Demand for consumer packaged goods (CPG) will slow from the extreme highs experienced during the Coronavirus disease (COVID-19), but stay well above pre-pandemic norms, even as vaccines become widely available, according to a report released by the Consumer Brands Association.
Though Consumer Brands expects 2021 CPG purchases to decelerate between 1% and 2% from 2020 levels, the anticipated annual rate of purchases is expected to grow by 7.4-8.5% compared with 2019 levels, indicating a fundamental change for the industry.
“Over the last year, the CPG industry has met unprecedented demand by being unafraid to change the game,” says Geoff Freeman, president and CEO, Consumer Brands. “There is no ‘normal’ to which the industry will return — urgent transformation is the only way forward. From elevated demand to supply chain to managing waste, everything about the consumer packaged goods industry is in the midst of dramatic change and capitalizing on enormous opportunities.”
From Consumer Brands Association:
- Transparency demands accelerate on consumer expectations, government requirements and new digital fluency after a year of virtual living.
- The trust in companies that grew during COVID-19 will evolve into businesses assuming the role of societal change agents and forces for good.
“America has been fundamentally changed by the pandemic and will not go back to what was considered normal in February 2020. Rather, a new normal will emerge, redefined by the experience of the last year,” says Freeman. “The question for the CPG industry is how this redefined normal will translate to its business and the consumers it serves. This new report answers this question and charts the course ahead as the CPG industry emerges from the pandemic more resilient, trusted and prepared to meet the needs of consumers, every day.”
