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Our take: The rapid shift in consumer behavior is a troubling sign for the CPG industry. Price sensitivity is only intensifying, and with little sign of relief, even historically resilient categories鈥攍ike snacks鈥攁re now feeling the pressure.

Among consumer packaged goods (CPG) products, the price gap between store and national brands has held relatively steady at around 20%, per Circana. This has given private label brands a clear advantage in aligning with consumer spending habits and trends:.

They account for an outsize share of growth in categories like CPG, beauty, and food and beverage鈥攚hich leaves companies in those categories most vulnerable to a sharp pullback in Hispanic spending.

Amazon tests yet another grocery format: Amazon Grocery, which is located next to a Whole Foods Market, aims to fill the hole left by the sister brand鈥檚 restrictions on certain ingredients.

SMS marketing can be especially effective in the consumer packaged goods (CPG) space. Beauty consumers are twice as likely to convert after receiving an SMS cart abandonment message, and 2.6 times more likely to convert after receiving an SMS price drop alert, according to a Listak report.

Grocery prices remain front of mind for many consumers: That presents an opportunity for value-oriented merchants such as Aldi, Target, and Walmart to steal share by offering low prices for Thanksgiving staples.

Why it matters: While overall retail media spending is growing at a healthy pace鈥�20.2% this year, per our forecast鈥擨nstacart鈥檚 share of retail media dollars is slipping as larger players like Walmart and Amazon scoop up a greater share of budgets and CPG advertisers experiment with new networks.

The big picture: Pepsi鈥檚 purchase of Poppi is part of the CPG company鈥檚 portfolio overhaul as it looks to accommodate consumers鈥� growing preoccupation with health and wellness. That strategy includes offering smaller portions of its signature products, along with more high-protein, whole grain, lower-fat, and lower-sodium items. This realignment has a few extra benefits.

Digital grocery sales are growing again across Western Europe as inflation forces higher spending, click and collect gains momentum, and mobile loyalty schemes come to the fore. 鈥�

CPG: Includes food products, household products, packaged goods, tobacco, personal care products, toiletries, and cosmetics products. (A large portion of these products are categorized in France as fast-moving consumer goods [FMCG].).

Instacart launches new ad formats to help CPGs drive impulse purchases: The delivery platform will roll out shoppable recipes, occasions, and bundles to facilitate discovery and boost brand engagement.

US CPG Industry Ad Spending 2024(蘑菇AV subscription required). Methodology: Data is from the Placer.ai report titled "Quarterly Retail Review: Q4 2024." Placer.ai analyzes 1.5+ billion monthly visitors across 20 million devices, 13+ million venues, thousands of segments, and 500+ mobile apps. Placer.ai is a location analytics and foot traffic data company.

That鈥檚 good news for restaurants and CPGs, provided they鈥檙e able to satisfy Gen Zers with the types of exuberant and diverse flavor profiles鈥攁nd colorful products鈥攖hat resonate strongly with the cohort.

Amazon鈥檚 Subscribe & Save program lost share across nine of the top 10 consumer packaged goods (CPG) categories between 2023 and 2024, according to June data from Numerator.

Navigating consumer behavior: The challenge for Kimberly-Clark, as for other CPGs, is how to manage tariff costs without alienating consumers who are already highly price-conscious鈥攁nd without being able to pull many of the levers that they used during the past few years of high inflation, such as introducing smaller package sizes.