The Top CPG Trends We're Carrying Into 2024
Hi, you. Look at you! All fresh and ready for 2024. ?
Now, let's reflect on the CPG 2023 trends most welcome back in the new year. From sustainable packaging and shoppy shops to data-driven grocery aisles and Gen Z tips, “Let it rip!” (Sorry, we’ve been watching “The Bear.”)
Fancy Snacks and Shoppy Shops
Gotta admit it: We still can’t resist the allure of a well-curated shoppy shop, the natural habitat (outside of Instagram) of brands like Fishwife, Graza, Ghia and Fly By Jing, to name just a few. The rise of Fly By Jing in particular offers an interesting case study on how cult-favorite status can lead to national distribution. Which artfully packaged CPG startup is likeliest to be 2024’s next big thing? We’ll continue to trust Snaxshot to let us know.
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Better-for-You < Delicious
Listen, we love a functional ingredient. We think kelp is magic and mushrooms are brain food. We celebrate a pre-, pro- and post-biotically nurtured gut. But sometimes a snack is just a snack, you know?
“No Health Claims Here, Just Delicious Puffy Goodness,” says the Ffups bag, and that’s exactly the kind of refreshing honesty we like to hear from a Tasty Tube. Cheers for keeping the f[GU1]?ocus firmly on flavor, Ffups!
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First-Party Data On Aisle 3
The demise of third-party cookies has ushered in a new dawn.
?For grocery retailers, 2024 promises a smorgasbord of innovative data-collection techniques. Instead of relying on external crumbs, savvy grocers are baking their own data cakes.
·????? Loyalty programs, personalized apps, and in-store sensors are gathering a wealth of first-party data on customer preferences, buying[JL2]? habits and even in-store movements.
·????? Allows[GU3]? for laser-targeted promotions, personalized recommendations, and a deeper understanding of shopper behavior.
·????? Gives CPG brands an opportunity to delight customers in-store or online in real time.
Marketers are becoming contextual connoisseurs. Analyzing content, search queries, and social media conversations allows us to understand the context of a customer's online journey and deliver relevant ads and promotions based on recipe browsing, for example.
Interactive quizzes, surveys, and gamified experiences can entice customers to share their likes, dislikes, and even dietary restrictions. This zero-party data is gold dust for grocers, allowing them to tailor offerings, suggest healthy alternatives and create a truly bespoke shopping experience.
AI is the binding ingredient. Algorithms can analyze vast amounts of data, identify trends and predict future behavior. This allows grocers to anticipate customer needs, optimize inventory and even personalize pricing based on individual preferenc[GU4]?es.
Privacy concerns must be addressed with transparency and ethical practices. Building trust with customers and ensuring data security will be paramount. But when done right, data collection can become a powerful tool for creating a more personalized, convenient and delicious shopping experience for everyone.
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Spend Less, Experience More[JL5]?
Gen Z is redefining the meaning of value. They're not just price-conscious; they're experience-hungry. A Morning Consult study revealed that 52% of Gen Z adults took three or more leisure trips in the past year, driven by a "revenge travel" mentality after pandemic restrictions. But they're also budget-savvy, as evidenced [GU6]?by a Student Beans survey showing an 83% decrease in non-essential spending and a focus on experiences with lasting memories.
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Sustainable Packaging Solutions
It’s no longer a niche trend, but a burgeoning movement. With continued commitment and ingenuity, we expect to see shelves stocked with products proudly housed in planet-friendlier packaging.
Driven by legislation like the EU's Single-Use Plastics Directive and California's AB 1276, brands are rapidly rethinking their packaging strategies. Unilever, for instance, pledged to halve virgin plastic use by 2025, replacing it with recycled content and bio-based alternatives. Patagonia embraced 100% recyclable packaging, while Kraft Heinz's paper-based ketchup bottle prototype offers a glimpse into a plastic-free future.
And it's not just big brands. Startups like Loop have built entire businesses around refillable systems, reimagining traditional models and inspiring larger players to experiment with refill stations and reusable containers.
Consumers aren’t just applauding, they're actively voting with their dollars. A 2023 Nielsen survey found that 73% of global consumers are willing to pay more for sustainable packaging, and a recent McKinsey report estimates that environmentally friendly packaging could unlock a $600 billion global market by 2030.
Of course, challenges remain. Infrastructure for recycling bio-based materials (i.e., bioplastics), collaborations across the industry, etc. Yet the momentum is undeniable, creating fertile ground for innovation and transformation.
Weekend Reads
·????? From covering the rules on tipping to the rise of “Breakup Brunches,” explore the weird and unique crevices of the restaurant industry with Grub Street’s 20 Most-Read Stories of 2023.
·????? Several TikTok trends caught our attention this year, including The Roman Empire, Tube Girl, and these clunky red boots that are more horrific than the tales of Grimace milkshakes. Didn’t catch those references? Brush up with the NYT’s Top Social Media Trends of 2023. (NYT: Madison Malone Kircher)
·????? The girlies clearly won in 2023. Barbiecore, Taylor Swift, and hair bows have swept the nation this year. Peruse the rest of this year’s “Girl” trends in The Ringer’s 2023 “Year of the Girl” roundup. (The Ringer: Nora Princiotti)
·????? Were you a victim of “DeepSteaks,” a buyer of “Greatest Story Ever Worn” Levi’s, or, of course, witness to the world’s coating in a hue of hot pink? Check out more in Adweek’s “The 20 Best Ads of 2023.” (AdWeek: Brittaney Kiefer, T.L. Stanely, and Kyle O’Brien)
Peace,
The Maxwell Crew
P.S. You’ve got a whole lot of class, and a whole lot of style. Or in terms of Oxford’s 2023 Word of the Year: rizz, baby.
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