TL;DR: CPG revenue growth forecasts have come down, but digital remains a bright spot—leading brands are doubling down on online channels to grow market share.
4 minute read
Compared to 90 days ago, the CPG industry outlook has softened. While some companies outperformed expectations, several reported slowing revenue growth and/or lowered guidance, reflecting a cautious stance amid continued macroeconomic uncertainty, mounting cost pressures, and increased consumer price sensitivity.
The CPG industry is not in a downturn per say, but brands are facing a challenging environment. Price increases are no longer driving growth to the same extent as they were in the last several years, and brands must work harder to grow through volume, innovation, and marketing execution. In addition, winning in digital channels is paramount considering its growth relative to the flat-to-down growth outlook in physical channels we’re projecting for 2025.
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