CPG Innovation:
Your Competitive Advantage in Turbulent Markets

Inflation in the U.S. has sent the cost of food, materials, and energy soaring at the fastest rate in 40 years, according to the Department of Labor. CPGs are facing increased manufacturing, ingredients, and raw material costs across most product types. The cost of manufacturing soaps and detergents has risen 14% since the beginning of 2021, while milk has increased in cost by 43% in the same period.

Consumers are reacting to these rising costs. According to McKinsey, 74% of consumers are “buying food in bulk, adjusting the quantities purchased, and purchasing a less expensive brand or private label” to make their money go further.

These combined pressures will have a major impact on CPG profitability. You need to find ways to innovate and adapt without losing your market share.
But the existing R&D processes for testing and prototyping product innovations are too slow and linear. They won’t help you adapt to the most challenging market conditions in 40 years. How can you combat these market challenges and preserve your bottom line?