Digital technology has revolutionized the world of CPG and the future of customer experience.

2020 has proved to be the year of technological innovation. While advanced technologies have made everything digital and transformed all aspects of business as well as life, they have a significant impact on the CPG industry. From smart packaging to pop-up stores, technology enables CPG companies to engage with consumers in new and innovative ways. As consumers increasingly research, purchase and engage with brands digitally, it will likely become imperative for CPG companies to adopt disruptive technologies.

The continuous growth of direct-to-customer (DTC) brands, the re-emergence of pop-up stores and online retailers building a brick-and-mortar presence are all driven by the development and deployment of cutting-edge technologies, making more avenues for brands to have a dialogue with consumers.

Advancements in technology, along with the continued pursuit of customer-centric services, transparency, smart supply chains, among others will be transformative trends for the CPG industry in 2020.

Here are the top 3 CPG trends shaping the industry in years to come.

Locally Produced Products Will Rise 

With the economic slowdown, protectionism, and trade wars, along with climate change, the CPG sector is entering a new era of consumerism. Manufacturers now require to produce locally as the duel tariffs and consumer alignment with locally sourced products are continuing to increase. The import of fewer goods and searches for economic differentiation is also increasing pressure on the manufacturer to produce locally.

5G Will Revolutionize CPG 

As the next-generation of wireless technology capable of affecting a large number of industries, 5G is set to advance connectivity across networks. And this is particularly significant as many Internet of Things (IoT) devices are on the rise. With 5G, the IoT ultimately becomes a mainstream reality, offering end consumers with access to more data at their fingertips, without delaying virtual response. So, they are less limited in their ability to come to an informed decision on the retailers and brands they want to work with. 5G also will transform smart packaging and delivery, through applications like smart sensors that can amass real-time data to make sure viable internal package conditions for food and medications.

More Visibility and Integration of Omnichannel Sales

Most customers today are purchasing their consumer goods online and it’s still growing and omnichannel. This trend shows that consumers value choice and convenience, along with appreciating the speed that the combination of online ordering and store pick up provides. Companies that utilize online and offline channels to offer shoppers a better service than either can present on its own are experiencing the most growth. Once a CPG company offers these and adds home delivery services, they can easily manage to please a large number of customers as well. Online players in this sector like Amazon, among others are now offering CPG delivery through online ordering, and the number of users for this service is rising rapidly.