CPG was expected to grow 15.1%, but this outlook was tempered by the pandemic. We expect spending will return to double-digit growth next year (16.4%) and reach $22.58 billion.
The CPG vertical spans multiple subcategories. Some subcategories like essential goods and personal care products did well amid the pandemic, while others faltered. According to a March 2020 survey conducted by OnePoll for ecommerce technology company Red Points, more than three in five US internet users said they were more likely to purchase cosmetics, personal care products, and food and beverage products online during the pandemic.
And while US retail sales will decline 10.5%, overall sales of health, personal care, and beauty products will rise 6.9%, while food and beverage sales (much of which fall under CPG) will grow 12.5%.
CPG advertisers responded in different ways to this pandemic-induced shift in consumer behavior. Procter & Gamble, the biggest overall ad spender in CPG, increased spending for digital and traditional this spring as demand for cleaning and personal care products rose. However, Unilever cut advertising at the height of the pandemic, shifting spend from ice cream (its core food category) to hygiene products. After evaluating spend on a weekly basis, the company now plans to make significant increases during H2 2020.
Read the full article in Emarketer.