Global Consumer Packaged Goods (CPG) Market Size By Food and Beverage (Beverages, Packaged Foods), By Personal Care and Household Products (Personal Care Products, Household Products), By Health and Wellness Products (Nutritional Supplements, Functional Foods), By Geographic Scope and Forecast

Consumer Packaged Goods (CPG) Market Size and Forecast

Consumer Packaged Goods (CPG) Market size was valued at USD 21.73 Million in 2024 and is projected to reach USD 26.75 Million by 2031, growing at a CAGR of 2.90% from 2024 to 2031.

• Consumer Packaged Goods (CPG) are products that consumers use daily and must replenish regularly since they deplete quickly. These things include food, beverages, cleaning supplies, toiletries, and other household essentials. Examples include consumables like cereal, milk, and canned vegetables; personal care products like shampoo and toothpaste; and domestic supplies like detergent and paper towels.
• Consumer Packaged Goods (CPG) are items that people frequently purchase and use in their daily lives such as food, beverages, toiletries, and cleaning supplies. CPG has numerous applications and is an essential component of daily life. CPG products in the food and beverage industry include snacks, cereals, canned goods, and bottled beverages.
• Technological improvements and changing consumer preferences will most likely affect the future of consumer packaged goods (CPG). One notable trend is the incorporation of technology into CPG items and packaging. Smart packaging is becoming more popular as the Internet of Things (IoT) continues to grow.

Global Consumer Packaged Goods (CPG) Market Dynamics

The key market dynamics that are shaping the global consumer packaged goods (CPG) market include

Key Market Drivers

• Rising Consumer Demand for Convenience Convenience is a major driver in the CPG business. Consumers are increasingly looking for things that fit into their hectic lifestyles which is driving up demand for ready-to-eat and easy-to-use items. Products such as single-serve meals, snack packs, and pre-packaged beverages meet the demand for quick and easy solutions. This tendency is especially prevalent among working professionals and busy families who value convenience without compromising quality.
• Innovation and Product Differentiation Innovation is critical to growing the CPG business. Companies are continuously striving to differentiate their products with novel flavors, ingredients, packaging, and health benefits. For example, increased health consciousness has resulted in the development of organic, gluten-free, and low-calorie alternatives.
• Growing E-commerce and Omnichannel Retailing The growth of e-commerce and omnichannel retailing is a major driver of the CPG business. The rise of online shopping platforms has changed the way people buy packaged goods providing greater convenience and access to a broader selection of products. E-commerce enables customers to compare prices, read reviews, and purchase products that may not be available in their local businesses.

Key Challenges

• Changing Consumer Preferences One of the most difficult issues for CPG companies is adjusting to quickly changing consumer preferences. Consumers are growing more health-conscious and environmentally informed seeking items that are organic, sustainable, and ethically manufactured. This trend necessitates that CPG companies consistently develop and upgrade their product offerings to satisfy changing demands.
• Supply Chain DisruptionsThe worldwide supply chain for CPG products is complicated and prone to disruption. Natural disasters, geopolitical tensions, and pandemics can all result in major delays and expenses. For example, disruptions in raw material supply or transportation bottlenecks might cause complete product shortages on shop shelves.
• Regulatory Compliance CPG companies must navigate a complicated landscape of regulations and standards that differ by area and product category. Compliance with food safety, labeling, and environmental rules is critical but it can be difficult due to rapid revisions and differences in requirements between markets. For example, legislation governing ingredient labeling, nutritional information, and packaging materials can differ greatly between countries.

Key Trends

• Sustainability and Eco-Friendly Products As consumers want more sustainable and environmentally friendly products, CPG firms are adopting greener methods. This trend is being pushed by increased environmental consciousness and demand for items with a low environmental impact. Companies are responding by using sustainable materials in their packaging, decreasing waste, and sourcing ingredients responsibly.
• Personalization and Customization The need for personalized and bespoke products is changing the CPG landscape. Consumers want products that are adapted to their specific preferences and needs whether they be personalized cosmetic products, customized food and beverages, or unique household goods. Advances in technology such as data analytics and artificial intelligence allow businesses to provide more personalized experiences.
• E-Commerce and Direct-to-Customer Channels E-commerce and direct-to-consumer (DTC) channels are expanding rapidly in the CPG market. The shift to online buying hastened by the COVID-19 epidemic has resulted in an increase in digital sales and a reconsideration of traditional retail methods. CPG firms are investing in their online presence and seeking new ways to engage consumers directly via their websites or online marketplaces.

Global Consumer Packaged Goods (CPG) Market Regional Analysis

Here is a more detailed regional analysis of the global consumer packaged goods (CPG) market

Europe

• The European customer packaged goods market is primarily driven by shifting customer preferences, technology improvements, and an increased emphasis on sustainability. One of the primary drivers of market expansion is the rising demand for convenience products. According to Eurostat, the proportion of single-person households in the EU has risen from 30.3% in 2010 to 34.1% in 2021 resulting in increased consumption of ready-to-eat meals and prepackaged items. According to FoodDrinkEurope, the European food and drink business will generate €1.2 trillion in revenue in 2021. Furthermore, the rise of e-commerce has had a tremendous impact on the consumer packaged goods market.
• Another significant driver in the European CPG market is the increasing emphasis on health and wellness products. The COVID-19 epidemic has intensified this tendency, with customers selecting products that promote their overall health. According to a European Commission estimate, the EU organic market increased by 15.1% between 2015 and 2019 totaling €41.4 billion in retail sales.
• Furthermore, the European Food Safety Authority (EFSA) reported a 10% increase in health claims submissions for food products between 2018 and 2021 showing growing consumer interest in functional foods and nutraceuticals. Sustainability and environmentally friendly packaging have also become important elements in consumer decisions.

