Cincy Brands, a startup acquirer, is focused on measured growth in the “better for you” category of brands offering healthier, less chemical-intensive products, seeing itself as the opposite of mega-aggregators that grew massive in a hurry and have found themselves retrenching.
The CPG industry is evolving faster than ever. Nearly everything about the category has changed, including the way brands develop and bring products to market. Also, inflation puts pressure on marketing budgets, loyalty is weakening and younger consumers have higher expectations and tend to be skeptical of advertising efforts.
For CPGs, it’s no longer a matter of if but when the circular economy will supplant the traditional linear take-make-use-dispose model of consumption. The race to tap emerging sources of value and capitalize on the circular economy is well underway. The edge likely will go to companies that mobilize to take these seven steps.
Some say shrinkflation is a sneaky strategy because businesses use the same packaging but give customers less, arguing it’s an attempt to deceive them. But many are making sure changes are available for consumers to see in some format. It’s the consumer’s responsibility to check the pack, but communication with buyers is key.
Boxed, a seller of subscription bulk CPG items through its automated facilities that competes with Costco, BJ’s Wholesale and Sam’s Club, is expanding into fresh, on-demand grocery delivery with the acquisition of New York-based MaxDelivery. The company plans to leverage MaxDelivery’s high AOV model into other markets in 2022.
While many CPG marketers now account for major consumer behavior shifts, the most successful seek to better understand and respond to trends in the context of their own product mix. Now a channel-agnostic approach to interpreting market signals most relevant to their own product mix is fueling smarter marketing decisions.
Today, 76% of consumers will purchase consumer packaged goods online. This leads to brands spending $5.97 billion on digital marketing for these products. This infographic by Adaptly illustrates those challenges are and how to solve them.