CPG Transformation 2023

3 Themes Shaping CPG Companies in 2023

In 2023, CPG companies are focusing on three key priorities. First, they are building brands by innovating products, enhancing value, and introducing premium lines to attract a growing middle class and reduce reliance on price competition.

Second, they are managing portfolios through either acquisitions or consolidation, prioritizing high-growth categories and premiumization to justify higher prices and protect margins.

Finally, they are optimizing operations and processes by adopting more integrated models, enabling localization, strengthening agency partnerships, developing in-house capabilities, and restructuring teams to better serve long-term brand ambitions.

What CPG brands need to keep an eye on

Selling brands, consolidating portfolios, reinvesting in better-aligned products, and even full restructures are no longer driven by what a product is. They are driven by how it moves through supply chains, media channels, and retail networks. That influence extends down to the personalized messages consumers receive on their phones.

What matters most is not the product itself but the way it is sold and perceived at key retailer and consumer touchpoints. This shift is redefining how business units are organized and is reshaping core aspects of marketing and commerce.