CPG Trends Reshaping The Industry in 2024

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By: Manish Shewaramani

6 CPG Trends Reshaping The Industry in 2024 And How PIM Can Help

The Consumer-Packaged Goods (CPG) landscape has undergone a profound transformation over the past 18 months. Shifting consumer preferences, the emergence of conscious consumerism, and advancements in technology have presented both challenges and opportunities for CPG companies.

Coca-Cola.

It’s a perfect example of how the well-established CPG brand effortlessly adapted to the CPG trend, skillfully balancing tradition and innovation.

By embracing the Direct-to-Consumer (DTC) approach, Coca-Cola broadened its presence with the DTC Coke On app in Asia, creating new opportunities for consumer engagement. This change isn’t just a response to shifting consumer preferences; it also emphasizes the crucial role of Product Information Management (PIM) in facilitating a smooth transition.

How exactly does PIM contribute to this transformation, and what trends will it lead in the CPG landscape in 2024? In this blog, we will delve into the top six CPG trends that are set to dominate in 2024, with a special focus on Product Information Management (PIM) and its pivotal role in navigating these trends successfully.

CPG Trends Reshaping The Industry in 2024

CPG Trends Reshaping The Industry in 2024

1. Direct-to-consumer (DTC) Dominance

The Direct-to-Consumer (DTC) model has emerged as a game-changer CPG trend for companies, especially after the global pandemic. As e-commerce sales continue to soar, embracing DTC becomes crucial for building brand loyalty and enhancing customer retention. Notable industry giants like Proctor & Gamble and Coca-Cola have successfully pivoted towards DTC strategies, launching innovative brands and expanding capabilities globally. In 2024, DTC is poised to be a catalyst for rapid industry growth.

PIM facilitates the management of extensive product information, ensuring accuracy and consistency across various channels.

With the rise of Direct-to-Consumer (DTC) models, having a centralized repository for product data enables CPG companies to provide a unified and compelling brand experience. PIM streamlines the process of updating product details, ensuring that information across e-commerce platforms and websites is always current. This not only boosts operational efficiency but also enhances customer trust by presenting a cohesive brand image.

2. Live Streaming Redefines CPG Marketing

Live streaming has become a dynamic force in CPG marketing, riding on the wave of increased video content consumption and heightened connectivity. The adoption of live commerce, particularly in Asia, has proven immensely successful in boosting sales and engaging audiences. As we navigate 2024, live streaming is set to redefine how CPG brands connect with consumers in real time.

PIM ensures that product information is rich and ready for real-time engagement, a crucial element in the era of live streaming.

As live streaming gains prominence in CPG marketing, the need for engaging and informative product content becomes paramount. PIM systems empower companies to enrich product information with multimedia elements, such as videos, images, and interactive features. This not only enhances the live shopping experience but also aligns with evolving consumer preferences for visually immersive content.

3. Evolving Consumer Expectations in a Post-Pandemic Era

The COVID-19 pandemic has not only accelerated consumer trends but has also given rise to new behaviors and preferences. The demand for subscription boxes has surged, and online shopping continues to be a significant driver of sales. CPG companies must leverage Customer Data Platforms (CDPs) to bridge the online and offline experience, ensuring a 360-degree view of consumers. In an era where expectations are higher, providing a seamless and personalized customer experience is paramount.

PIM enables the creation of personalized customer experiences by providing a 360-degree view of consumer preferences and behaviors.

In the realm of evolving consumer expectations, delivering personalized experiences is key. PIM serves as the foundation for Customer Data Platforms (CDPs), consolidating data on customer preferences, purchase history, and interactions. Armed with this comprehensive view, CPG brands can tailor marketing messages, recommend personalized product bundles, and anticipate consumer needs, thereby elevating overall customer satisfaction.

4. Sustainability Takes Center Stage

Sustainability has become a non-negotiable aspect for CPG companies, with 80% of the largest players committing to fully recyclable packaging by 2030. While meeting this commitment poses challenges, it is an opportunity to align with consumer values. Adapting to sustainability trends involves not only eco-friendly product positioning but also increased transparency in supply chain practices. For legacy companies, this shift presents a chance to enhance revenue and foster stronger brand affinity.

PIM facilitates the transparent communication of sustainability initiatives and practices, addressing the growing consumer demand for eco-friendly products.

With sustainability taking center stage, CPG companies can leverage PIM to communicate their environmental commitments effectively. By incorporating details about eco-friendly packaging, supply chain sustainability, and product life cycles, brands can build trust with conscious consumers. PIM ensures that this information is consistent across all channels, reinforcing the brand’s dedication to sustainability.

5. Omnichannel Speed: Navigating the Hyper-Connected Consumer Journey

In the age of hyper-connectivity, consumers seamlessly transition between online and offline channels. CPG companies must invest in robust data infrastructure to meet omnichannel expectations. Sephora’s integration of AR technology and tablets to enhance in-store shopping experiences serves as a model for brands looking to bridge the gap between digital and physical retail spaces. In 2024, delivering fast and smooth omnichannel experiences is imperative for retaining customer loyalty.

PIM supports the creation of consistent and seamless omnichannel experiences, aligning with the expectations of hyper-connected consumers.

The omnichannel speed demanded by today’s consumers requires a unified approach to product information. PIM ensures that product details are harmonized across online and offline channels, allowing for a smooth transition between different touchpoints. Whether a consumer engages with a brand through a website, mobile app, or in-store, the information remains accurate, contributing to enhanced customer loyalty.

6. Multi-Channel Marketing in the Digital Landscape

Traditional marketing channels are witnessing a decline in favor of digital alternatives. CPG brands are reallocating budgets, with digital ad spending increasing by 31.7% in 2021. The rise of influencer marketing has further revolutionized the industry. As CPG companies continue to embrace the digital landscape and CPG trends, a multi-channel marketing approach becomes essential for reaching and engaging diverse consumer segments.

PIM empowers CPG brands to efficiently manage and adapt their digital marketing efforts, aligning with the shift towards multi-channel strategies.

As digital marketing becomes increasingly dominant, PIM streamlines the creation and distribution of product information across various digital channels. From social media and influencer collaborations to SEO and content marketing, PIM ensures consistency and accuracy. This efficiency allows marketing teams to focus on crafting compelling narratives rather than grappling with data inconsistencies.

Wrapping Up: Navigating the CPG Trends with PIM

As the CPG industry navigates the intricate landscape of 2024’s trends, PIM emerges as a strategic ally. From optimizing DTC strategies to enriching live streaming content, ensuring sustainability communication, and fostering omnichannel consistency, PIM empowers CPG brands to keep pace with trends and lead in an era defined by constant change.

By embracing PIM technologies, the CPG industry can foster innovation, enhance customer experiences, and lay a robust foundation for sustainable growth in the years to come. Connect with a PIM expert to explore how it can benefit your CPG brand.

Say goodbye to data chaos and embrace the power of PIM/MDM to supercharge your business growth!