We expect the importance of digital commerce to be amplified by the rapid pace of technological change. The cost and cost volatility of key packaged goods inputs will likely continue to increase. © 2020. 0. The likely consequence: Customization of both the product and the end-to-end shopping experience will be critical to capturing value. For more information about Deloitte’s Consumer Products practice, visit http://www.deloitte.com/us/consumerproducts. Other consumers are placing greater emphasis on a product’s impact on health, the absence of all things artificial in a product, or a product’s cradle-to-grave environmental footprint. Drawing on our research, expert interviews, and extensive experience working with consumer-facing companies worldwide, we have identified and analyzed the main trends that have begun—and will most likely continue—to affect the consumer industry. First, driving greater brand loyalty is very important to each of the three groups of executives—revealing the ongoing tension between both consumer product brands and retailers. Change was gradual and incremental. You need additional differentiation: good for you, good for the environment, and supporting a shared social cause.”—Packaged goods sales executive “Health and wellness can clearly differentiate our brands and drive brand loyalty.”—Packaged goods marketing executive The second uncertainty envisions a decline in emotional ties to national brands, growing discontent with the perceived values of large companies, and a shift in consumer focus toward personal health, environmental sustainability, and social impact. While it’s not possible to predict the timing or form a downturn might take, one will likely eventually occur. For some companies, this may entail reshaping their brand portfolio through innovation, acquisition of new brands, and/or divestiture of traditionally strong brands. The report explore five undercurrents that may impact the consumer product industry in 2020. 1 While the bottom quartile of consumer product companies has suffered the most (1.9 percent ROA to a negative ROA of -5.6 percent), top performers are also slightly less profitable than they were … For example, SlantShack Jerky makes handcrafted artisanal beef jerky sourced from sustainably raised, grass-fed cattle.21 Rising consumer interest in protein-rich food has driven increased sales of products such as jerky and other meat snacks in recent years. World Economic Forum, “Global risks 2014, ninth edition,” 2014, http://reports.weforum.org/global-risks-2014/part-1-global-risks-2014-understanding-systemic-risks-in-a-changing-global-environment/. And mixed signals from economic and consumer indicators are contributing to uncertainty in the United States, where overall corporate investment growth has been weakening. … This uncertainty reflects an awakening of consumer consciousness along many dimensions. Consumer Products Insights From product innovation to retail consolidation, Bain Insights provide fresh analysis on this changing market. Consumers have expanded the definition of food and product safety to include attributes typically associated with health and wellness.41 Elisabeth Hagen, senior advisor on food safety, Deloitte & Touche LLP (former undersecretary for food safety at the US Department of Agriculture), recently presented findings from consumer and social media listening research on food safety. “We used to be able to be successful serving just core consumers in grocers and mass merchandisers, but now we need to be present and deliberate in fragmented consumer segments and more channels.”—Packaged goods sales executive Our first uncertainty for 2020 relates to the economic environment in the United States—specifically, whether the continuing recovery uniformly helps consumers at all income levels. Unfortunately, COVID-19, and its far-reaching impact on the industry, has created an unprecedented disruption that hinders the ability to accurately predict what may come next. Change was gradual and incremental. The shift toward new, as-yet-unproven digital marketing vehicles—by consumers and companies alike—could heighten the need to discover how to develop a better end-to-end consumer experience. Industry Trends. Continuous investments by industry players in R&D for development of new consumer electronic products including smartphones, smart wearables, and home appliances will drive the market growth. Ltd), Jack Ringquist (Deloitte Consulting LLP), Ben Stiller (Deloitte Consulting LLP), Alok Ranjan (Deloitte Support Services India Pvt. Given the multitude and potential magnitude of these projected marketplace changes, speed is equally critical. Companies should focus on committing themselves to investing in digital technologies with built-in analytic capabilities that help them better understand their consumers and the operational problems they are trying to solve. Speed of execution and completeness of action are just as important, if not more important, to consider. The ' Testing, Inspection and Certification for Consumer Products & Retail Market' research report added by Market Study Report, LLC, delivers a comprehensive analysis on the newest market drivers. Amazon Continues to … 2019 Consumer Products Industry Trends. Consumer Electronics Market size valued at USD 1 trillion in 2019 and is estimated to grow at a CAGR of over 7% between 2020 and 2026. Post author By arpit; Post date November 16, 2020; Currently, consumer 3D sensing products are playing a significant role across computing devices, smartphones, and gaming product original equipment manufacturers for utilization in 3D sensing systems. The majority of consumers (74 percent) are paying close attention to the nutritional content of the foods they purchase and try to avoid preservatives and chemicals. 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