Clarkston’s team of consultants have highlighted the top consumer products trends that businesses should consider. See an excerpt of the trends report below, and read all five trends for 2025 by downloading the full report here.

2025 Consumer Products Trends

Through a continuing period of cost pressures concerning both shoppers and retailers, the consumer products (CP) industry has always been able to adapt to shifting market demands. Now, as we enter 2025, leading CP brands continue prioritizing strategic adaptability to protect core revenue growth in an increasingly complex landscape.  

Foreign exchange headwinds and shifting fiscal monetary trade policies—including new tariffs on Canadian and Mexican imports— are putting strain on CP companies that depend on international trade partners for essential goods. Now, a critical decision for these companies moving forward is whether to absorb the financial hit, or to adjust costs and pricing strategies, knowing either could impact margins or consumer demand. At the same time, consumer, retail, and geopolitical dynamics are driving CP companies to rethink how they operate. Inflation and interest rates continue to increase, while input costs grow to be more unpredictable, adding further financial pressure. As companies continue to grapple with a range of volatile macro-economic impacts, a “regulation-ready portfolio” and agile strategy is more critical than ever. 

Staying ahead in today’s highly diversified market requires CPs to leverage their core competencies and resources, aiming to further drive a competitive edge and better align cross-functional teams with consumer-centric value-creation strategies. While cost and operational efficiency is key, there’s renewed focus on driving top-line growth and maximizing the value of strategic digital investments. And, with a number of digitally native brands gaining ground, consumers are overwhelmed by the intense competition, so it’s even higher of a priority to seek differentiation through optimized marketing strategies. Also, rising costs—fueled by uncertain economic conditions and new tariff policies— are demanding more precision in pricing and sourcing. However, with a clean digital core and diversified supplier network, brands will be well-prepared to handle any of these emerging concerns. In this trends paper, we will explore five strategies that will define success for CP companies in the year ahead. 

Trend #1: Market Fragmentation Means Brands Need a New Approach to Sales & Marketing

So much growth in the CP industry continues to be realized by small- to mid-sized businesses that were born digital and capitalized on diminished barriers to entry. Now consumers are faced with an abundance of choices—and brand switching or lack of brand loyalty has never been higher. This shift in consumer buying habits as a response to the fragmented market, coupled with ongoing inflationary pressures, has prompted leading consumer products brands to adopt new tools and processes for sales and marketing. Amidst mounting pressure from consumers and retailers alike, these capabilities must be optimized now before companies run out of room to make more strategic, pointed price increases.  

Achieving price excellence through maximizing revenue growth management (RGM) efforts has become a key source of competitive advantage today. While this may not be a new concept, the vast amount of data companies can now access makes RGM the most critical focus in all of sales and marketing today. Driving stronger returns on commercial investments requires companies to leverage their promotional efforts not as a means to discount, but to instead drive trial and highlight innovation. Canned water brand Liquid Death, for example, utilizes their wealth of consumer data to improve online promotional campaigns. They strategically release limited-edition products to tap into current trends, generate online buzz, and drive brand awareness. Their targeted marketing strategies and strategic pricing model then work in tandem to convert customer interest into sales. With a robust data foundation, CP companies can better leverage both internal and external insights to ensure promotional communication reaches consumers at the right time and place. 

Beyond digital strategies, winning at the store and the shelf is just as crucial. CP companies can break through distractions and noise by partnering with retailers to create stand-out, in-store executions that will grow brand awareness and drive profit for both the retailer and the CP firm. Candy company SmartSweets exemplifies this with their well-known, eye-catching displays that differentiate their candy from competitors on retailer shelves. Further, after an era of unprecedented price increases across most CP categories, many companies are investing in tools to maximize price pack architectures and bring product packs back in line with pricing slopes. Global food and beverage company Danone restructured their pricing strategy with coconut water brand, Harmless Harvest, offering bulk packs of smaller bottles to compete on affordability while still maintaining a premium “on-the-go” position.  

To sustain a competitive edge in such a highly fragmented market, CP brands must focus on driving growth through strategic adjustments to sales and marketing. Data-driven insights are the key to identifying opportunities for maximum revenue growth – whether through dynamic pricing or targeted promotional strategies. Moving into 2025, brands that follow a more strategic approach to sales and marketing will be better positioned to respond to future market shifts. 

Trend #2: Shifting from Value Creation via Cost to Value Creation via Growth

After years of prioritizing bottom-line efficiency and EBITDA improvement, there’s now a renewed focus from CP brands on driving top-line growth to return to or even exceed historic topline growth rates of 3-5%. This has stemmed from evolving brand to consumer interactions influenced by the pursuit of value, diminished brand loyalty, and the growing preference for experiences over products. While there are natural limits to the number of product variations offered in a company’s portfolio, the opportunity to connect with consumers beyond the purchasing journey through physical and digital experiences is limitless. To truly retain this competitive customer market that is constantly brand switching, CP brands must focus on organizational growth and redefining value creation through innovation and adaptation rather than just cost efficiency.  

Considering these broader macroeconomic impacts, it is critical to understand how consumer habits and preferences are shifting. Uncertain economic conditions like rising inflation and stagnant wage growth have created several headwinds. Value-seeking consumers have long played a role in CP strategies, but almost 70% of consumers today will switch brands for a lower price, so there’s a heightened emphasis on exceeding the needs of this segment through product innovation.  

At the same time, convenience of delivery continues to sway purchasing decisions. With retail proliferation enabling near-instant gratification, brands that can best deliver on-demand solutions are well positioned to succeed. Affordability and convenience remain top priorities, but many consumers are also seeking experiences that go beyond the product itself—and they’re willing to pay for it. This is evident in the rising demand for unique flavors, specialized offerings, and immersive brand interactions that drive deeper connections with your consumers. Good Culture Cottage Cheese, for example, released protein-packed, on-the-go cups to target the active, health-conscious consumer market that is more focused on portion control. Since over half of consumers today will seek out brands that adapt to fit their needs, constant innovation and realignment is necessary to satisfy the unique demands of value-seeking consumers. 

Additionally, tech-savvy CP brands are exceeding competitor value through hyper-personalized consumer experiences. We’re seeing this through many brands’ approach to marketing, where they’re leveraging advanced AI capabilities for accelerated personalized advertising optimized for different consumer targets. After all, over 90% of shoppers prefer brands that personalize their offers and messaging. Companies with strong analytical capabilities and a clean digital core can maximize the true value of AI to make faster, more informed decisions on consumer strategies. Mars Petcare, leading provider of pet care products and owner of Nom Nom pet foods, integrated AI strategies to recommend meal plans based on individualized pet needs and targeted promotional messaging at different consumer segments. This level of personalization, enabled by digital initiatives and investments, allows companies to better meet customer expectations and create deeper connections within the market. 

Shifting focus from cost efficiency to strategic expansion, the emphasis in 2025 will be for CP brands to deliver value through innovative offerings. Expectations for low price combined with heightened brand switching are pushing brands to find new, creative avenues for engagement beyond the product alone. Moving into 2025 and beyond, leveraging real-time insights with AI capabilities will support leading brands to foster deeper connections throughout the purchase journey and further drive top-line growth. Continue reading by downloading the full report below.

Download the Full 2025 Consumer Products Industry Trends Report Here

Read last year’s Consumer Products Trends Report here.

Contributions from Bella Gordon