Self-care, sustainability and tech-enabled shopping will be among 2020’s top CPG trends
This post is sponsored by Acosta.
Many of the same trends that defined 2019 in the consumer packaged goods industry will continue to drive consumer behavior in the new year, according to predictions from Acosta.
"We expect to see continued growth in many of the categories that took off in 2019 such as self-care, CBD and plant-based food," said Colin Stewart, Acosta’s executive vice president of business intelligence. "Additionally, in 2020, retailers will focus on becoming more environmentally conscious, sourcing locally, keeping prices low and making the in-store shopping experience more enjoyable and tech-friendly."
Here’s a look at some of the top 20 trends Acosta leaders predict will define the coming year.
Consumers will continue to spend on self-care
Self-care is a $9.9 billion industry, and Acosta expects that to keep growing in 2020. Personal care products and services, as well as foods and beverages geared toward health and wellness, are cornerstones of self-care. Acosta also predicts the strengthening economy will spur consumers to indulge in more premium products. They also expect sales of functional foods with added health benefits, such as adaptogens and prebiotics, to continue strong growth, with sales of foods and beverages with added nutritional benefits projected to reach $275 billion by 2025.
Another product category that’s growing with self-care fans is cannabidiol. More than a quarter of consumers indicated they have used CBD oil, and more than half of non-users say they are open to trying it, an Acosta survey found. Sales of CBD products are expected to grow to $20 billion by 2024 -- a huge leap from about $2 billion in 2018.
Brands will keep shoppers engaged with experiences
It is projected that more than half of purchase decisions are digitally influenced, and as the relationship between e-commerce and brick-and-mortar stores continues to evolve, brands that can successfully integrate across channels will come out on top, Acosta predicts. Consumers increasingly expect brick-and-mortar stores to offer an engaging, enjoyable and entertaining store experience, and retailers who can deliver these experiences through methods like product sampling and cooking demonstrations will win shopper loyalty.
Look for food retailers to expand their fresh departments, prepared food options and in-store technology (like digital kiosks) in store remodels next year. About one in five US shoppers bought groceries online this year, and with online grocery spending expected to more than double by 2023, expanding click-and-collect features will also be top-of-mind for many retailers heading into the new year.
Sustainability will go from added perk to must-have
Concerns about the environment have been influencing purchase decisions for many years, but as the problems facing the planet become harder to ignore, shoppers are entering the store with an even more critical eye. Almost three-quarters of US consumers are willing to vote with their wallets for brands and products that are better for the environment, Acosta found.
From an emphasis on sustainability driving manufacturers and retailers to source alternatives to plastic packaging, to other approaches like stocking more local products, which generate fewer carbon emissions during shipping, sustainability will be a major trend in the coming year.
For more insights from Acosta, view the full report to see the complete list of 2020 CPG trend predictions.
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