Common Challenges CPG Brands Face Today


Due to the complex market landscape and strains following COVID-19, CPG companies are currently facing multiple challenges. To deal with these challenges, marketers must first understand them.

If a CPG company is struggling with growth, they’re likely implementing the wrong strategy. But, when several large CPG brands are consistently struggling, trends in the wider market are likely to fluctuate.

This guide will discuss some of the common challenges these companies face and how they’re dealing with them.  


Several Ecommerce Opportunities

As consumer shopping trends change, online shopping represents 14% of retail sales across the United States. Online sales for CPG companies increased by over 35% in 2018 because of the rising popularity of digital marketplaces that offer expansive varieties of CPG products.

Though this shift demonstrates greater brand exposure, it also reduces CPG companies’ opportunities to build loyalty and connections directly with consumers. That’s because of insufficient room for individual marketing.


Consumer Boredom    

Though consumers today have access to various products, their boredom threshold is very low. They want to experience and try new things, like in a grocery store where they can taste, smell, and touch products.

However, the traditional approach of CPG companies doesn’t relate to this as product reformulations are rare and innovation cycles are long. The issue for big CPG brands is that newness and innovation are what smaller companies do well. That’s why several consumers across various categories have shifted from bigger brands to smaller ones.


Increase in Online Shopping

Consumers have largely limited their trips to brick-and-mortar stores, especially because of online shopping. With access to almost every brand online, digital consumers have more agency than visiting stores. Consumers can easily assess competitor offerings, browse for optimal pricing, and go through reviews online.  


Poor Brand Loyalty

Though the internet has improved the consumers’ shopping experience, it has also fostered disloyalty. The global market exhibits limitless CPG options, enabling consumers to buy products of the greatest value at the lowest price. Consumers are now less concerned with product manufacturers as long as they can purchase them.

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