Consumer goods companies recognize growth requires more than waiting

Consumer goods companies are rethinking their approach to growth. After two years of expecting volume to return naturally once pricing stabilized, industry leaders at this year’s Consumer Analyst Group of New York (CAGNY) conference acknowledged that a different strategy is needed. Rather than waiting for consumers to adjust to higher prices, companies are now focusing on how to re-earn consumer loyalty and spending in an evolving marketplace.

Here’s what PwC leaders observed at the conference: Companies are balancing the value equation, modernizing power brands, renovating core SKUs rather than proliferating extensions, and aligning innovation with today's wellness-focused consumer. Based on what we heard, the industry recognizes a new reality: Growth won't return on its own, and companies that continue to expect spending to normalize risk falling further behind in an increasingly competitive landscape.  

A consistent playbook comes into focus. To win back consumers, many leaders said they expect to find ways to deliver greater value, or perceived value, without undermining their margins. That can take various forms. Sometimes, it could mean refreshing the look and feel of a long-standing “power brand” so it better resonate with the modern consumer—including reworking packaging, messaging, claims, and benefits. Other times, delivering greater value means investing in good-better-best product ladders and accessible price points. Companies are also shifting the target of their promotions, no longer aiming only to move product, but also to build the category. Finally, companies are deepening their retailer partnerships—including expanded data-sharing and clean room collaborations—fighting a volume fight through the power of joint growth.

AI moves from advantage to table stakes. No surprise, AI was discussed across presentations and panels at CAGNY. But similar to what our teams noticed at January’s National Retail Federation Big Show, it’s increasingly viewed less as a differentiator and more as foundational capability. In marketing, AI is enabling greater content velocity and personalization, two must-haves to publish on social media at scale. In operations, it’s enabling the next wave of productivity—supply chain automation, smarter planning, procurement, customer service, and faster innovation cycles. With easy cost reductions mostly behind them, organizations now rely on structural productivity to fund reinvestment.

As algorithms increasingly shape purchase decisions, companies should prepare for a world where they’re not always selling to a human shopper. We noticed home and personal care brands are engaging more directly with this shift, while food and beverage players remain quieter. If AI agents begin regularly executing buying decisions on behalf of consumers, the implications may be structural—reshaping brand equity, trade spend, packaging, retail media economics, and even how products are designed for machine readability.

A disciplined portfolio transformation continues. Companies still consider portfolio transformation central to their growth narrative. That was evident as each company at CAGNY had a chance to present—and almost all of them shared an M&A story, whether it was a recent acquisition, a divestiture, or a spin-off. Leaders said they’re actively reshaping their mix toward higher-growth, higher-margin, or more capability-aligned categories.

Leaders made clear the work is far from finished. Expect companies to further prune non-core assets as they clarify how they can truly win through simplification. In this lower-growth environment, discipline matters even more. The question is how aggressively companies are willing to realign around their core sources of competitive advantage.

Wellness drives innovation. Wellness continues to be a major driver of innovation, and plenty of conference discussion centered around creating products that have tangible consumer benefits. As GLP-1 usage increases, companies are reformulating and repositioning their portfolios around protein, fiber, and satiety. Even micronutrients like copper, zinc, and iron have gained traction. The cycle is accelerating, and many companies are still responding one wave behind.

Hydration was another growth trend that continues to surface as consumers vary their consumption to match the occasion or a wellness-centered need. Companies are elevating hydration as a core growth pillar—targeting performance, recovery, and everyday functionality. Wellness-fueled innovation is less about novelty and more about improving the consumer value equation. It’s designed to earn back volume and restore operating leverage.  

Power brands dominated the narrative, and we heard less discussions about insurgent brands as strategic growth engines within portfolios. But insurgents can help legacy brands attract younger consumers, defend against private labels, and stay focused. They can play a strategic growth role in companies’ evolving portfolios, but too many organizations are missing the opportunity, comfortable leaving disruption to entrepreneurs. We also expected more dialogue on new macro growth vectors beyond the U.S. and China. Instead, the focus stayed tactical: regaining trips, optimizing channels, and managing pricing.

Commodity-exposed companies navigating volatility and margin pressure are particularly exposed to changes in tariffs, but smart leaders are rightfully keeping an eye on the latest. The conversation at CAGNY intersected with a major policy development: the U.S. Supreme Court ruled that the International Emergency Economic Powers Act (IEEPA) does not authorize broad tariffs, undercutting a key source of import duties and raising questions about refund eligibility for duties already paid.

Companies seek clarity on exactly how rebates and future tariffs may impact them. Some expect limited exposure following the Supreme Court’s ruling, while others had already built contingencies into their sourcing and pricing strategies. One way or another, market volatility shows no signs of slowing, which means companies should continue to pursue better agility and pricing as they source materials.  

The structural forces that defined past CAGNY conferences aren’t reversing. In fact, many of them are only becoming more pronounced, including consumer fragmentation, media decentralization, wellness focus, and AI-enabled commerce. In response, consumer goods companies say they’re ditching the wait-and-see approach, taking action to improve velocity, margin, and service, while limiting waste.

As the industry takes accountability for its future, the companies that pull ahead should do three things successfully: make their core stronger and more relevant, create new demand pockets across channels and occasions, and industrialize productivity to fund reinvestment.