What do you mean by trend? According to the Oxford dictionary it is a general direction in which something is developing or changing.
So, in essence trends reveal consumer preferences, guiding the CPG industry in innovation and marketing. Staying ahead of these shifts ensures products meet evolving demands. This alignment is key for brand relevance and market success.
Therefore as we move forward into 2024, it’s time we unveil the important trends that’s picking up this year. But before we jump onto that, let’s glance over what happened in 2023.
1. Nutri-Cosmetics: Beauty from Within
Nutri-cosmetics emerged as a leading trend, reshaping the beauty and wellness industry. Products like vegan collagen powders, advanced anti-aging nutraceuticals, and vitamin-packed supplements proved the prediction right. These offerings not only promised enhanced beauty but also improved health, tapping into the consumer desire for holistic wellness. The surge in green tea extracts and omega-3 rich products further cemented nutri-cosmetics as a trend that’s here to stay.
2. Healthier Habits: A Delicious Transformation
The prediction about the shift towards healthier habits was spot on. Consumers gravitated towards low-sugar, gluten-free, and low-alcohol options, with products like gluten-free cinnamon raisin buns and low-alcohol ales gaining popularity. This trend was not just about making healthier choices but also about indulging responsibly. It showed a significant consumer shift towards wellness without compromising on taste or pleasure.
3. Nootropics and Mood Enhancers: The Mindful Approach
Nootropics and mood enhancers witnessed a mixed trajectory. While there was a high interest in products designed to support mental well-being and cognitive performance, such as soft gels for pain management and focus-enhancing supplements, the mass adoption was slower than anticipated. This trend underscored the growing importance of mental health but also highlighted the market’s volatility and the need for further maturity.
4. Rekindling Togetherness: Community and Connection
The prediction about rekindling togetherness after the isolation experienced during the pandemic was accurate. Brands innovated to bring people together, both online and offline. Examples included cricket-themed beverages and augmented reality storybooks, which not only provided unique experiences but also fostered a sense of community. This trend highlighted a deep-seated desire for shared experiences and communal joy, proving that human connection remains invaluable.
Looking Ahead: Trends of 2024
It’s time to turn our attention to what 2024 holds!
The journey through trends is not just about predictions but about understanding the underlying shifts in our society and industries, preparing us to navigate the future with informed enthusiasm.
Trend 1: Greenprint for Growth
The data points that are shown above paints the picture of how crucial sustainability is, with a 4-year CAGR of +7.98. Consumers are understanding the importance towards sustainable practices and holding brands accountable for their actions. Greenwashing, where companies claim to be sustainable without backing it up, is a real concern, but many brands are genuinely investing in sustainable innovations. Transparency and education are key for brands to build trust with consumers. As we move into 2024, trends like waterless products and zero waste initiatives are gaining traction, showcasing the industry’s commitment to sustainability. Companies are rethinking traditional processes and products to address environmental concerns, demonstrating the power of innovation in driving positive change. Moving forward, brands should prioritize authenticity, transparency, and innovation to build trust and make meaningful contributions to sustainability. Utilizing tools like AI can help brands stay ahead of eco-friendly trends and consumer sentiments, ensuring they remain genuine and relevant in their sustainability efforts.
Trend 2: The Decline of Traditional Processed Foods
The decline of traditional processed foods has sparked concerns about health risks associated with ultra processed products, linking them to serious issues like cancer and diabetes. However, not all processing is bad, with methods like pasteurization ensuring food safety. This is due to the rise in no artificial preservatives and low saturated fat running at a 4-year CAGR value of +257.18% and +33.52% respectively. Brands like Good Catch and Sweet Earth are innovating with plant-based alternatives that prioritize sustainability and taste. It’s crucial for brands to be transparent and educate consumers about their products, emphasizing the importance of genuine storytelling and collaboration with health experts. While ultra processed foods offer convenience, there’s an opportunity to make them healthier without sacrificing ease of consumption, presenting a dual challenge and opportunity for brands to prioritize both convenience and health.
