Gamble launch innovative DTC brands such as EC30.

That’s because they aim to capitalize on key trends like sustainability and tailored experiences.

Also, the direct-to-consumer (DTC) model rocks, and CPG brands leverage it.

Other examples include Unilever’s Love Beauty and Planet and Nestlé’s Wunda, which focus on sustainable products and health-conscious consumer preferences, respectively.

• For smaller brands: These launches present both challenges and opportunities. The challenge is the heightened competition from giants with vast resources, which can overshadow your smaller brand in retail channels and digital platforms. However, there's also an opportunity: large companies testing new waters validate market segments and consumer sentiments. As a result, they can expand your overall market and consumer awareness.
• For larger brands: There’s a big risk of cannibalizing your existing product lines and confusing your customer base with too many options. However, if managed well, these new launches can drive incremental sales and foster a healthy lifestyle image that attracts modern consumers.

Insider tip: We advise our clients to leverage data-driven marketing and focus on delivering authentic content via online platforms.

That’s how they set themselves apart nicely.

We like how influencer marketing creates digital experiences that resonate, especially if you’re using nano- or micro-influencers.

3. Big CPG Companies Leverage DTC Increasingly More

We mentioned this in the previous section.

And the examples of CPG companies leveraging Direct-to-Consumer (DTC) models abound.

Take Heinz to Home, for example.

They tap directly into the existing customer base, bypassing traditional retail channels.

PepsiCo’s Snacks.com and PantryShop.com are other notable examples where companies establish a direct relationship with consumers.

And this enhances customer engagement and experience.

• For larger brands: This approach refines your consumer insights through direct feedback and shopping data. That means you can make more precise adjustments in your marketing campaigns and product offerings. The primary risk for larger brands involves the complexity and cost of setting up and maintaining e-commerce platforms while ensuring seamless customer experiences across various digital touchpoints.
• Pro tip: The transition to DTC platforms also responds effectively to the rising trend of online shopping and consumer demands for more personalized and convenient shopping experiences. But we’ll discuss those trends below.
• For smaller brands: These shifts may present significant challenges. Big players' entry into DTC spaces intensifies competition and increases the marketing spend you need to compete on digital platforms. However, this also creates opportunities to differentiate yourself through unique consumer propositions like sustainable practices or bespoke products that large companies might struggle to offer at scale.

For example, Soylent decreased its marketing budget considerably by using micro-influencers.

The brand partnered with inBeat Agency and distributed their new product lines through niche-specific content creation.

Results: 10 creators produced 50 reusable content assets that led to over 5 million impressions.

4. New DTC Brands Undermine Solid CPG Brands

The rise of DTC brands like Harry’s and Dollar Shave Club are great examples.

It goes to show you that not only large CPG brands can swallow smaller ones.

In fact, these two shaving brands reduced Gillette’s market share from 71% to 59%. And Harry’s is now the first choice in the US, according to Statista.

We’ve seen it time and again on our influencer marketing platform.

Nimble startups can disrupt established market leaders.

Other examples include Casper disrupting traditional mattress companies and Warby Parker in the eyewear industry.

• For larger CPG brands: This signals a clear warning. Adapt or face erosion of market share. These new entrants capitalize on digital marketing strategies and consumer insights to offer tailored experiences and lower prices directly to consumers.
• For smaller CPG brands: This trend offers a blueprint for success. You can carve out significant niches by focusing on customer demands and leveraging online platforms. The challenge, however, lies in scaling sustainably while maintaining the unique value proposition that attracts your customer base.

Insider tip: Influencer marketing can help here, too.

Whether you have a large or small brand,  this marketing strategy helps you build genuine customer relationships and enhance digital experiences.

You can also use this tool to communicate your brand values and product benefits better. As a result, you can drive both engagement and loyalty.

For example, Harry’s is partnering with several social media influencers:

5. Retailers Launch New CPG Brands

Major retailers like Walmart, with its Great Value brand, and Amazon, with Amazon Basics, are increasingly venturing into private label brands.

Obviously, this intensifies competition in the CPG space.

Major retailers can capitalize even more on consumer insights gained from vast data on shopping behavior and preferences.

