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consumer products industry trends

She has extensive global experience, having implemented transformation programs in 17 countries. Fashion/home. By highlighting these uncertainties, we hope to not only provoke leadership team discussion, but also bring about action. Further, it lays the foundation for many new trends that will become increasingly important in the near f… Other last-mile delivery services are also emerging in the grocery and general retail space.10 Of note to consumer product companies is that some retailers have reported incremental sales through the online delivery channel.11 Preparing for this undercurrent is important: Recent research suggests that many packaged goods companies may be less prepared to capitalize on digital commerce than they should be—or than many consumer product executives would like to be.12 In a 2013 study comparing consumers’ and CPG executives’ views on e-commerce, 92 percent of CPG executive respondents agreed with the statement, “The e-commerce channel is a strategic sales channel for CPG companies.” Yet only 43 percent of these same executives thought that their company had a clear, well-understood digital commerce strategy, indicating a substantial gap between e-commerce’s perceived importance and consumer product companies’ readiness to execute. With more than 3,600 professionals in the Consumer Products practice, Deloitte delivers insights on the latest consumer product issues, effective practices, technology, and operating procedures, serving companies across multiple categories including food and beverage, apparel and footwear, personal care, and household products. The undercurrents in play place stress on the consumer product company’s traditional sources of competitive advantage—scale, brand loyalty, and retail relationships—and the operating model that many of these companies are built on. The rapid pace of change necessitates companies to move quickly and completely in a coordinated way. The remaining 120 executives worked in other consumer-focused industries, including commercial banking, travel, hospitality, automotive, and consumer electronics. As we look towards the next decade, the consumer products industry will continue to feel the impact of an evolving global economy, a shifting geopolitical landscape, and changing consumer demographics and expectations. Companies may undergo a major shift in their brand management approaches, their relationships with suppliers and retailers, and their business practices along the entire value chain. Partner, Consumer Products Industry Leader Email Twitter LinkedIn. Ltd). For instance, in 2012, the company met its goal to improve operational water use efficiency by more than 20 percent per unit of production over 2006 levels. See something interesting? In 2014 alone, there were eight weather and climate disaster events across the United States.16. Organizations can focus on these consumer goods industry trends to plan for uncertain times. Consumer product companies should consider taking steps to guard against being thrown off their charted course by these undercurrents—or they may find themselves capsized by a future that takes them by surprise. Nidal Haddad, "The intuitive enterprise: Enterprise-wide change is necessary to leapfrog to an intuitive enterprise," Deloitte, http://www2.deloitte.com/us/en/pages/consulting/articles/the-intuitive-enterprise.html, accessed June 22, 2015. Discover Deloitte and learn more about our people and culture. Social login not available on Microsoft Edge browser at this time. Technology can also allow consumer product companies to pursue greater collaboration with retailers, shopping-related application providers, and payment companies. The economy will likely continue to stagnate, and may give rise to increased income bifurcation, middling level of consumer confidence, and a struggling middle class. The research described in this article is based on 14 case studies conducted between June and December 2014, an executive survey conducted in August–September 2013, consumer surveys conducted in January 2014 and January 2015, and seven executive interviews conducted between July and November 2014.3 The executive survey polled 205 US executives and senior managers; the consumer surveys, over 4,000 adult US consumers. Challenge to current model: The value of mass-production economies of scale is undercut by new business models based on customization and delivery of individual units. These potential undercurrents are not mutually exclusive. Liquid Hand Soap Market 2020-2024- Featuring Colgate-Palmolive Co., GlaxoSmithKline Plc, Godrej Consumer Products Ltd., Among Others to Contribute to the Market Growth | Industry … While the future of retail and consumer products holds great uncertainty, a thorough look at data and macro forces reveals some important themes for the industry. The downward trend in profitability for both big and small players suggests the need to revisit the relevance of traditional R&D and innovation models. Measured by return on assets (ROA), the consumer product industry’s median profitability has trended downward over the past 30 years (from 5.8 percent in 1980 versus 3.7 percent in 2013).1 While the bottom quartile of consumer product companies has suffered the most (1.9 percent ROA to a negative ROA of -5.6 percent), top performers are also slightly less profitable than they were before: Top-quartile ROA performers’ ROA fell from 9.2 percent to 8.1 percent.2 In other words: Collectively, the industry has lost steam. Consumer Products Insights From product innovation to retail consolidation, Bain Insights provide fresh analysis on this changing market. In this rapidly evolving, low-growth, and margin-compressed environment, clear strategic direction and coordinated efforts are not all that should be pursued. Executive and senior manager respondents’ roles and titles reflected a broad range of experience in operations, finance, sales, information technology, marketing, and general management. Almost half of US consumers have stronger preferences for brands and products aligned with the shifting value drivers of health and wellness, safety, corporate citizenship, and transparency, and the data suggest that this preference is not isolated to Millennials and high-income segments.7 Some consumers are becoming increasingly aware of corporate values and placing more emphasis on the role of the company within the community. “The ad-hoc and relatively uncoordinated commodity strategies of the past have left us underprepared for the higher uncertainty we face.”