Prior to 2020, the CPG industry was undergoing gradual change with increased emphasis on digital transformation, innovations keeping in line with growing awareness about sustainability, judicious resource usage and climate change. The far-reaching impact of COVID-19 pandemic further changed consumer behavior drastically, making the marketspace prone to frequent oscillations. While home and personal care industries saw a steep hike in purchase of hygiene and sanitization products (along with stockpiling of essentials such as toilet paper), non-essentials like apparel and footwear struggled with an unforeseen, abrupt drop in sales.
With health and safety concerns emerging as the primary determinants of consumer behavior in the months to come, and growing e-commerce adoption, the effects of 2020 are expected to extend into and affect market innovation in 2021, as companies tweak and alter their traditional practices and product formulations to ensure survival and sustenance.
Through the course of this report, we address the overall market impact and change to consumer behavior in 2020, delve into what these changes imply for the CPG industry sectors and suggest the best ways in which companies can make the most of 2021 by leveraging customized data-driven, analytically sound technologies and operational practices.
CPG AI Trend Spotting for 2021
With increased work-from-home setups there is a new decision maker when it comes to CPG food spending. The work environment is no longer the focal driving point of food consumption – decisions revolve around family setups instead. And this will change food/product consumption trends and demand. The occasion for which and the location where food items and beverages are bought, change. Forecasting product size distribution and parallelly anticipating packaging needs, reforecast demand and distribution patterns become a central focus.
Growing affinity towards sustainable production, manufacturing and consumption processes as there is growing awareness about climate change and the depleting supply of resources, could radically alter traditional products as we know it – and AI-powered deep learning ML models have a key role to play.
CPG-customer relations are transforming, transcending beyond traditional setups and affecting a plethora of operational activities from creating new, robust delivery systems, to revamping pricing and solidifying brand-consumer interactions on social media platforms, product innovation initiatives and more.
Driven by pandemic disruption, a new category of products has taken over the industry – some industries within the CPG are witnessing their first spike in half a decade. What are these demand spikes, and how are they redefining market practices?
Download the 2021 CPG Trends Report to find out about the trends that will shape the CPG marketspace this year.
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