As a result, they offer competitive products at even lower prices.

• For large CPG brands: This trend poses a significant threat because retailer-owned brands receive preferential shelf space and marketing. It squeezes the traditional brands' market share and puts pressure on them to differentiate more distinctly or compete on margins.
• For smaller brands: There is a dual-edged sword. Sure, the threat of being overshadowed by retailer brands is real. However, there is also the opportunity to become suppliers for these private labels. OR, you can carve out unique offerings that stand apart from generic retailer brands.

Insider tip: Whether you have a large or small CPG company, we advise you to create unique consumer propositions that cannot be easily replicated by retailer brands.

Strengthen direct-to-consumer channels, enhance the shopping experience, and use data-driven insights to meet consumer expectations.

All this can help you maintain a solid competitive advantage in a crowded market.

Trends in CPG Shopping and Marketing Channels

Now, let’s see the trends you can expect in shopping channels and experiences.

6. E-commerce Is Becoming an Increasingly Solid CPG Channel

E-commerce giants like Walmart and Amazon have seen significant growth, with Amazon reporting almost $575 billion in sales in 2023.

And you can see the upward trend.

Target and Costco have also reported substantial e-commerce growth.

• For both small and large CPG brands: The shift to e-commerce is not just a trend but a fundamental shift in consumer shopping behavior. That means you can’t survive without a robust online presence.
• For smaller CPG brands: This shift presents an opportunity to reach a broader audience without the traditional barriers of physical retail. However, it also introduces challenges such as increased competition and the need for effective digital marketing strategies.
• For larger brands: Maintaining relevance and visibility in a crowded online marketplace becomes crucial.

Another insider tip about influencer marketing: Well-chosen influencers can significantly boost your e-commerce efforts by driving targeted traffic to your online listings and creating buzz around new or existing products.

That means you can enhance your online sales, build brand awareness, and gain valuable insights into consumer behavior.

7. People Want Faster Shipping

According to Statista, 41% of global shoppers want their orders shipped within 24 hours.

24% of global buyers want to receive their orders in less than two hours.

CPG brands have adapted and you will see this trend increasing.

For example, GoPuff has launched FAM20, which promises delivery in less than 20 minutes.

And many other CPG companies shift from one-day to same-day delivery to satisfy escalating consumer expectations for speed.

• For both large and small CPG brands: This trend pressures everyone to optimize their logistics and delivery options to stay competitive.
• For smaller CPG brands: The demand for faster shipping presents a logistical challenge because you may lack the infrastructure or partnerships to meet these expectations.
• For large brands: Scaling up rapid delivery services can be a significant investment but also a crucial differentiator in customer experience. Enhancing delivery options can directly impact customer loyalty and increase repeat purchases.

Insider tip: You can innovate in the delivery space, such as through local fulfillment centers or partnerships with third-party logistics providers.

8. Omnichannel Shopping Experiences Boom

Consumers are increasingly looking for a seamless shopping experience across all channels.

A study shows that brands with strong omnichannel customer engagement see a 9.5% year-over-year increase in annual revenue.

Loyalty programs and targeted advertising across social media platforms can significantly enhance this experience.

• For smaller CPG brands: Creating a unified customer journey across multiple channels can be complex due to resource limitations. Yet, it's an opportunity to build direct and enduring customer relationships by offering consistent, personalized experiences across all touchpoints.
• For larger brands: The omnichannel approach is essential to maintain market dominance. Integrating physical and digital shopping experiences can help retain a diverse customer base and gather comprehensive consumer insights.
• In both cases: Influencer marketing can amplify omnichannel strategies by creating cohesive narratives that span various platforms, enhancing both reach and engagement. Influencers can drive traffic to physical stores through online campaigns or boost e-commerce sales through direct links and personalized promotions.

9. Omnichannel Marketing Experience

Omnichannel marketing underscores the importance of a holistic marketing strategy.

For example, Grocery TV found that CPG companies could increase their sales by 14% when they advertised through its in-store retail media network.

Similar examples include Coca-Cola’s integration of digital marketing with point-of-sale advertising, which led to increased brand engagement.

Walmart’s use of online and in-store promotions has similarly uplifted sales figures.