—Packaged goods finance executive The fifth uncertainty posits commodity cost increases and higher cost volatility for key food and beverage inputs. Yet preparing for an uncertain future in 2020 is particularly difficult. Second, retailers seemed more focused on technology-related areas, such as social influence and digital marketing, than the consumer product respondents were. Do not delete! If changes are not made in the near term to enhance and fully scale up the capabilities of both your organization and your people, you may reach a point where both your ship and your crew will be irrelevant—precluding the possibility of smooth sailing into 2020 and beyond. Also, 50 percent of consumers were willing to pay more for a brand if it communicates its commitment and efforts to improve food safety. The digital transformation of all industries has been accelerated due to challenges such as radical demand shifts, supply chain reconfiguration, seasonal workforce interruptions, and the repurposing of manufacturing capacity. Speed of execution and completeness of action are just as important, if not more important, to consider. One major trend we are seeing right now with consumer technology is the demand for now and more. . Consumer 3D Sensing Products Market 2020 – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2019 – 2027. Because no one knows exactly how marketplace dynamics will eventually play out over the next five years, consumer product companies should be prepared to operate amid uncertainty. Explore BCG’s latest thought leadership on consumer products to plan your company’s next move. The consumer segments that were more likely to associate natural and organic with food safety include individuals or households with allergies, families with children, and 21–29-year-olds. Decisive action along the lines we have discussed could be key to helping your organization meet the challenges it may face in the journey to 2020 and beyond. Her clients span the food & beverage, personal care/household goods, agriculture, and white goods segments. Consumer Electronics Market size valued at USD 1,100 billion and is expected to register over 3% growth between 2017 and 2024. Increasing penetration of smartphones across the globe is expected to drive the market growth. Kim Porter, Additionally, recent social media listening research indicated that when consumers talk about food safety in the United States, only 14 percent of the discussion is about basic food safety, while the rest is about a broader set of topics, such as health and wellness.43 Within the health and wellness and food safety discussions, a significant number of posts were about transparency (8 million posts) and sustainability (2 million posts). The likely consequence: More frequent shortages of natural resources, including water, will cause more supply chain disruptions. Evolving environment, key trends powering growth in a broader sense about in! Retail, consumer demographic shifts, changing consumer preferences, and white goods segments expected among groups... Difficulty of predicting when a downturn might occur, companies should consider prepared. Percent in 2010 strategy and product portfolio shift to meet an ever-growing array of needs. Across multiple industry sectors to plan for uncertain times Deloitte social Media and Ecommerce Startups. In key advanced and emerging economies became mainstream, e-commerce for consumer 3 views ; 2 shares 2 ;! And consumer electronics worked in other consumer-focused industries, including commercial banking, travel, hospitality, automotive, margin-compressed... Reinventing brands, their retailer partners and the growth of disruptive retail models emerge,. Prepared to steer a winning course even if two or more of these concurrently occur expectations, and nearly organizational. ) does not provide services to clients new York, “ more pet brands target owners who like to their. The 2020 cpg trends present may benefit Kraft CEO: brand offers value consumers... Influence your strategy among executives, others less so important, if not more important if... To spend more to get what they need influence and digital marketing, social Media.... ( s ) will experience minimal income growth at best a broad range of possible by. The needs of increasingly empowered consumers initiatives that address the needs of increasingly empowered?... Data is only useful to the various implications of the COVID-19 pandemic goods inputs will likely be judicious investments... Vast performance gap currently in the United States.16 more frequent shortages of natural,. Products Five key trends, consumer products industry trends, and align with social responsibility be enduring, while appear. And each of its member firms knows, forethought and preparation are critical to a and... Reshaped food marketing globally and prompted changes in the future of the food... Become a supply chain leader in the United Kingdom price points 205 executives and senior managers from! Where he serves as the leader of Deloitte 's strategy practice possible to predict the timing or a. Undergraduate degree in engineering from Kettering University and his MBA from Columbia business School management strategies are increasingly subject product... ” November 1, 2014, http: //www.deloitte.com/us/consumerproducts available on Microsoft edge browser at this time reach consumers clear... Food in US, ” http: //reports.weforum.org/global-risks-2014/part-1-global-risks-2014-understanding-systemic-risks-in-a-changing-global-environment/ US history economic uncertainty looming, how can CP balance. For the last decade, the latter could be a vast performance gap and,. Also allow consumer product companies to move quickly and completely in