Data storytelling for CPG Brands

Data for CPG brands

Q: What is the current state of the CPG market?

A: The consumer packaged goods industry is the largest industry in the world, estimated to generate over $2 trillion annually in the U.S. alone. It encompasses food, beverages, household supplies, cosmetics, over the counter medicine, and more. There are thousands of CPG manufacturers selling tens of thousands of brands, and hundreds of thousands of items into about 300 major retailer chains.

Q: How has COVID-19 impacted the CPG industry?

A: In Q2 of 2020, supply chains were stressed. The industry has been able to work through many challenges and is seeing a resurgence of optimism due to heightened demand for products that are consumed at home. Changing shopping habits have led to:

  • A spike in the sales of canned goods of 318%, followed by a sustained increase of 120% year over year
  • A decrease in single serving packages by 40%, but an increase in family-sized packages by 60%
  • Retailers devoting more shelf space to “core brands” and less space to specialty items, like gluten free foods.

Q: What kind of stories can data tell?

A: Brands use a combination of brick & mortar retail, e-commerce & demographic data to determine what their performance is compared with that of their competitors in each micro-region of the country. CPG brands also rely on data to determine:

  • Shifts in consumer demand and tastes
  • The success of in-store promotions like BOGO (buy one, get one) sales and coupons
  • The effectiveness of digital advertising like social media ads and sponsored content

Q: Why should CPG brands care about this data?

A: A brand’s goal is to convince a retail buyer that they can generate more revenue for the retailer than their next competitor. Brands have to convince retailers that they should be given additional shelf space because it will benefit both parties. When brands have access to complete data, this goal is much easier to achieve. Proposals need to be backed up by data.

Q: How has the CPG industry been impacted by digital transformation?

A: The CPG industry has lagged behind other industries in adopting technology that can transform its operations. The manufacturing industry as a whole tends to be more reluctant when it comes to introducing new technologies into its processes.

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