Think about the last time you bought toothpaste, chips, or laundry detergent. Chances are, you didn’t think twice about stocking up on your favorite brands. But behind the scenes, consumer packaged goods (CPG) brands are in the middle of a major transformation. In 2025, they’re rethinking how they sell, market, and stay relevant to consumers like you.
Traditional shelves are no longer enough. Today’s consumers expect personalized products, easy online shopping, and brands that anticipate their next move.
The best part is that the opportunity is massive for those brands ready to adapt. Consumers worldwide are expected to spend $3.2 trillion more in 2025, which is nearly 6% growth from 2024 alone.
In this post, we’ll explore how the best CPG companies maintain a competitive edge in this new digitally driven space—and how your brand can succeed too.
What are consumer packaged goods (CPG)?
Consumer packaged goods (CPG) are nondurable products people purchase and consume quickly. You can typically find CPG goods in grocery stores, pharmacies, and convenience stores.
Three key components define a CPG:
- High turnover rate
- Necessary in everyday life
- Consistent consumer demand
Examples of packaged consumer goods include:
- Food. Snacks, cereals, frozen meals, and beverages
- Household items. Cleaning products, toilet paper, and batteries
- Personal items. Cosmetics, toiletries, home remedies, hygiene products, and over-the-counter medications
Consumer packaged goods are not the same as durable goods—items like washing machines, which last for years, if not decades.
The consumer packaged goods industry is highly competitive, with manufacturers and retailers focusing on brand loyalty, advertising, packaging, pricing strategies, and distribution networks to capture market share.
CPG vs. FMCG: What’s the difference?
FMCG, or fast-moving consumer goods, describes the fastest-selling items in this category, such as milk, bread, soda, and toilet paper. These items fly off the store shelves and constitute daily or weekly purchases.
CPGs can vary widely in cost and packaging size, but FMCGs typically have a lower cost per unit and are sold in higher volumes. Although FMCGs are often perishable, this is not always the case. For instance, milk is an FMCG, but so is Coca-Cola.
While FMCG is technically a subset of CPG, the two terms are often used interchangeably. The key idea is FMCGs are products with high turnover and frequent repeat purchases, whether they’re perishable or not.
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Trends in the CPG industry
- Market growth and economic outlook
- Sustainability and eco-friendly innovations
- AI and technology transformation
- Private label growth
- Direct-to-consumer strategies
The CPG space is entering a period of accelerated change. In 2025, North America’s CPG market is projected to reach approximately $1.5 trillion in output value. Shifts in demographics, shopping behavior, and digital engagement will redefine how brands grow and compete.
Here are the top five CPG trends to look out for in 2025:
Market growth and economic outlook
Global consumer spending on CPG products is projected to increase by nearly 6% in 2025, adding approximately $3.2 trillion in spending compared to 2024.
This growth is being fueled by a mix of behavioral, digital, and geographic trends, including:
- Digital sales acceleration: Online sales of CPG products rose 10% over the past year, far outpacing the 2% growth seen in physical retail. As more consumers prioritize convenience and flexibility, this number is set to continue to grow.
- Omnichannel shopping behavior: In the US, 86% of CPG dollar sales now come from shoppers who engage across both digital and in-store channels. Consumers need integrated experiences that meet them wherever they choose to browse or buy.
- Emerging market expansion: In 2024, emerging markets recorded an 11% year-over-year increase in retail sales value, more than double the growth rate of developed markets. These regions are expected to contribute more to global CPG expansion in future years.
Sustainability and eco-friendly innovations
Sustainability is a rising priority for CPG brands as consumer expectations grow. In the past six months, 54% of consumers consciously purchased products with sustainable packaging. This demand is pushing companies to adopt recyclable, biodegradable, or compostable materials.
Leading brands, including PepsiCo, have pledged to use 100% recyclable packaging by 2030. Many are also introducing new sustainable CPG products, including organic, plant-based, and non-GMO options, to meet consumer consciousness around health and the environment.
AI and technology transformation
AI can help CPG companies innovate faster, improve operations, and better understand their customers. A 2025 McKinsey survey found 71% of CPG industry leaders have integrated AI into at least one business function.
For instance, AI can improve the product development process by analyzing customer insights and usage patterns to spot opportunities.
As for supply chain strategies, AI can automate forecasting, inventory planning, and waste reduction, which will help protect your profit margins.
Private label growth
Private label brands have evolved. They’re no longer seen as cheap substitutes. Instead, they’re now go-to choices for value, quality, and convenience.
Half of global consumers are increasingly purchasing private label products, indicating a shift in brand loyalty and value perception.
In 2023, private label products accounted for 19.4% of global FMCG value sales. In Western Europe, that number hit 26%. And in 2024, over half of retailers expected private labels to be their primary growth driver, indicating a continued uptick in growth.
Direct-to-consumer CPG strategies
DTC strategies let brands control pricing, customer experience, and messaging from their own site. That also means owning your customer data.
