The European Consumer packaged goods (CPG) market – defined as food, beverage and household essentials – is undergoing a significant transformation, according to the brand new RetailX European Consumer Packaged Goods market 2024 report.
While affordability remains a concern, health, sustainability and convenience are increasingly shaping purchase decisions. The online channel may be growing but bricks-and-mortar stores remain dominant.
Understanding these trends is essential for CPG brands to develop strategies that cater to the evolving needs and preferences of European consumers. Looking ahead, several trends will continue to impact the European CPG market:
• The rise of private label – As Europeans prioritise value, private label brands offered by retailers are expected to gain further market share. CPG companies will need to differentiate themselves through innovation and strong brand positioning.
• Data-driven marketing – Understanding consumer behaviour through data analytics will become crucial to personalise marketing strategies and target customer segments.
• Omnichannel strategies – CPG companies must offer a seamless shopping experience across online and offline channels to cater to evolving consumer preferences.
• Sustainability – Pressure will continue to mount on CPG companies to adopt sustainable practices throughout their supply chains, from sourcing materials to packaging and waste reduction. Consumers are increasingly willing to pay a premium for eco-friendly options.
• Technological innovation – Technology will play a vital role in the future of CPGs. Innovations such as smart packaging, connected appliances, and personalised product recommendations will enhance the consumer experience and drive sales.
• Subscription services – Subscription boxes delivering curated CPG products cater to consumers’ desire for convenience and discovery. This trend is expected to gain traction, particularly in niche categories like healthy snacks or beauty products.
• Western versus Eastern Europe – Western European consumers tend to prioritise sustainability and health, while Eastern European consumers are more price-sensitive.
• National and regional preferences – Local tastes and traditions play a significant role. For example, the demand for specific types of bread or dairy products can vary significantly between countries.
In this RetailX European Consumer Packaged Goods market 2024 report, Paul Skeldon looks at the underlying market for CPG goods in Europe, how each part of the often complex supply chain has to change to meet these new demands and what that means for a raft of key players in the sector.
Drawing on market data, consumer surveys and case studies, the report offers a snapshot of where the European CPG market is today, where it has come from and, crucially, where it is heading.
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