Consumer Packaged Goods (CPG) Market Growth, Size, Share, Trends, and Forecast 2030

Consumer Packaged Goods (CPG) Industry Prospective:

The global consumer packaged goods (CPG) market size was worth around USD 160.75 billion in 2022 and is predicted to grow to around USD 244.92 billion by 2030 with a compound annual growth rate (CAGR) of roughly 5.40% between 2023 and 2030.

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Consumer Packaged Goods (CPG) Market: Overview

Consumer packaged goods (CPG) are daily-use items that are consumed or used in some form by the average general population. These products have to be regularly replaced with new stocks and include items such as household commodities, food & beverages, makeup & personal care products, clothes, and other essentials. The CPG industry is one of the most competitive industries globally. The products appear as simple everyday items but the extensive number of players and the large chain of products offered by them has intensified market competitiveness.

Another key aspect of the industry is that the purchase cost per item is relatively low however, the investment cost is higher since consumer packaged goods are produced in bulk and are highly vulnerable to damage if they are stored under the wrong conditions. As opposed to durable goods, consumer packaged goods have a limited lifespan and must be used within their recommended shelf life to avoid being discarded without use. The rising population rate has further amplified the demand for CPG along with other factors.

Key Insights:

• As per the analysis shared by our research analyst, the global consumer packaged goods (CPG) market is estimated to grow annually at a CAGR of around 5.40% over the forecast period (2023-2030).
• In terms of revenue, the global consumer packaged goods (CPG) market size was valued at around USD 160.75 billion in 2022 and is projected to reach USD 244.92 billion, by 2030.
• The consumer packaged goods (CPG) market is projected to grow at a significant rate due to the rising population rate and increasing consumer awareness.
• Based on service segmentation, offline was predicted to show maximum market share in the year 2022.
• Based on type segmentation, food & beverage was the leading segment in 2022.
• On the basis of region, Asia-Pacific was the leading revenue generator in 2022.

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Consumer Packaged Goods (CPG) Market: Growth Drivers

Rising population rate and increasing consumer awareness to drive market demand

The global consumer packaged goods (CPG) market is expected to be driven by the rising rate of population along with an improving consumer awareness trend. The CPG industry consists of a large number of products that are daily essentials and a part of everyday activities. Some of these items are necessities for survival such as food products. However, since they are available in limited quantities, they have to be replaced quickly as opposed to durable items. Hence, the cycle of buying and consuming consumer packaged goods is perpetual and cannot be replaced. As the world population grows, the number of buyers and consumers will simultaneously increase.

As of 2023, the world population as per the United Nations has crossed the 8 billion mark. By 2050, as per official projections, the population strength will reach around 9.7 billion thus creating a higher consumption rate of consumer packaged goods. In addition to this, the rise in consumer awareness rate has allowed companies to sell more products. Social media and access to the Internet are key consumer awareness rate drivers. In the last few years, social media marketing along with traditional advertising and selling techniques have been beneficial in reaching customers even at remote locations. In 2022, cosmetics giant L’Oreal spent nearly 11.9 billion euros on advertisement and marketing campaigns.

Online sales channel to shape industry growth trends during the projection period

The online sales channel is expected to fuel industry growth during the forecast period. Popular e-commerce websites with an extensive supply chain network have been significant in reshaping the CPG industry in recent times. The global consumer packaged goods (CPG) market players have leveraged the several advantages that online sales offer. The emergence of online platforms with CPG-centric delivery models could aid higher revenue generation in the coming years.

Consumer Packaged Goods (CPG) Market: Restraints

Extremely high competitiveness in the industry to restrict market growth

The global consumer packaged goods (CPG) industry is projected to be restricted due to the extreme competitiveness in the industry. Currently, several brands exist for every particular product that is available in the market. For instance, packaged potato chips are sold by big food giants alongside regional producers of the same product. Such intensive competition levels lead to difficulties in managing brand differentiation among consumers while also restricting innovation. Furthermore, more people are seeking ways to reduce consumerism which could directly affect producers of CPG goods, especially companies selling products in miniaturized quantities.

Consumer Packaged Goods (CPG) Market: Opportunities

Increasing innovation in terms of packaging to create higher growth opportunities

The global consumer packaged goods (CPG) market will witness growth opportunities owing to the rising rate of innovation in terms of packaging solutions. Producers of CPG are increasingly investing in improved packaging in terms of materials used and the outcome. They are investing in sustainable solutions by using recycled packaging or with the aid of biodegradable packs. This helps companies create better brand value since customers are aware that the consumer brand is concerned about the business's impact on the environment.

