Table Of Contents
- Growing focus on sustainability to augment the sector’s growth rate
- Integration of artificial intelligence to help the sector realign itself
- Innovations in health and wellness products to bring in new opportunities for growth
- Changing cultural preferences to boost the demand for beauty and personal care products
- The growth of the home and garden industry to expand the scope of the consumer goods domain
- Adopting New Trends for a Resilient Consumer Goods Sector
Roshan Deshmukh
Koyel Ghosh
Top 5 Emerging Trends for Q2 2024 That Are Expected to Reshape the Consumer Goods Domain
Growing focus on sustainability to augment the sector’s growth rate
The consumer goods sector has traditionally been one of the biggest contributors to plastic pollution and has been heavily criticized for its role in increasing global carbon emissions. The growing concerns regarding global warming and climate change have led to a massive rise in demand for environmentally friendly products from consumers worldwide. The growth in demand for eco-friendly furniture in residential and commercial spheres is one such trend witnessed in the consumer goods domain. Many companies have started adopting sustainable business practices. A major focus of multinational companies has been on reconstructing their global supply chains to reduce the carbon footprint of their operations. As part of this effort, these players are gradually shifting to manufacturing recyclable and biodegradable packaging materials.
Integration of artificial intelligence to help the sector realign itself
Like most other sectors of the economy, emerging technologies like Artificial Intelligence are expected to play a huge role in transforming the consumer goods domain in the second quarter of 2024. Many wellness product manufacturers have started to adopt AI and machine learning algorithms to design their marketing campaigns to enhance their customer base. These algorithms have helped these companies analyze the consumption patterns and spending habits of their customers. Thus, by using advanced predictive analysis techniques, these companies deliver personalized marketing messages to their customers. The success achieved by these conglomerates in effectively engaging with their customers is expected to compel many new entrants to hop onto this new trend in Q2 2024.
Innovations in health and wellness products to bring in new opportunities for growth
The rising awareness regarding the importance of having a balanced lifestyle and healthy diet is expected to boost the demand for healthier snacks and personalized nutrition services. The focus on immunity building has also increased in the past few years, partly due to the COVID-19 pandemic. To address these demands from consumers across the globe, many health and wellness product manufacturers have started launching niche products that cater to a specific section of the population. For example, companies like Dr. Zen Products, Inc., and Orthofeet Inc., have launched diabetic footwear, which are specifically designed to reduce the risk of skin breakdown. Along with physical health, companies in the consumer goods domain are targeting different facets of holistic wellbeing including mental health and sexual wellness.
Changing cultural preferences to boost the demand for beauty and personal care products
Since the past few decades, the rising pace of urbanization and industrialization across developed and developing countries has led to a massive rise in the disposable income of people in these countries. Moreover, the cultural preferences of people have also changed substantially due to urbanization. These socioeconomic factors have increased the demand for beauty and personal care products including cosmetics, skincare products, fragrances and perfumes, and toiletries. The shift toward natural and herbal products is estimated to reshape the consumer goods sector. Furthermore, the growing penetration of Internet services across the globe is predicted to increase the market share of the online beauty and personal care industry.
The growth of the home and garden industry to expand the scope of the consumer goods domain
In the past few years, an increase in interest in home improvement and gardening has been observed which is projected to boost the home and garden industry. The development and launch of new styles by companies in the home decor market is another trend that is likely to help the consumer goods domain flourish in the second quarter of 2024. Due to these trends, this market, which accounted for $647.4 million in 2022, is set to reach $1.1 billion by 2032, thereby growing at a CAGR of 4.9% in the 2023-2032 period. Along with this, there is a rising preference for DIY projects due to their cost-effective nature which is also expected to play a role in modifying the contours of this sector in Q2 2024.
Adopting New Trends for a Resilient Consumer Goods Sector
As highlighted before, various socioeconomic and demographic factors are anticipated to influence the consumer goods domain in the coming period. Along with this, a shift toward sustainability, the growing integration of Artificial Intelligence, and innovations in health and wellness products are projected to augment the growth rate of this sector. Finally, the expansion of the home and garden industry and cultural preference for beauty and personal care products are set to transform the domain in Q2 2024.
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