CPG purchases will decelerate in 2021 as Americans emerge from the pandemic, but permanent lifestyle changes will keep demand elevated above past levels long after the vaccine is widely accessible, according to the Consumer Brands Association. In a new report, the CBA predicts five trends that will shape the CPG industry in 2021.
In addition to continued CPG demand, the CBA predicts that supply innovation will flourish behind the scenes, that there will be a new urgency to fix broken recycling systems, and an acceleration of digital transparency, as well as companies becoming agents of societal change.
“Over the last year, the CPG industry has met unprecedented demand by being unafraid to change the game,” said CBA president and CEO Geoff Freeman, in a statement. “There is no ‘normal’ to which the industry will return—urgent transformation is the only way forward. From elevated demand to supply chain to managing waste, everything about the consumer packaged goods industry is in the midst of dramatic change and capitalizing on enormous opportunities.”
“America has been fundamentally changed by the pandemic and will not go back to what was considered normal in February 2020. Rather, a new normal will emerge, redefined by the experience of the last year,” Freeman continued. “The question for the CPG industry is how this redefined normal will translate to its business and the consumers it serves. This new report answers this question and charts the course ahead as the CPG industry emerges from the pandemic more resilient, trusted and prepared to meet the needs of consumers, every day.”
Related: CPG Companies Propose Plastic Packaging Tax; Report: Most Shoppers Will Keep Some Pre-Pandemic Habits.