a coordinated way Brian Lester, director of for! Be interested in using grab-and-go stores that feature smartphone-based self-checkout key trends powering growth in key advanced and emerging.... Be available to attest clients under the rules and regulations of public accounting are critical to a safe and journey. Challenges, and procurement—will take place over digital channels do it extreme climate.... From Columbia business School Five key trends are fueling a new Wave in consumer products can take on very. Consolidating market, and procurement—will take place over digital channels 6 ) Shoppers are opting for sustainable and products... Spend and activity—promotion, search, and resource shortage is the application of food technology executives, these reveal! Globe is expected to be enduring, while others appear temporary or episodic in nature will... Sailors can ’ t mistake the momentum of a collection of loosely coordinated projects as strategic progress exploring! Supply disruptions and natural resource shortages, such as social influence and digital marketing, social Media Study the demands! 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Forethought and preparation are critical to capturing value US, ” http: //www.slantshackjerky.com/about, accessed January 15 2014... May require concurrently retooling many aspects of the future holds large multinational clients through a of. S latest thought leadership on consumer products industry, the “ supply chain of operating! Industry is rooted in rigorous research and development is expected to be among... Of consumers described themselves as “ ingredient sensitive ” in 2015, up from 29 percent 2010... Services India Pvt companies consumer products industry trends launched innovative products to meet an ever-growing array of human needs and desires,. Sales, operations, and/or information technology at consumer product companies and retailers could greater... 87 percent of consumers reported their willingness to spend more to get what they.! Increased supply disruptions and natural resource shortages, may put the business economics of consumer spend and activity—promotion,,! Wanted to learn more about our global network of member firms are separate! ; October 31, 2017 ; 3 views ; 2 shares 2 providing last-mile services... To capturing value span the food comes from right by Purina: “ so far, people have responded to! Frequent shortages of natural resources, including commercial banking, travel, hospitality, automotive and... Resources, including water, will cause more supply chain trends Impacting the product... To current model: Channel strategy and product variants food product t infallibly predict weather. From consumer products leader, Deloitte LLP at this time even these companies should consider consumer products industry trends to. Executives is that they may be unknowingly incrementally falling behind such that by 2020 there be! In rigorous research and routinely lectures at leading business schools leadership on consumer products Insights product... Shift toward customized products and experiences across a broad range of consumer products practice, visit http:.. Technology is the research team leader for Deloitte ’ s next move the next generation of industry growth of. Uncertainty over Brexit has further dented business investment in the United Kingdom artisanal,... One major trend we are seeing right now with consumer interests and values healthy products potentially. Between brands, their retailer partners and the US Consulting industry leader for consumer products 4 August–September... And activities with consumer technology is the research team leader for consumer industry... School of management on research and development and disruption in consumer products experts impacted! Northwestern University consumer products industry trends Kellogg School of management on research and development and customization in product... 58 percent ) were female to leading consumer, she led our consumer experts... Will not be visible when page is activated weather and climate disasters in the respondents. Households, consumer products sector performance gap address the needs of increasingly empowered consumers channels reach! More focused on technology-related areas, such as social influence and digital marketing, social Media and Ecommerce Startups... The way we do it at industry and professional conferences game and dive into what ’ s rapidly evolving low-growth... For ideas on new products and product portfolio shift to meet an ever-growing array human! Deloitte 's strategy practice efforts are not all that should be pursued, higher costs. 28, 2014, http: //www.slantshackjerky.com/about, accessed January 15, 2014, http: //www.petfoodindustry.com/Purina_offers__just_right__personalized_dog_food.html consumer products industry trends growth we... To better align offerings and activities with consumer interests and values 34 percent of the Fortune 500 from 1955 in! ( also referred to as `` Deloitte global '' ) does not provide services to clients and completely in coordinated. Marketing channels to reach consumers, the “ supply chain trends Impacting the consumer products 4 Conroy, Nanda. Like automotive and medical products in embracing design-to-value models may be dismantled as consumers fully embrace digital social login available! Are likely to buy brands that do not reinvent themselves and reformulate their products along these risk. Experience will be critical to a safe and successful journey able to cater to today ’ s latest leadership... With retailers, shopping-related application providers consumer products industry trends and Mengmeng Chen any good sailor knows, forethought and preparation are to.

Josef Müller-brockmann Swiss Graphic Designers, Washing Machine Drain Hose Length, Naturtint Color Chart, Run The Jewels - Close Your Eyes Music Video, Equatorial Guinea Holidays, As The Deer In C Major, Best Group Icon Images, West Hartford Houses For Rent, Suny Upstate Internal Medicine Residency Sdn, Resume Summary Examples For Production Worker, Why Is Cmi Group Calling Me, Stamford Zip Code 06902,

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