In today’s dynamic market consumers have a high expectation of service and quality products. They want instant gratification and it is literally right at their fingertips. Through social media, reviews, feedback, and ratings they are able to discover if the product is right for them. Millennials, in particular, have matured into a fast-paced generation who want their goods and services immediately.
They have abandoned the brand loyalty of their parents and grandparents in favour of convenience, efficiency, and better products that reflect their likes and lifestyles. Hence, established brands are being challenged to keep on top of the latest trends and use them to quickly fill the consumer’s demands. Take a look at the different areas to watch in CPG trends for 2019.
- Artificial Intelligence is the newest way for the CPG industry to achieve growth. There is an excessive amount of data collected to discover a consumer’s preferences and using that data to target marketing campaigns and sales promotions is time consuming and overwhelming. That’s where AI comes in. Harnessing volumes of real-time data AI prioritizes and alerts relevant KPIs and reports for business experts to review while specifying the right business action that needs to be taken.
- Trade Promotion Optimization software captures and analyzes large amounts of real-time data from various sources so businesses can forecast sales, measure and optimize trade promotions, and set up goals and a budget.
- Business Intelligence Chatbots personalize marketing efforts and customer experience while providing continuous customer support. They also send alerts on new product launches and promotions. Among business users chatbots implement data-driven decision-making.
- Packaging will have cleaner labels and products will be high-quality with a large variety of selections. These things appeal to shoppers who are spending more time researching on how to save money, ways to be healthy, and how to become environmentally savvy.
- Marketing in-store shopping experiences as social ventures entice customers to engage with their peers and the venue. These in-store experiences include prepared foods and eating spaces, customized experiences, sampling, education, entertainment, and integration with smart phones for deals, personalized offers, and mobile pay.
- Consumers will continue to put their health and wellness first. They want products that have a positive impact on their bodies which means many food product companies are changing their goods to eliminate hidden sugars and address allergies to foods such as wheat, dairy, and nuts.
Watch For New Releases
As the year progresses, new developments in food and packaging will become available to the consumer. These new releases include:
- Zero waste edible straws made from seaweed or fruit.
- Bee’s wax reusable food wraps.
- A return to glass and plastic containers.
- Introduction of transparent containers that allow consumers to see the product before purchase.
- Label driven focus on sustainability and food path tracking.
- Flexible packaging that makes it easier to store, display, reuse, recycle, and take up less shelf space.
- Omnichannel use will become very popular this year as retailers focus on a seamless shopping experience for consumers that connects the physical store to digital shopping to click and collect.
- Grocery home delivery will expand to include prepared foods and complete meals.
- Click and Collect will continue to emerge as retailers refine implementation.
- Owners of empty retail space will seek out pop-ups for seasonal and limited time period uses.
- Struggling malls will transform anchor stores into entertainment venues with cinemas and arcades.
Traditional brands will find adapting to 2019 CPG trends challenging. However, doing so they will sell more products to current customers and attract new customers regardless of price increases. Brands that show consumers they are focused on their personal preferences glean success in the ever-changing CPG market.