Demographic and economic shifts over the next ten years will dramatically reshape the growth of consumer packaged goods (CPG), according to new research from Nielsen which was presented today at the Consumer 360 conference in Orlando.
Categories that are likely to experience solid growth include ethnic health and beauty products, flour/shortening/sugar/yeast/eggs, and a variety of health-related goods such as vitamins and medications/remedies. The slowest growth categories are expected to be toys and sporting goods, breakfast foods, baby care and pet products.
In just ten years time, the face of America will change: fewer households will have children, the population will age and lower-income consumers will expand. Additionally, the majority of new families will be multi-cultural in less than two decades.
“The demographic shifts underway create both challenges and opportunities for CPG marketers, and companies that anticipate the shifts could have a competitive advantage,” said Doug Anderson, Senior Vice President, Global Research and Development at Nielsen. “It will be absolutely critical for CPG companies to adapt in order to gain the attention and brand loyalty of the aging Baby Boomers, multi-cultural families and lower-income consumers of the future. Those who keep doing what they’re doing today will be left behind.”
Read a more detailed description of the demographic changes that will affect the CPG industry here.