The Big CPG Industry Trends for 2021

When uncertainty hits, we need brands we can rely on. The last year has required many CPG brands to step up to the plate. 

After such a chaotic year in which cleaning products and household necessities were flying off the shelves, what will consumers be looking for more of post-2020? And what trends should we be looking out for?

Trend #1: All eyes on sanitization

If anyone or anything could call 2020 a good year it would be cleaning products and the people who sell them. Everyone was in a rush to get their hands on any form of sanitization product possible. 

In our new report on the best brands for CX, we looked at a year’s worth of data for 15 different industries. In positive conversations about brands in the non-perishable CPG space, we found people talking happily about feeling clean, as well as comparing different cleaning products. Brand mentions in this sub-sector of CPG saw increased mentions in 2020 as people reacted to the pandemic and the need for cleanliness. 

In fact, according to Nielsen Research, for the eight-week span through April 25 , year-over-year sales of all household care items rose 45.6% across US retail channels. That included gains of:

• 245.2% for aerosol disinfectants 
• 229.2% for hand sanitizer 
• 145.9% for multipurpose cleaner wet wipes

As we move into 2021, cleaning products will continue to be in high-demand. Consumers are much more concerned about the utility of these products than ever before. Brands with the right balance of efficiency and affordability will be favored, especially if these products boast natural ingredients.

Trend #2: Brands have to work even harder to win space on the digital shelf

Any remaining barriers to online shopping have crumbled down since the pandemic began, and big-time retailers that had invested heavily in e-commerce before the pandemic thrived in 2020.

Hesitant or unable to go to stores in person, people relied heavily on ecommerce, even in normally slow-growth areas of CPG. This allowed for new audiences to be reached online, especially older demographics, and seniors have done an impressive job of adapting to online transactions. 

In fact, a recent survey conducted by PYMNTS found that 21.7% of seniors and boomers plan to permanently shift to online shopping compared to just 11.8% who said they only changed behaviors temporarily because of the pandemic.

Heading into 2021, the online marketplace will be more saturated than ever before. Brands will have to work hard to earn their spot on the digital shelf. Businesses of all sizes that have yet to fully adapt to e-commerce risk falling behind.

Trend #3: Delivery options are front of mind

Speaking of delivery, in 2021 we will be seeing a continued Covid-19-driven rise in delivery options, including at-home, buy-online-pickup-in-store (BOPIS), and curbside delivery.

CPG companies need to transform digitally to take advantage of the “new normal,” which will continue in 2021 and potentially stick around for years to come.

A Deloitte study completed early on in the pandemic found that more than 50% of consumers reported spending more on convenience to get what they needed. Convenience was often defined by contactless shopping, on-demand fulfillment, delivery app usage, and BOPIS adoption. 

This expectation of convenience isn’t likely to disappear anytime soon. If anything, in 2021 we will see more innovative options emerge.