While the consumer packaged goods (CPG) sector overall is facing slower growth, both nutritious and indulgent foods continue to grow, according to Boston Consulting Group (BCG) in a recent thought piece. Growth was seen in plant-based foods, “functional beverages” (marketed as part of healthy lifestyle), and personal care products with natural ingredients. Larger companies snapped up small companies, including for foods with natural ingredients of interest to niche markets. BCG reviews performance data and concludes with the importance of following consumers “around the clock” and keeping a startup mentality.
While consumers continue to seek indulgent foods and snacks, demand continues to grow for products that support healthy lifestyles. Given larger trends with obesity and non-communicable diseases, industries like CPG might find themselves pivoting into health and having an important role to play in improving health outcomes.