The COVID-19 crisis has significantly affected demand for consumer packaged goods (CPG). People are doing more from home, trying new brands, and adjusting their purchases across price points and stores. And as safety concerns, economic anxiety, and a continued focus on health, wellness, and sustainability lead consumers to realize that there are many things they can do without, and a few things they can’t, there will be implications for CPG companies that should lead them to rethink their innovation strategy and brand portfolio choices.
COVID-19 is affecting different parts of the CPG sector in different ways. Many CPG manufacturers, for example, especially in food and beverage categories, have benefited from a spike in demand due to short-term pantry loading, with a sustained bump in sales after that due to more at-home activities. At the same time, e-commerce sales have increased, for both pick-up at the store and home delivery. And