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ARTICLE · 21 OCTOBER 2024

Pump Up The Volume: Actionable Approaches For CPG Growth

AlixPartners Asia LLC
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The consumer packaged goods (CPG) industry faces a critical 11% decline in U.S. unit volumes, driven by rising prices, shifting consumer preferences, and economic pressures. To address this, companies must reassess brand strategies, innovate, and improve operational efficiency.

United KingdomConsumer Protection
Randy Burt
Randy Burt
Andrew Csicsila
Andrew Csicsila
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The challenge of declining consumer packaged goods (CPG) unit volumes is an increasingly critical concern across the industry. Over the past three and a half years, U.S. retail channels have seen a staggering drop of 25 billion units, representing an 11% decrease from the total 2020 food and beverage unit volume. This significant decline has raised alarms within the industry.

Traditionally, unit growth has been a cornerstone of the CPG growth model. The question is whether that is sustainable given recent volume trends and our expectation that CPG volumes will continue to decline. The conclusion we draw is clear: The CPG growth algorithm is broken. The 11% reduction in unit volume spans across various categories, and projections indicate that this downward trend is likely to persist over the next five years.

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