In food and beverage, challenges include:
- Changes in marketplace and societal dynamics
- More of a consumer emphasis on healthy, ethical food
- Rising environmental, social, and corporate governance (ESG) expectations, and new regulations
- Changes in trade and supply sources due to climate change and politics
For home and personal care, challenges include:
- The medicalization of beauty and wellness and expanded self-care
- Rising direct-to-consumer (D2C) sales
- Dependence on China for supply
For the durables segment, challenges include:
- Increased production and shipping costs and delays
- Consumers delaying purchases due to macroeconomic worries
- Increased importance is placed on the circular economy and product life cycles
- Rising trade barriers and costs are stretching consumers' wallets and forcing Consumer Products companies to reassess their sourcing and supply chains strategies.
Consumer Products companies are facing challenging conditions outside of their control.
- Climate change: Governments are increasing regulations and taxes related to climate change, adding stress to Consumer Products companies.
- Record inflation: Most companies expect a global inflation rate of around 6.5%.
- Economic slowdown: Consumers, particularly young consumers, are showing changes in brand loyalty and adoption rates amid the economic slowdown.
- Changing consumers: Consumers are changing their buying behavior due to inflation and other macro trends.
- Private label competition: Consumers are more willing to switch to private labels to adjust to rising inflation.
- Supply chain issues: Consumer Products companies are facing supply chain management issues.
In this video, you learn how Consumer Products companies are adapting to these challenges.
