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Accelerating Growth

What to do when consistent growth is elusive.

Growth strengthens consumer packaged goods (CPG) companies and fuels value creation. But consistent growth has become elusive in recent years. Scale used to drive growth, but today, small CPG companies significantly outperform their larger counterparts. What accelerates growth today? CPG leaders must understand that the consumer is boss and find new ways to address changing customer preferences and gather better data about emerging market trends.

Growth drives more value than cash or margin short term and three-quarters of value long term…but more than half of companies fail to grow or destroy value in the attempt.

How Winners Spark Growth

Overall growth for US consumer packaged goods companies rose only slightly in 2014. What separated the winners from the also-rans?

Winners Capitalized on Important Industry Trends

  • Macro-volatility and protein cost inflation creating pricing opportunities in food and beverage categories
  • Consumers accelerating trading up and down, creating premium and value growth
  • Population and spending growth in three key demographics—seniors, Millennials, and Hispanics
  • Consumers looking to break the food and beverage compromise between health, taste, and convenience
  • E-commerce expansion in grocery creating growth opportunities for early movers

Bottom line: Growth is possible for CPG companies of all sizes, categories, and price tiers—with carefully targeted approaches.

Consumer Products Industry
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