North America

• The consumer packaged goods industry in North America is expanding rapidly due to various causes. One of the key causes is the growing desire for convenient and ready-to-eat foods. According to the USDA, the average American household spent $4,643 on food at home in 2020, up 7.8% from 2019. The trend to at-home consumption has increased sales of packaged meals and beverages. Another important factor is the expanding health and wellness movement. According to the Centers for Disease Control and Prevention, 49.1% of adults in the United States attempted to reduce weight in the previous year increasing demand for better CPG options.
• Plant-based products are the fastest-growing component of the North American consumer packaged goods market. This category has grown rapidly as a result of rising environmental concerns, health consciousness, and ethical considerations. According to the Plant-Based Foods Association, retail sales of plant-based foods in the United States increased by 27% in 2020 to $7 billion. This growth rate is approximately double that of the whole retail food market in the United States. In 2020, the plant-based meat segment alone expanded by 45%, with sales of $1.4 billion.
• Improved product quality, more availability, and shifting consumer preferences have all contributed to the category’s rapid growth. Major merchants and food producers have made significant investments in plant-based alternatives accelerating industry expansion.

Global Consumer Packaged Goods (CPG) MarketSegmentation Analysis

The Global Consumer Packaged Goods (CPG) Market is segmented based on Food and Beverage, Personal Care and Household Products, Health and Wellness Products, and Geography.

Consumer Packaged Goods (CPG) Market, By Food and Beverage

• Beverages
• Packaged Foods

Based on the Food and Beverage, the Global Consumer Packaged Goods (CPG) Market is bifurcated into Beverages and Packaged Foods. Packaged Foods dominate the Food and Beverage segment of the global consumer packaged goods (CPG) market. This dominance is due to several factors including the rising demand for convenient, ready-to-eat meals and snacks driven by increasingly busy lifestyles and the growing number of working individuals. Additionally, advancements in food processing and packaging technologies have enhanced the shelf life, safety, and variety of packaged foods making them more appealing to consumers.

Consumer Packaged Goods (CPG) Market, By Personal Care and Household Products

• Personal Care Products
• Household Products

Based on the Personal Care and Household Products, the Global Consumer Packaged Goods (CPG) Market is bifurcated into Personal Care Products and Household Products. Personal care products dominate the consumer packaged goods (CPG) market driven by the growing consumer focus on health, wellness, and self-care. This segment includes skincare, haircare, cosmetics, and hygiene products which have seen increase in demand due to heightened awareness of personal health and grooming. The rise of beauty and wellness trends along with innovative product launches has further fueled this dominance. Consumers are more willing to invest in premium personal care products that offer specific benefits such as anti-aging, organic, or eco-friendly formulations.

Consumer Packaged Goods (CPG) Market, By Health and Wellness Products

• Nutritional Supplements
• Functional Foods

Based on the Health and Wellness Products, the Global Consumer Packaged Goods (CPG) Market is bifurcated into Nutritional Supplements and Functional Foods. Functional foods are dominant in the Health and Wellness segment of the Consumer Packaged Goods (CPG) market. This dominance is driven by the increasing consumer demand for food products that provide health benefits beyond basic nutrition. Functional foods such as those fortified with vitamins, minerals, probiotics, and other bioactive compounds are perceived as convenient ways to enhance health and prevent diseases. The growing awareness of the link between diet and health coupled with busy lifestyles that favor convenient yet nutritious options boosts the popularity of functional foods.

Consumer Packaged Goods (CPG) Market, By Geography

• North America
• Europe
• Asia Pacific
• Rest of the World

Based on Geography, the Global Consumer Packaged Goods (CPG) Market is classified into North America, Europe, Asia Pacific, and the Rest of the World. Europe is dominant in the consumer packaged goods (CPG) market due to a mature market with high consumer purchasing power and strong demand for diverse, high-quality products. European consumers place significant emphasis on sustainability, health, and wellness driving the growth of eco-friendly and health-conscious CPG products. Additionally, Europe has stringent regulatory standards that ensure product quality and safety fostering consumer trust and loyalty.

Key Players

The “Global Consumer Packaged Goods (CPG) Market” study report will provide valuable insight with an emphasis on the global market.  The major players in the market are Procter & Gamble (P&G), Nestlé, PepsiCo, The Coca-Cola Company, Unilever, Johnson & Johnson, Kellogg Company, Mars, Incorporated, Kraft Heinz Company, and Mondelez International.

Our market analysis also entails a section solely dedicated to such major players wherein our analysts provide an insight into the financial statements of all the major players, along with product benchmarking and SWOT analysis. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.

Global Consumer Packaged Goods (CPG) Market Key Developments

• In July 2022, Procter & Gamble (P&G), one of the world’s largest consumer goods companies, debuted new versions for virtual shopping in Southeast Asia.
• In October 2022, Tata Consumer Products and Marico jointly announced the launch of new Saffola products.

Report Scope

Research Methodology of Market Research