According to Nielsen and Rakuten, 90% of the 2018 growth in CPG’s sales came from online sales. Nearly 50% of US consumers purchased a product on line in 2018. Convenience, demographics and the proliferation of unique new products are some of the many reasons that are given for this shift in consumer behavior.
Distribution methods to the consumer are varied. Many come from a large, highly automated shipping center like Amazon; some come direct from a local retail grocery store via Instacart, Uber Eats or self driving vehicles; others come direct from smaller manufactures that are competing directly with the large CPGs. In all cases these products are being handled 20 + times more than a traditional retail sale. This will create a need for much more durable packaging using heavier board weights, plastic pillows and more to reduce damaged products and returns. There will be multiple sizes and case pack configurations for the same product as well as different products targeted to different consumers and channels. It will also require changing your packaging equipment to accommodate the new packaging materials as well as the new sizes for different distribution channels.
There are exciting and challenging times ahead with great opportunities for the innovative GPGs. We invite your response to this new trend and any suggestions of how Frain can be of assistance.