Despite a growing economy, consumer packaged goods (CPG) brands are reeling from big shifts in consumer behavior. According to one source, 90 of the top 100 CPG brands lost market share in the past year.
The reasons are complex. From record low U.S. birth rates to an insatiable appetite for fresh foods, demographic and psychographic trends are working against the industry. More millennials are living at home with their parents, and their love of meal kits and smartphone-powered food delivery has led to an expanded competitive set.
Yet, stores that primarily sell CPG products are thriving. The grocery sector saw a net increase of 1,785 stores in 2017, led by Dollar General, Dollar Tree and Aldi. The German supermarket chain Lidl debuted in the U.S., building more than 50 stores. The retail chains with the greatest number of store closings don’t primarily sell foodone could make the case that only two sell CPG products at all. So, what gives?
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