CPG Demand continues to show strong growth

With the shift in consumer behavior due to Covid-19, the CPG industry is forecasting more positive growth into 2021. According to Business Wire- at all points through the end of 2020, demand for edible goods, even in the worst cast scenario is expected to grow compared to same time last year. With consumers looking at ways to avoid the risk on contracting the virus; curbside pickup, grocery delivery, and meal-kit companies have become more popular. With a shift in buying behavior, companies are being innovative in how they market to the average consumer with new perks and subscription services that make online shopping more attractive.

According to IRI, the two segments that have seen a decline beginning the week of 7/12 are tobacco and deli prep. This could be due to two factors, consumers wanting to change their habits and quit smoking and also with Deli Prep in groceries stores there is more contact on surfaces. Companies have to look at new opportunities in a “new normal” and also look at scenario simulations and how this will impact consumer spending and habits.