• For smaller CPG brands: This integration poses a resource challenge but offers a significant opportunity to create seamless customer experiences that can increase brand loyalty and customer base.
• For larger brands: Maintaining consistency and relevance across multiple channels can be hard, but it gives you a solid competitive advantage.

10. Influencer Marketing Is Becoming Increasingly More Used

Statistics show that Instagram influencer marketing is projected to grow to approximately $22 billion in 2025.

And remember, that’s just Instagram influencer marketing.

That’s why 85.8% of marketers planning have an influencer marketing budget.

Also, 59.4% of businesses plan to increase this budget.

This is the part where we can say we told you so.

This trend highlights the growing importance of influencer marketing in brand strategies.

• For smaller CPG brands: This presents an opportunity to leverage more cost-effective, high-ROI marketing strategies that can level the playing field against larger competitors. We have personally used influencer marketing in numerous cases to reduce ad fatigue and skyrocket ROAS.
• For larger brands: While influencer marketing offers extensive reach and consumer engagement, the challenge lies in selecting the right influencers who align with your brand’s core values and effectively convey your message to the target audience.

And it definitely works.

Take Native, for example.

Native partnered with inBeat Agency to find influencers for five collections and counting.

These creators produced over 1000 unique reusable photo and video assets.

And they helped Native see a 200% increase in their initial content target.

11. Live Shopping Experiences Are Driving Sales

Live shopping events have been reported to be driving significant sales, with platforms like Taobao seeing over $7.5 billion in sales during a single live-stream event.

And The Fresh Market has seen a 300% increase in conversion rates with the same strategy.

The reason is simple.

We love this format because it combines immediacy and interaction.

Basically, you’re appealing to consumer desires for engaging shopping experiences.

• For smaller CPG brands: Live shopping offers a unique opportunity to showcase your products interactively. This will help you increase sales and customer engagement without the need for large scale physical retail presence.
• For larger brands: While the format offers vast potential reach, the challenge is to keep such events fresh and engaging to stand out in a crowded market.

12. Social Media Stores Are Growing

With major social media platforms like Facebook and Instagram tightening algorithms, organic reach has plummeted.

Enter the pay-to-play strategy.

• For smaller CPG brands: The challenge is the increased marketing budget required for visibility. However, this also represents an opportunity to target specific demographics more accurately.
• For larger brands: While the cost is less of an issue, the challenge is to maximize ROI through effective targeting and creative campaigns.

In all scenarios, the focus should be on building a strong digital presence that leverages data-driven decisions, engages through influencer marketing, and capitalizes on new e-commerce trends to stay competitive.

Pro tip: 48% of marketers claim that YouTube brings the best ROAS, while 35% of marketers get the most value from Instagram.

13. UGC Ads Are Becoming a Thing

User-generated content (UGC) advertising is growing in prominence.

For instance, brands using UGC reported a 50% higher engagement rate compared to traditional ads.

Besides, 79% of people base their purchase decisions on UGC.

CPG brands leverage this authentic content created by consumers increasingly more.

It’s no wonder this happens if UGC leads to higher trust and engagement rates among potential customers.

• For smaller CPG brands: Power up your marketing budget with UGC because it’s a cost-effective way to generate content that resonates with your audience. The point is to increase your customer engagement without the hefty price tag of traditional advertising campaigns.
• For larger brands: The challenge is curating and scaling UGC without diluting your brand's message. That said, the chance to build a direct relationship and loyalty with consumers is too good to miss.

For example, inBeat Agency created UGC ads and social media posts for the cold-press juicer brand Hurom.

The results were impressive, with a 60% decrease in CPAs and a 2.5% increase in ROAS.

14. Delivery Apps Are Also More Popular

The usage of delivery apps has soared, with companies like Uber Eats experiencing an 11% growth in revenue year-over-year.

This surge highlights the growing consumer preference for convenience.

• For smaller CPG brands: You have the chance to reach consumers directly and frequently. You don’t need a large physical retail presence to compete. However, you must deal with the logistics and partnership terms with these platforms.
• For larger brands: Integrating with delivery apps can enhance the delivery options available to consumers. That’s how you can increase customer satisfaction and repeat business.