In April 2023, Marks & Spencer, a multinational retailer with a presence in food and clothing markets, announced that its food products including rice, pulses, and grains will be packaged in paper-based solutions and will be distributed in paper boxes. In January 2023, Cascades, a packaging and tissue products company, launched a new range of closed baskets made of recyclable and recycled corrugated cardboard. Such innovations that not only improve product shelf life but also act as a marketing point will assist in delivering better results.

Emerging nations hold high potential growth due to rising per capita income

The global industry for consumer packaged goods (CPG) may grow rapidly in emerging nations since countries such as India, China, and African territories are registering a growth in per capita income. As of 2022, India’s gross domestic product (GDP) reached over USD 2.9 trillion as per official data. Furthermore, the regional population is registering a shift in lifestyle and purchasing power leading to higher demand for consumer packaged goods.

Consumer Packaged Goods (CPG) Market: Challenges

Pollution caused by CPG and incorrect labeling concerns may challenge market demand

The global consumer packaged goods (CPG) market will be challenged by the high pollution caused by packaging items used in the industry. The massive quantities of CGP products used worldwide result in the accumulation of waste along with improper disposal systems which adds to a higher pollution rate. Furthermore, growing cases related to improper labeling of consumer packaged goods and managing such instances may lead to added challenges.

Consumer Packaged Goods (CPG) Market: Segmentation

The global consumer packaged goods (CPG) market is segmented based on service, type, and region.

Based on service, the global market segments are offline and online. In 2022, the highest growth rate was observed in the offline segment. The growth trend is a result of deeper penetration of retail stores including smaller grocery units as well as larger supermarkets or hypermarkets. These facilities offer an extensive range of options along with other benefits such as discount provisions. The rising development rate of new CGP retail chains offering affordable buying experiences will generate higher revenue. The online segment is currently more popular in urban areas and may need more time to register similar popularity in remote locations. In 2023, DMart, India’s leading supermarket retail brand made a total revenue of INR 417.9 billion.

Based on type, the global market is divided into household suppliers, personal care & cosmetics, food & beverage, and others. In 2022, the segment with the highest growth rate was food & beverage. It caters to the most basic and important needs of every human. Food products are the most prominent products that are bought often. Furthermore, the extremely short shelf life and the growing population rate add to overall segmental dominance. In 2023, the global personal care & cosmetics industry will be valued at over USD 500 billion and may emerge as the second fastest-growing segment.

Consumer Packaged Goods (CPG) Market: Report Scope

Consumer Packaged Goods (CPG) Market: Regional Analysis

Asia-Pacific will be the leading region in terms of revenue

The global consumer packaged goods (CPG) market will be led by Asia-Pacific during the projection period. Asia-Pacific is home to several emerging nations that are witnessing rapid economic growth. Furthermore, countries such as China and India are the world's most densely populated countries leading to higher consumption of regular consumer packaged goods. India’s population as of 2023 is 1.4 billion. The regional market growth is strengthened by the increasing disposable income along with changing consumption patterns and lifestyles.

Asian countries have a widespread network of smaller stores selling consumer packaged goods while there is a steadily growing consumer market for supermarkets and branded retail stores. The growing acceptance of online buying and shopping experiences has further fueled regional insights. In October 2023, China’s leading e-commerce platform JD.com announced the launch of new 4-hour delivery services thus prompting other companies to launch more innovative customer-centric approaches. Europe is an influential market. Several key CPG manufacturers are based in Europe and are working on expansion strategies.

Consumer Packaged Goods (CPG) Market: Competitive Analysis

The global consumer packaged goods (CPG) market is led by players like:

• Johnson & Johnson
• Procter & Gamble (P&G)
• Nestlé
• Unilever
• Kraft Heinz
• Kellogg Company
• The Coca-Cola Company
• Colgate-Palmolive
• PepsiCo
• Clorox
• Mars
• Incorporated
• The Hershey Company
• Mondelez International
• Conagra Brands
• General Mills.

The global consumer packaged goods (CPG) market is segmented as follows:

By Service

• Offline
• Online

By Type

• Household Supplies
• Personal Care & Cosmetics
• Food & Beverage
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa