2020 Consumer Products Industry Outlook
Consumer Packaged Goods (CPG) trends: Navigating Industry 4.0
With economic uncertainty looming, how can CP executives balance prudent investment strategies with technology initiatives that address the needs of increasingly empowered consumers? Our 2020 consumer products industry outlook explores Industry 4.0 dynamics, rising consumer expectations, and new go-to-market strategies.
Navigating Industry 4.0 in uncertain times
We are currently in the longest period of economic expansion in US history. While it’s not possible to predict the timing or form a downturn might take, one will likely eventually occur. Slowing international trade and uncertainty among businesses is weighing on growth in key advanced and emerging economies.
Faltering global trade is now affecting major exporting countries in Europe, such as Germany, which only narrowly avoided a recession in Q2 2019. The uncertainty over Brexit has further dented business investment in the United Kingdom. Key emerging markets have also been experiencing a loss of economic momentum. And mixed signals from economic and consumer indicators are contributing to uncertainty in the United States, where overall corporate investment growth has been weakening.
Despite the difficulty of predicting when a downturn might occur, companies are right to prepare now by pressure-testing their strategies.
Download our full report to learn more about the challenges and opportunities the 2020 CPG trends present.
Key takeaways on consumer product trends
Given the uncertain economy in 2020, CP companies will likely be judicious about investments in Industry 4.0. Companies should focus on committing themselves to investing in digital technologies with built-in analytic capabilities that help them better understand their consumers and the operational problems they are trying to solve. Collecting data is just the first step. Data is only useful to the extent that it can be harnessed to generate insights.
Critical to creating seamless customer experiences in the future and fully realizing the potential rewards of Industry 4.0 will likely be:
- Developing data analytics and intelligent decision-making capabilities.
- Leveraging consumer insights to guide investment decisions.
- Retraining existing employees while hiring new talent.
These strategies can drive the way forward for the consumer goods industry in 2020.