According to Bain & Company, the consumer products industry is undergoing a structural reset as multiple disruptive forces converge. Rather than managing through another economic cycle, executives are navigating permanent shifts in consumer behavior, technology, retail economics, and portfolio strategy.
Several data points illustrate just how quickly the landscape is changing.
- Insurgent brands now account for 36% of U.S. industry growth.
- Nearly 50% of consumers already use generative AI to research and compare products before making purchasing decisions.
- Many large CPG companies continue to support “zombie brands”—brands that consume capital and management attention without creating meaningful consumer value.
Individually, each trend is significant. Together, they represent a fundamental transformation of how value is created across the consumer products ecosystem.
Five Forces Reshaping Consumer Products
1ne. Retail Economics Are Changing
Retailer profit pools are expanding beyond traditional trade spending. Retail media networks, first-party consumer data, and new partnership models are redefining how manufacturers create value with retail partners.
Winning organizations will increasingly collaborate on data, personalization, and joint growth strategies rather than relying primarily on promotional investments.
2wo. GLP-1 Adoption Is Reshaping Consumer Demand
The rapid adoption of GLP-1 therapies could significantly alter purchasing behavior across multiple food and beverage categories. Some analyses suggest that up to 50% of future growth in leading categories may be affected as consumers change eating habits, reduce calorie consumption, and shift toward healthier product choices.
This represents one of the most significant demand shifts the food industry has faced in decades.
3hree. Technology Spending Is Outpacing Business Results
Technology investments have more than doubled since 2020. Yet many organizations have seen only modest improvements in productivity or operating margins. The challenge is no longer investing in technology—it’s integrating AI and digital capabilities into everyday decision-making across commercial operations, supply chains, forecasting, marketing, and innovation.
Companies that simply digitize existing processes may continue to struggle. Companies that redesign how work gets done stand to create far greater competitive advantage.
4our. Volatility Has Become the New Normal
Consumer demand, geopolitical uncertainty, inflation, supply chain disruptions, and rapidly changing input costs have made forecasting increasingly difficult. Organizations need planning capabilities that are faster, more dynamic, and supported by predictive analytics rather than relying on historical assumptions. Agility is becoming a core competitive capability.
5ive. Portfolio Complexity Is Becoming a Strategic Liability
Many large CPG organizations continue to manage broad portfolios containing brands that no longer generate meaningful growth or strategic value. These “zombie brands” consume marketing budgets, manufacturing capacity, organizational attention, and leadership focus. Future growth may depend less on launching additional brands and more on making disciplined decisions about which brands deserve continued investment—and which should be divested or retired.
The New Growth Playbook
The next generation of industry leaders will likely look very different from those that succeeded over the past twenty years. Competitive advantage will increasingly come from organizations that:
- Make bold portfolio decisions based on long-term value creation.
- Build deeper consumer relevance through better data and insights.
- Embed AI across the entire value chain rather than treating it as a standalone technology initiative.
- Strengthen strategic partnerships with retailers beyond traditional trade investments.
- Simplify operations to concentrate resources where they generate the greatest returns.
The consumer products industry is not simply experiencing another market cycle. It is undergoing a structural transformation that is redefining how brands compete, how consumers make purchasing decisions, and how value is created across the ecosystem.
In this environment, sustainable growth will come less from doing more—and more from focusing relentlessly on what truly creates value.
The organizations willing to simplify portfolios, embrace AI strategically, strengthen retailer collaboration, and remain deeply connected to evolving consumer needs will be best positioned to lead the next era of consumer products.
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