-Unilever is cutting loose its $8 billion ice cream division, choosing to focus on higher-margin beauty and wellness.
-Nestlé is doubling down on health-science-based nutrition as food brands struggle with pricing power.
- CPG giants are seeing stronger growth in self-care, supplements, and skincare than in traditional food categories.
The global personal care market is expected to hit $758 billion by 2030, while processed food growth slows.
Why This Shift?
1. Margins in food are shrinking. Consumers are trading down, private labels are winning, and inflation-wary shoppers aren’t absorbing cost hikes like they used to.
2. Health & wellness are driving premiumization. Customers will pay more for skincare, supplements, and functional beverages—but not for basic pantry staples.
3. Brand loyalty in food is eroding. Over 50% of consumers are comfortable switching food brands based on price, but loyalty remains strong in beauty, healthcare, and wellness.
Winning Brands Are Already Moving:
-L'Oréal’s skincare division posted 9.1% revenue growth last year, while traditional CPG food brands saw single-digit declines.
-The Coca-Cola Company is investing in functional drinks and non-carbonated wellness categories to stay relevant.
-PepsiCo’s biggest success? Gatorade’s expansion into hydration and performance-based drinks, not soda.
CPG Leaders:
✅ Stop thinking of food as the core driver of growth. Instead, align with evolving consumer behavior.
✅ Invest in personalization, self-care, and functional health. That’s where demand (and pricing power) is strongest.
✅ Rethink your brand mix. Is your portfolio weighted toward categories that will still be relevant in 5-10 years?
So, here’s my question to FMCG execs: Are you future-proofing your brand strategy or just managing decline?
https://tinyurl.com/5d8s5ytn
Something's happening in CPG.The legacy giants are dramatically under-pacing the market, while a new generation of startups is sprinting ahead.
This isn't just a quarterly anomaly. It's a fundamental shakeup.
The old playbook—brute-force distribution and massive ad budgets—is broken. The power has shifted from the brand to the consumer.
In our latest newsletter, we dive into the why:
1. Consumers are now Curators: They demand transparency and trust.
2. Agility is the new Scale: Startups can innovate in weeks, not years.
3. Connection is the new Currency: Community is beating traditional advertising.
This CPG shakeup is a lesson for every industry, from food & bev to healthcare. The old guard is learning that their greatest strength (massive size) has become their greatest liability.
https://tinyurl.com/yc2h7rtn