Insider tip: Consider building your own delivery app for your loyal customers.

15. Data-Driven Marketing Takes the Cake Every Time

We love data-driven marketing because it has been shown to increase sales significantly every time.

Some reports even suggest that brands using advanced analytics can see up to a 20% increase in ROI.

Besides, marketers who use data analytics are three times more likely to exceed their sales goals than companies that don’t.

That’s because you can target consumers more accurately and based on very precise and actionable insights.

• For smaller CPG brands: You can finally compete with larger brands by leveraging data to make informed decisions and optimize your marketing campaigns.
• For larger brands: While the benefits are clear, the sheer volume of data can be overwhelming. That’s why you need top-notch tools and expertise to extract valuable insights effectively. A solid growth agency like inBeat can streamline the whole process.

16. Digital Marketing Spend Is Skyrocketing

Digital marketing spending is increasing rapidly, with forecasts suggesting that worldwide digital advertising spend will reach $730 billion in 2025 and $870.9 billion in 2027.

As you can see, digital channels are becoming the main mediums for consumer engagement.

• For smaller CPG brands: The rising cost of digital marketing is a definite challenge in terms of budget allocation and achieving visibility in a crowded online space.
• For larger brands: The challenge lies in maximizing the efficiency and impact of this spend. Basically, you have to make sure your increased investment translates into proportional gains in consumer reach and conversion rates.

That’s why you need to leverage modern marketing techniques correctly.

It will help you capitalize on emerging trends and technologies, giving you a better competitive edge in an increasingly digital marketplace.

Again, the solution can be influencer content.

inBeat Agency, for example, helped organic salmon retailer Bluehouse Salmon to power up its social media content calendar only with influencer content.

This approach led to a 1900% follower growth increase for Bluehouse Salmon.

CPG Trends in Customer Preferences

Now, let’s move on to what your audience wants to get from your CPG brand.

17. Consumers Value Sustainability

The demand for sustainability in consumer goods is strong, with Bazaarvoice reporting that 77% of consumers prioritize responsibly sourced products, 76% want evidence of reduced carbon footprints, and 68% favor natural ingredients in cleaning products.

That’s why more CPG brands integrate sustainable practices into their business models.

• For smaller CPG brands: You can differentiate yourself in the market by focusing on eco-friendly products and sustainable sourcing. However, the challenge lies in achieving these sustainability goals without extra costs that affect your pricing and competitiveness.
• Larger brands: You face the task of overhauling established supply chains and production methods. Again, this is a complex and costly task. However, the potential for brand loyalty and market share growth among environmentally conscious consumers can justify these investments.

18. Consumers Want More Self-Care Products

The demand for self-care products increases with specific growth in sectors like suncare and anti-hair loss treatments.

According to Google Trends, discussions around self-care products have surged considerably.

For smaller CPG brands: You can enter or expand in niche markets with specialized products that meet these growing needs.

The challenge, however, is in competing with larger brands that are also recognizing and moving into these spaces.

• For larger CPG brands: Capitalize on your existing distribution and marketing infrastructure to quickly scale up offerings in these categories. Yet, you must ensure that your new products are in line with consumer expectations for efficacy and quality. And that requires precise consumer insights and product development strategies.

Another company that used our influencers is the beauty brand Prose:

The point is that Prose has a solid business model.

It sends customized haircare products to people after they fill in a quick test on their website.

That, combined with a data-driven influencer strategy, is how they can stand apart in a crowded market.

And that brings us to our next point:

19. People Want More Customized Options

Consumers increasingly demand products tailored to their specific needs and preferences.

A recent McKinsey study showed that 71% of consumers expect personalization as a standard of service.

This trend spans categories from personal care products to food and beverages.

• For smaller CPG brands: This demand for customization represents a chance to leverage your typically more agile business model to innovate and cater to specific consumer segments quickly. On the other hand, the challenge is scaling these personalized offerings without significantly increasing costs or complexity.
• Larger brands: You might find customization more challenging because of your larger, more rigid operational structures. Luckily, you can use your resources to invest in technology like AI to offer personalized experiences at scale, such as customized skincare regimens or personalized nutrition plans.