Offering products on a subscription basis is one of the fastest ways to build consistent revenue. So it’s no surprise that many CPG brands are embracing this business model.
CPG ecommerce strategies for 2025
- Test a subscription model
- Use an omnichannel strategy
- Make your online shopping experience user friendly
- Embrace content marketing on different channels
- Tap into customer data for personalization
As consumer habits keep evolving, CPG brands need fresh ecommerce strategies that engage customers directly and deliver personalized experiences across multiple channels.
Here are five actionable strategies to stay competitive in 2025:
1. Test a subscription model
Subscriptions drive predictable revenue and can help you build stronger customer relationships. Consider launching subscription-based offerings for regularly purchased items like toiletries, household products, or healthy snacks.
Make sure your subscription model includes convenience, flexibility (e.g., pausing or adjusting orders easily), and exclusive subscriber perks.
For example, Huron offers subscriptions on everyday grooming essentials like body wash and shampoo, so it’s easy for customers to stay stocked without lifting a finger.
2. Use an omnichannel strategy
Today’s consumers don’t think in channels. They expect a top quality experience whether they’re browsing online, shopping in-store, or engaging on social media. A true omnichannel strategy connects these touchpoints so that messaging, pricing, and service feel consistent across every interaction.
Shoppers are more likely to return when they can effortlessly switch between digital and physical experiences. Depending on your business, this may mean researching a product online, trying it in-store, and reordering through a mobile app.
Allbirds, known for its eco-friendly footwear, delivers a standout omnichannel experience. Customers can browse online, check store availability, and even return online orders in-store—making it easy to switch between channels without friction.
3. Make your online shopping experience user-friendly
Your digital shelf space is the online version of how products appear on physical retail shelves. It’s where first impressions are made.
Shoppers can’t pick up or try your product online, so every detail counts.
Start with the basics:
- Use high-quality images from multiple angles.
- Write clear and compelling product descriptions.
- Add usage instructions.
- Include detailed specs like size, ingredients, or materials.
A well-optimized and easy-to-navigate digital shelf can help you improve conversion rates.
For example, Tenzo Tea’s product pages load quickly, work well on mobile, and are consistent across platforms.
4. Embrace content marketing on different channels
Consumers increasingly rely on content marketing to inform their buying decisions. Create valuable, engaging content, like how-to videos, recipes, sustainability stories, or influencer collaborations to attract and retain customers. Tailor your approach to each channel’s audience, from TikTok and Instagram to YouTube and email newsletters.
For example, Beardbrand has built a massive following on YouTube with videos that go far beyond product promotion. Its content includes grooming tutorials, barbershop transformations, and personal stories from its community, offering real value and entertainment. Its blog is also packed with content that helps customers with beard grooming, hair care, and style tips.
5. Tap into customer data for personalization
Consumers expect personalized experiences. Rely on AI and customer data insights to deliver targeted recommendations, customized offers, and tailored marketing messages. According to Bain & Company, leading retailers adopting AI-powered personalized marketing have observed a 10% to 25% increase in return on ad spend for targeted campaigns.
The research also emphasizes that effective personalization builds authentic connections, making shoppers feel seen, valued, and engaged, which in turn builds loyalty and enhances the customer experience.
Successful CPG brands case studies
When Kat Kavner and Jaime Lynne Tulley launched Heyday Canning, they aimed to disrupt an overlooked grocery aisle: canned beans. “Canned food is this massive industry, but it’s just not top of mind because the shelves are filled with boring, commodity products,” Kat explained on the Shopify Masters podcast.
Heyday changed that, introducing premium-quality, flavorful beans targeted at convenience-minded, discerning consumers.
Breaking into CPG isn’t easy—products often seem interchangeable, and consumers frequently buy familiar brands out of habit. The key metric in CPG, Kat points out, is velocity: “How many units are you selling in each store every week?”
To drive sustainable sales volume, Heyday focused heavily on marketing. Free in-store samples, pop-up events, coupons, and well-funded viral marketing campaigns all helped establish Heyday and maintain momentum.
CPG FAQ
What does CPG mean?
CPG stands for “consumer packaged goods.” That includes frequently used goods like toilet paper, toothpaste, or bread.
How is CPG different from retail?
CPG, or consumer packaged goods, can be purchased at retail stores and on ecommerce websites. CPG is one sector in the broader retail industry.
What are the challenges facing the CPG industry?
The CPG industry faces challenges such as rapidly changing consumer preferences, intense competition, supply chain disruptions, and the need for continual innovation and sustainability initiatives.
How are CPG brands adapting to changing consumer preferences?
CPG brands are focusing on healthier ingredients, sustainable packaging, and more personalized products. Many brands are also shifting to direct-to-consumer sales, using social media to connect with shoppers, and relying on data to better understand what customers want.
What technologies are transforming the CPG industry?
AI, data analytics, and automation are leading the way. Brands use AI to personalize marketing, predict trends, and develop new products. Data tools help them understand consumer behavior, while automation can help optimize resources and improve supply chain speed.