Trend 3: A Table for all
Navigating dietary requirements in food production is a complex balancing act, where taste, texture, and nutritional value must be carefully considered. Brands are rising to the challenge by innovating to cater to allergens and providing alternative protein sources.This can be supported by the above data points where no allergens and alternative proteins are running at a positive 4-year CAGR of +195.09% and +57.02% respectively. Nestle’s investment in allergy prevention and companies like High Food and Solar Foods developing allergen-free protein sources are noteworthy. Moreover, projects like a factory exploring mass production of plant-based proteins demonstrate a commitment to inclusive products. For brands, it’s about leveraging technology to understand consumer preferences and crafting marketing campaigns that highlight health benefits. Collaboration with biotech firms can drive innovation in this space, ensuring a diverse range of options for consumers. Ultimately, it’s about creating products that meet dietary needs without compromising on taste or quality, fostering inclusivity and consumer satisfaction.
Trend 4: Culinary Kaleidoscope
As we’re entering a new era in the consumer goods scene with the trend of navigating the fusion frontier. This trend involves mixing culinary styles from around the globe to create innovative products and unique experiences for consumers wherein from the above data you can see that unique flavors are at rise with a 4-year CAGR value of +78.57%. Brands like Second Nature Snacks and Cheetos are embracing this trend with global fusion trail mixes and unconventional flavor combinations like flaming hot cinnamon sugar popcorn. Moreover, brands like Doritos are leveraging AI to tailor products to specific consumer needs, such as developing crunch-canceling technology for gamers. This fusion of technology and food is all about creating immersive experiences and connecting with consumers on a deeper level. Moving forward, brands can tap into consumer desires by exploring untapped flavor potentials and leveraging digital engagement strategies to create meaningful connections and drive brand loyalty. It’s a fascinating journey where innovation, technology, and consumer insights converge to shape the future of the food industry.
Trend 5: Pennywise Provisions
Addressing the challenge of making nutrition accessible to all is crucial, especially in the face of rising inflation and budget constraints in both developed and emerging markets. Which is why affordability is a growing trend with a 4-year CAGR of +16.74%. While there’s a growing awareness of nutritious food, affordability remains a hurdle, prompting brands to innovate. Kellogg’s and Tata Sampan are rolling out wallet-friendly options like low-sugar cereals and fortified food products, while sourcing locally to cut costs and support communities. This trend towards balancing nutrition and affordability is expected to continue in 2024, with a focus on ingredient optimization and understanding consumer budgets and preferences. It’s not just about price; consumers also value convenience and alignment with their lifestyles, making it essential for brands to offer holistic solutions that resonate with their needs.
Trend 6: Generative AI
In 2024, generative AI (Gen AI) is set to revolutionize the CPG industry, moving from experimentation to mainstream adoption. To support that notion We can see from the above data point that technology is growing at a 4-year CAGR of +29.75%. From real-time analytics to AI-driven product development, Gen AI promises to reshape consumer understanding and innovation. Examples like Shah Rukh Khan’s digital twin in marketing and Coca-Cola’s personalized cards showcase its potential for scalable, personalized engagement. This strategic integration signifies a shift towards operational efficiency and groundbreaking innovation, accelerating the industry’s ability to meet consumer demands with unprecedented speed and precision.
Conclusion
Trends shaping the consumer packaged goods industry in 2024 reflect a dynamic landscape driven by evolving consumer preferences and technological advancements. Sustainability emerges as a central theme, with brands investing in eco-friendly initiatives like waterless products and zero waste initiatives. Transparency and education are key as companies strive to build trust with consumers by authentically aligning with green principles. Moreover, inclusivity takes center stage in food production, with brands addressing dietary requirements and allergens while providing alternative protein sources. Collaboration with biotech firms and investment in innovative solutions underscore a commitment to creating products that are both nutritious and inclusive, reflecting a broader societal shift towards wellness and diversity. Additionally, the fusion of culinary styles from around the globe drives innovation and unique consumer experiences, leveraging technology and consumer insights to develop immersive products and foster brand loyalty. As the industry embraces generative AI, it signals a new era of innovation, with AI-driven solutions reshaping consumer understanding and driving operational efficiency.
This comprehensive analysis provides valuable insights into the current landscape of the CPG industry, highlighting key trends, challenges, and opportunities that shape the future of consumer goods.
Download the Food & Beverages 2024 report to stay informed and ahead of the curve in navigating the ever-evolving consumer landscape.
