3 DTC brands taking over the consumer goods industry

What do the food, beverages, toiletries, and cleaning supplies in your household all have in common?

They’re part of a multi-trillion dollar industry that is often taken for granted.

With a projected CAGR of 5.1% over the next 5 years, the consumer-packaged goods, or CPG sector, was once a space dominated by billion-dollar companies (like Procter & Gamble, Coca-Cola & L'Oréal.) But in recent years, smaller DTC brands have been gaining momentum in the space.

I know all of you marketers who don't operate in the CPG industry are like, 'This sounds boring!!! What does this have to do with us?!'

And I get it because, same.

But, hear me out.

The dynamics of the CPG market, such as product demands and consumer behaviour trends, influence our marketing strategies.

And when we understand what customers want and what's happening in the market, we can make sure we're focusing on the right things in our campaigns.

We’ve already seen a ton of innovation and disruption this year when it comes to the actual packaging of CPG products. But according to Forbes, we’re set to see a new wave of marketing activity in the industry. The publication predicts that brand strategies will evolve to respond to changing consumer behaviour and advancements in technology.

CPG companies rated e-commerce as the most critical consumer technology and media trend. So they will have to work hard to uplevel their digital presence and make sure they're using data to make decisions.

In short, the rise of CPG ecommerce shopping is creating new opportunities for brands to reach consumers directly and in a more personalised way.

So, what are some emerging brands in the industry, and what are they getting right in this changing market?

Kosas

The personal care sector is a huge component of the CPG industry. Consumer preferences have steadily evolved towards healthier and more sustainable lifestyles. And Kosas is a brand that has taken advantage of this adaptation.

Kosas is a clean skincare and beauty company that 'makes makeup for skincare freaks.' The brand has built a cult following on TikTok through product education and launches. Their strategy is all about showcasing their beloved products and teaching their community how to best use them. And they never let their audience forget their product benefits and effectiveness, reminding customers why they stand apart from the competition.

Catalina Crunch.

The largest sector within the CPG space is food and beverage. And this industry has dramatically changed in recent years to cater to a heavily health-focused market. Catalina Crunch has carved out a niche with its innovative approach to low-carb, high-foods.

Sparked by the founder’s journey with Type 1 Diabetes, the company has exploded from a passion project to a thriving business. The brand has leveraged data and performance metrics to improve their retail strategy. And this allowed them to grow rapidly and expand into multiple retail channels.

Everdrop.

Another large category in the industry, spanning a diverse array of everyday use, is household items. Consumers are increasingly prioritising sustainability. This means there has been a noticeable expansion in the availability of eco-friendly alternatives. And this is particularly true for cleaning products. (Just walk down the aisle at your grocery store and you’ll see what I mean.)

Everdrop tapped into this demand, creating sustainable laundry detergents and plastic free cleaning tablets. The brand raised $80 million in their last round of funding in 2022.

What do these brands have in common?

They have a strong understanding of their target consumer base, often derived from data driven insights. Shoppers are increasingly switching to e-commerce options for their consumer goods. These brands have seized the opportunity. And whatever industry you're in, we could all learn a thing or two from their success.

-Sophie, Writer