Retail and Consumer Insights: 2016 Financial Benchmarking and Industry Trends

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Changing consumer attitudes, behaviors, and preferences—compounded by sweeping changes in technology—have necessitated dramatic change in the consumer packaged goods (CPG) industry over the past decade.

Changing consumer attitudes, behaviors, and preferences—compounded by sweeping changes in technology—have necessitated dramatic change in the consumer packaged goods (CPG) industry over the past decade. The ongoing challenge to maintain market share is exacerbated by new entrants with innovative products and packaging—as well as a keener response to consumer concerns around issues that ranges from artificial ingredients to social responsibility.

Scale is not always the competitive advantage it used to be. And consumers are less predictable in their tastes—buying non-fat milk and premium, high-fat ice-cream, for example. Food manufacturers are continually having to pivot to keep up with quicksilver preferences.

In fact, 73% of consumer goods CEOs are concerned about shifts in consumer spending and behaviors, according to PwC’s 19th Annual Global CEO Survey. Meanwhile, barriers to entry are lower than ever as new entrants engage directly with digitally savvy consumers using data analytics, which allows sophisticated personalization and localization to target ever-more-differentiated shopper segments.

Top-performing CPG companies have successfully navigated this increasingly complex environment, despite challenges old and new.