The Top 2024 Global Trends and their Impact on Pricing for the Consumer Packaged Goods (CPG) Industry

For 2024, the overarching theme is for the consumer packaged goods industry (CPG), meaning that maintaining customer loyalty will be challenging.

Globally, consumers are feeling increasingly “pressured” according to a 2024 Nielsen report. This shift in consumer sentiment is starting to impact the consumer packaged goods (CPG) industry and their pricing decisions. Raising prices indiscriminately will no longer result in the easy quick wins of the past few years, as price sensitivity increases. More companies will be pushed into shifting to a revenue growth management framework and optimizing for price. Related to the consumer pressures are the ongoing challenges posed by supply chains and other rising costs. CPG manufacturers are facing tough decisions on absorbing costs versus passing them off to customers.

While pricing for CPG manufacturers is becoming more complicated and differentiated than ever before, the picture is not all doom and gloom. Even as the challenges posed by a tough economic environment increase, there are opportunities to be had from investing in pricing strategy and capabilities. On the side of technology, we are excited about the implications of Direct to Consumer sales on customer data and the insights it can enable. In the below article, our pricing experts reflect on the global trends, how they impact pricing, and what the recommended course of action is.

Contents

1. Pricing for Consumers under Pressure from Rising Inflation and Economic Uncertainty
2. Shifting to Private Label Brands
3. Adapting to Shifting Consumer Preferences
4. Navigating Supply Chain Challenges
5. Direct-to-Consumer (DTC) and E-Commerce Revolution Continues to Grow
6. Identify and Act on Opportunities in the Moment
7. Embracing Omnichannel Strategy for Pricing
8. Final Thoughts on Pricing Insights for 2024

Pricing for Consumers under Pressure from Rising Inflation and Economic Uncertainty

Over the past year, rising inflation and economic uncertainty has led to increasing concerns in consumers about the cost of living and a coming recession. Inflationary pressures are also being faced by CPG companies as costs increase but their ability to raise prices without impacting volume is diminishing. This shared reality essentially forces two outcomes. On the one hand...

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