A Brief Industry Outlook of the Consumer Goods Sector for Q1 2024

The consumer goods sector includes industries that manufacture goods for private household consumption. Thus, the consumer goods domain is one of the biggest sectors of the economy and plays an important role in the daily lives of the common populace. The different industries and businesses operating in this domain have launched several consumer products in the past few months and have also invested heavily in technological advancements to help the sector grow. Along with this, several other companies have established alliances in the form of mergers and acquisitions to establish their dominance. Allied Market Research, owing to the sector’s importance, has closely studied these alliances and product launches and has offered an in-depth analysis of the industry’s performance in the first quarter of 2024.

A Positive Impact: Mergers and Acquisitions Influencing the Industry’s Growth

The consumer goods sector is vast and has the presence of several multinational industries and companies. The sector is thus highly competitive, and to establish a lead in such a dynamic market, these companies have entered strategic alliances with their peers.

In January 2024, Haleon, a major consumer health company, announced that it had offloaded ChapStick, a lip balm brand, to Suave Brands Company. Haleon released a statement after this disinvestment stating that the sale to Suave Brands was made by the company to simplify its product portfolio.

In February 2024, Guess, a leading lifestyle brand, announced a partnership with WHP Global, a brand management company. Under this collaboration, a joint venture was launched by these companies to acquire Rag & Bone, an American fashion label. This is Guess’ first-ever acquisition and is aimed at improving the company’s global distribution network.

In February 2024, Unilever, a British consumer goods company, announced the acquisition of K18, a haircare products manufacturer. Unilever released a statement after the acquisition stating that the move was in line with the company’s policy to get hold of premium brands that were culturally relevant to its product portfolio.

How are innovations and partnerships shaping the contours of the consumer goods domain?

In the last few months, companies operating in this domain have increased their focus on innovations to improve their product portfolio in the long run.

In January 2024, ITC, a multinational conglomerate, announced the launch of a pilot project for product authentication purposes. As part of this pilot project, ITC decided to employ AI-powered technologies to understand consumer trends in the dairy industry. These AI-powered technologies have helped the company ascertain cow health and maintain the highest standards of product authentication.

In February 2024, L’Oréal Groupe, a major consumer goods manufacturer, announced a collaboration with Prada S.p.A, a luxury fashion brand. As part of this collaboration, both companies have agreed to the creation and development of a new luxury products brand, Miu Miu. Also, both these companies have agreed to focus on the distribution of the products developed under the new brand using their well-established channels.

In February 2024, Yeti, a major player in the travel accessories industry, announced the acquisition of Mystery Ranch, an American backpacks and bags manufacturer. After the agreement signing, Yeti’s CEO said that the acquisition was aimed at improving the company’s capabilities in manufacturing load-bearing equipment for the harshest environments.

Product and service launches that are expanding the scope of the domain

In February 2024, Febreze, a household products brand, announced the launch of Romance & Desire, the company’s third annual scent of the year. The company released a statement saying that the product was launched after intense research in the science of olfaction and was designed using consumer-centric digital tools.

In March 2024, L’Oréal Groupe, a cosmetics industry giant, launched MelasylTM, an innovative formula to address age spots and post-acne marks. The product is in line with the company's product portfolio of advanced skin care products that aim to tackle common skin pigmentation issues.

In March 2024, Olay, an American skincare company, launched its Indulgent Moisture Body Wash collection. Enriched with moisturizers and Vitamin B3, these body washes are designed to offer hydration and glow to the skin with regular use. These body washes are available in different fragrances including Rose and Cherry Crème, Moonflower and Neroli Oil, Caribbean Guava and Coconut Oil, Mango Butter and Vanilla Orchid, and Elderberry and Almond Cream.

Using technology to unlock the true potential of the industry

Technological advancements in the industry have been a major growth driver of the consumer goods sector. These advancements have opened a whole new range of exciting possibilities and investment opportunities for businesses in this region. These advancements have also inspired new entrants in the industry to take risks and compete with the industry giants in the sector.

In January 2024, Shiseido, a major player in the skin care products domain, announced the development of Beauty AR Navigation, an advanced digital tool to support beauty treatment regimes. This digital tool is designed for people who do not have access to in-person instructions and want to practice and master the science of beauty treatment. The tool can be integrated and accessed through smartphones and tablets, thus helping bridge the digital divide in urban and rural areas.

In March 2024, Kao Corporation, a chemicals and cosmetics manufacturing firm, inaugurated its Smart Garden Meguri, proprietary plant factory that reuses CO2 emitted by Saga City incinerators. Also, the company announced that it had developed technology to obtain pure botanical extracts for future production uses. This environmentally sustainable and energy-efficient plant has gained widespread acclaim in no time.

In January 2024, L’Oréal Groupe, a multinational consumer goods company, announced the launch of AirLight Pro, an advanced hair-dying tool. The company launched this product at CES® 2024, the world’s largest tech event that took place from 9th January to 12th January 2024 in Las Vegas. The product is powered by infra-red technology and offers advanced care to different types of hair texture, while at the same time helping in energy conservation by about 31%. The product launch is expected to help the company flourish in the personal care electrical appliances industry.

Opening new avenues of growth: How did the consumer goods domain perform in the first quarter of 2024?

In the post-globalization era, the developed and developing economies have seen a massive rise in the pace of industrialization and urbanization. As a result, the overall disposable incomes of people living in such developed and developing countries have increased drastically. This has led to a growth in demand for different types of consumer goods and products. Apart from this, the increasing shift toward self-care has also positively impacted the industry’s growth. These factors, along with mergers, acquisitions, partnerships, and technological advancements have helped the consumer goods domain make a good start in 2024. With increasing emphasis on innovation and research, the number of opportunities in the sector is predicted to grow in the next few years.

For a comprehensive understanding of the consumer goods industry, its growth drivers, and investment opportunities, contact our experts, today!

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