The State of CPG

Rethinking CPG as a net positive for today’s environmental and societal challenges.

Over the last half century, the CPG industry has delivered brilliant household and lifestyle innovations that have ushered in an era of unparalleled convenience and freed families to spend their time on things that matter to them. But this hallmark of American prosperity has come with significant societal and environmental tradeoffs.

It’s time we talked about the state of CPG.

?The origin of the CPG industry can be found in post-World War II optimism and innovation. The world was rebuilding from conflict, the appetite for new ways of thinking and doing things was strong, and a life-is-short-let’s-live-it-up attitude reigned supreme. Women in particular were enjoying greater economic and social independence after dominating the wartime domestic workforce. Wartime innovations found peacetime applications, resulting in more affordable goods, manufacturing efficiencies, diminishing trade barriers, and globalized supply chains.?

?An era of economic prosperity followed, and that meant new, interesting products flooded the marketplace. Convenience, novelty, and plastic reigned supreme. Once frontier-minded Americans traded their inclination towards long-lasting, quality goods (and the desire to mend and maintain their possessions) for an attitude of easier-is-better. Freed from tending and mending, people had more time for leisure. However, that American mindset shift has since had far reaching global effects.?

Feeding the demand of post-WWII consumerism has come at a steep price. The mass production generated by traditional CPGs has depleted entire resource ecosystems, emitted devastating levels of CO2 into the atmosphere, led to hundreds of thousands of tons of toxic materials and plastics ending up in oceans and rivers, and driven entire populations into poverty due to resource hoarding, automation, and exploitation.?

Research suggests that individual modern households living by the promise of 1950s CPG are responsible for as much as 60% of greenhouse gas emissions. At the same time, businesses deployed the most sophisticated marketing and advertising strategies to date, and in turn shaped culture, consumerism, and the exhaustive CPG brand portfolios we know today as household names.?

We are living in a world that traditional CPG has defined and shaped, but post-war optimism has given way to reality. Modern consumers, especially Millennials and Gen Z, are no longer blind to the impact of convenience and their consumer choices, even if their busy lives still demand it. They know they must consider how they are irrevocably shaping the world in real time.??

That knowledge underscores a deep need and desire for solutions-oriented optimism. Consumers don’t want to be scared or shamed into purchasing. People want to be a part of what feels good. This is key to longevity and impact with social change movements. Households and individuals don’t want to make moral compromises to take advantage of convenience, but they also want options that preserve the status quo of their lives. They know something has to change.

In short, we need to rethink our model of consumption. It’s time for CPGs to meet the moment and provide solutions for today.

That’s where Green Park comes in. Over the last six years, we’ve worked towards a new conception of CPG, and we’re already making headway. We don’t figure out what to sell in order to make money. We figure out what needs fixing, and then we build a profitable business around solving that problem.??

It’s true that many businesses fund impact initiatives as a component of their brand building, but this perspective relegates impact to a costly line item on a P&L statement. When global impact and community responsibility are thoughtfully integrated into every aspect of a brand —?product development, production processes, materials sourcing, employee care, etc. — then business success is inseparable from mission.

?Our portfolio of brands reflects this focus on simultaneously addressing consumer needs and structural problems. For example, Hippeas created a healthier snack (vegan, organic, and non-GMO plant-based protein) out of chickpeas, which in turn supports cultivation of chickpea plants that naturally release nitrogen back into the earth, helping restore depleted soils. HoldOn came out of a recognition that we could avoid the environmental harm caused by single-use plastic bags by creating plant-based, compostable bags that would hold up to consumer demands. Meanwhile, Betr Remedies gives consumers the opportunity to fight back against a broken healthcare system by stocking their medicine cabinet with essentials, while giving back to charities that match Americans in need with medication that would otherwise be wasted. And Reel gives households a way to reduce deforestation with sustainable bamboo-based paper products, while providing access to clean toilets and better hygiene across the world.?

Next-gen consumers are ready for this shift in CPG. We know that secular values and lifestyle choices often steer how consumers connect with others. When brands aid this process by providing innovative alternatives that contribute to a better future, consumers and brands both benefit. It gives consumers a reason to feel good about their purchasing decisions, which in turn builds brand loyalty and brings like-minded consumers together. That dynamic creates an experience of community, which can further motivate consumers to engage and grow with the brand, as well as encourage others to join.?

That means consumers don’t have to choose between their conscience and convenience. When business and mission are intrinsically linked, CPGs can give consumers solutions they feel good about. In turn, they’ll reward brands with their loyalty, advocacy, and dollars. It’s a win for consumers, a win for brands, and a win for the future world we’ll inhabit. The only sacrifice we need to make is an obsolescent model of consumerism. And considering how that’s been working out for us, how big of a sacrifice is it, really?