20. People Love Subscription Boxes

Subscription services are rapidly gaining traction, with the global market expected to grow to $450 billion by 2025.

This model is particularly popular in categories such as personal care products and household items.

• For smaller CPG brands: Subscription boxes represent an opportunity to build steady revenue streams and foster direct relationships with customers. The challenge lies in maintaining variety and interest to reduce churn rates.
• For larger CPG brands: Leverage your scale to offer more diversified options and your data-driven insights to personalize subscriptions. This two-pronged approach leads to enhanced customer retention.

Insider tip: Optimize your delivery options to meet the expectations of subscription-savvy consumers.

It’s not enough to simply offer this service; you must focus on customer experience as well.

21. Online Mobile Shopping Is Growing Strong

In 2023, 60% of e-commerce purchases were made online from mobile devices.

That means you need to offer this option to your potential customers. And streamline it.

• For smaller CPG brands: Optimizing for mobile e-commerce platforms can help you capture a growing segment. However, creating competitive, mobile-optimized shopping experiences that can compete with larger brands is tough.
• For larger CPG brands: Integrate more sophisticated mobile app features, such as AR and AI-driven product recommendations, to enhance the shopping experience. Remember to continuously innovate to stay ahead in the highly competitive online market.

Insider tip: Post UGC on your product page and shopping cart to increase your conversion rate.

22. Brick-and-Mortar Stores Aren’t Dead

Despite the growth of online shopping, physical stores remain relevant.

Over 85% of sales still occur offline in some categories.

This number highlights the enduring value of a physical retail presence.

• For smaller CPG brands: Offer tailored experiences that can't be replicated online. The challenge, of course,  is managing the overheads associated with physical stores.
• Larger brands: Use your stores as experiential hubs to supplement your online sales. Even better, leverage data from both to enhance your overall consumer journey. The key is integrating digital and physical sales channels to provide a seamless omnichannel experience.

23. Consumers’ Dislike of Shopping Is Increasing

Brandwatch reported a 56% negativity rate toward shopping experiences in early 2023.

This sentiment is driven by inflation and price increases.

• For smaller CPG brands: Focus on customer service and create more engaging, hassle-free shopping experiences that directly address consumer grievances.
• Larger brands: Reassess your customer journey maps to identify and alleviate pain points. Implementing data-driven marketing strategies to personalize the shopping experience and improve customer satisfaction is critical to reversing negative sentiments and enhancing brand loyalty.

24. The Quiet Luxury Trend Is Growing

Market research shows a huge increase in consumer interest in "quiet luxury" products — those that emphasize quality and sustainability without overt branding.

This movement is particularly prevalent in the personal care and household items sectors.

• For smaller CPG brands: You can carve out a niche by focusing on high-quality, understated products that appeal to discerning consumers. The challenge lies in maintaining premium quality without prohibitively escalating costs.
• For larger CPG brands: Leverage your resources to create sub-brands that align with this trend. Then, use your established market presence to attract consumers looking for understated luxury.

Pro tip: Carefully balance this with your existing brand portfolios to avoid cannibalization.

And yes, you can use influencers:

25. People Want Clear Brand Values

A recent study indicates that 82% of consumers want the brands they purchase to have similar values to their own.

Also, 65% of people say they’re likelier to buy if they know the story behind the brand.

This demand for transparency and authenticity in brand communication is increasing.

• For smaller CPG brands: Articulating clear, consistent brand values can build trust and loyalty among a growing segment of consumers. Obviously, make sure that all aspects of operations align with these values transparently.
• Larger brands: Work harder to communicate your values across all touchpoints consistently. More importantly, ensure your actions match your words, especially in a climate of increased consumer skepticism.

Wrapping Up

As you can see, CPG marketing is full of opportunities.

You need a multi-channel approach, combining both digital and in-store marketing.

You’ll also have lots of success by adopting the DTC model, speeding up shipping, and streamlining mobile shopping.

All this is based on a thorough, granular understanding of your audience.

Influencer marketing, paid social, and UGC ads will also help you connect with your audience better.

So, try inBeat now for free to find the best creators OR book a free call with our agency to look at your strategy.

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