The ability of companies in the consumer products industry to quickly adapt, innovate and differentiate themselves in the marketplace is often essential to success and driving brand growth.
According to Deloitte Insights’ “United States Economic Forecast,” the U.S. economy is likely to continue to grow at a moderate 2-2.5% rate in 2018. A key source of strength is consumers, who have benefitted from strong labor, rising incomes, record low unemployment and low inflation. Households are enjoying growing wealth, and consumer confidence remains elevated despite uncertainty in the political and economic policymaking areas.
Companies in the consumer products industry are developing newer and bolder strategies to execute traditional levers against a backdrop of a more stable U.S. and worldwide economy. Among the latest trends are:
- Globalization. Companies in the consumer products industry will strive to strategically capitalize on growth in emerging markets, and seek opportunities to acquire or partner with companies to enable access to consumers, leverage market solutions, and in some cases, access sources of raw material.
- Innovation. Companies in the consumer products industry have traditionally looked to innovate as a source of growth and will try newer and bolder strategies in 2018. Expect many to take an agile approach to developing, testing and iterating innovative ideas compared to traditional, highly structured, more time-consuming testing methods.
- M&A activity. Companies in the consumer products industry are often increasingly looking to expand across geographies and reach out to markets that can drive both sales and profitability.
- Digitization. Companies in the consumer products industry are aligning technology in creative and efficient ways to optimize customer engagement and influence the consumers’ path to purchase.
Read the 2018 Consumer Products Industry Outlook from Deloitte, Chicago, to learn more about these and other trends.