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Consumer Goods


STAY AHEAD OF THE NEXT BIG SHIFT: 4 CONSUMER GOODS TRENDS TO WATCH

Companies need to keep goods flowing, even as they contend with delayed
deliveries and empty desks. [Malte Mueller / Getty Images]


MAKE THE MOST OF THE YEAR’S BIGGEST TRENDS TO IMPROVE MARGINS AND GROW PROFITS.


HILARY ENGLERT

Apr 26, 2023 3 min read


SHARE ARTICLE

 * 
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What keeps consumer goods (CG) executives up at night? The industry realities of
sky-high operating costs, looming price increases, and shoppers who want cheaper
products. The biggest consumer goods industry trends of 2023 offer opportunities
for brands to drive profitable growth, even in an uncertain economy, but only if
they put the data they already have to work.

It’s not surprising that 68% of CG industry leaders say improving operating
margins will be their biggest challenge in 2023. You can grow profits, even as
tighter budgets force you to do more with less. How? By using the data you
already have to stay ahead of the industry’s current shifts.


GET MORE BANG FOR YOUR TRADE PROMOTION BUCK

Most promotions fail to break even. How can you boost your trade budget ROI?

Get the guide




TREND #1: OMNI-CHANNEL SHOPPERS EXPECT OMNI-CHANNEL ENGAGEMENT

To stay competitive, it’s essential to achieve perfect retail execution. But
with most consumers shopping online and in stores, brands need to engage
consumers everywhere they discover and purchase products — a mission-critical
task, considering 60% of shoppers say they’d rather buy from CG companies
instead of retailers. 

Here’s the catch: The traditional one-size-fits-all marketing strategies CG
companies typically use to drive consumer demand won’t be enough to attract the
attention of shoppers who expect personalized experiences online. 

Here’s what you can do: Deliver the seamless engagement consumers expect —
regardless of channel. To do this, unify your data sources to better connect
with your customers and tap into clearer analytics. That helps you reach
consumers in a personalized way and on the devices and channels they prefer.  


TREND #2: KEEPING UP WITH CONSUMERS

What shoppers want has changed dramatically and frequently over the past several
years, recent consumer goods industry trends show. Keeping up with their
preferences is now the top priority, according to 93% of CG leaders. 

It’s not easy to stay agile if you rely on stale data to make decisions. If your
products and distribution can’t keep up with what retailers and consumers need
today (and predict what they’ll want tomorrow), your competitors may gain an
edge.

Here’s what you can do: Use real-time data to predict, track, and capitalize on
important trends. For example, if you see consumers on social media wishing for
product flavors you don’t make, you can develop new versions of their beloved
grocery item and expand your product line, knowing there is a market for the
additions.


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TREND #3: PROMOTIONS TIP THE SCALE IN FAVOR OF BRANDS

Right now, 85% of growth-seeking CG companies want to win over consumers that
haven’t shopped their brand before. According to Deloitte, these companies plan
to use trade promotions — alongside advertising and product innovation — to
compete with private label products and attract the attention of new shoppers.

That sounds simple enough, but tighter margins mean you need to squeeze every
drop of value from your trade promotion budget. Historically, maximizing return
on investment of promotions has been difficult for CG companies because of poor
transparency, legacy processes, and weak analytics. 

Here’s what you can do: Optimize your promotions with tools that automate
planning, tracking, and forecasting so you can quickly spot and scale your most
profitable programs. Companies that do this well score big wins. Top-performing
promotions return five times more than the least efficient, according to
McKinsey.


TREND #4: EFFICIENCY — EVERYWHERE AND ALL AT ONCE

Current consumer goods industry trends show stubborn labor and supply chain
challenges are making it harder for CG companies to get products in the hands of
consumers. That’s leading more than nine in 10 companies to focus on supply
chain improvements and operational excellence, with another 90% prioritizing
productivity and efficiency.

Their main concern is that consumer demand, although predicted to cool, is still
hot. CG companies need to keep goods flowing, even as they contend with delayed
deliveries and empty desks. 

Here’s what you can do: Integrate applications and automate processes across the
supply chain. That will improve visibility, enable real-time communication with
partners, and lessen the impact of unplanned costs, out-of-stocks, or delays. 


WHAT THESE CONSUMER GOODS INDUSTRY TRENDS MEAN FOR YOU

What’s the bottom line for your brand? Dive deeper into your real-time data for
insights that help you better respond to changing consumer preferences and wider
macroeconomic challenges. 

The companies that can manage this successfully won’t just win the hearts of
consumers — they’ll establish themselves as a force to be reckoned with for
years to come.


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grow sales, and tap into intelligent insights.

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Hilary Englert Senior Director, Product Marketing, Retail & Consumer Goods

Hilary is a senior director of marketing for the Retail and Consumer Goods
Industries at Salesforce. Connect with her on LinkedIn.

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