COVID-19’s Impact on CPG: Ecommerce Stats + Strategies for 2021
As we approach a post-pandemic world and look back on all of the rapid changes that have happened over the past year, it becomes clear that the ecommerce landscape has transformed. For instance, by April 2020, the industry saw ten years worth of growth in only three short months. Ecommerce is now a more crucial channel than ever for growing brands.
Online shopping surged in 2020 due to consumers staying home in light of COVID-19. Many shoppers reduced their discretionary spend last year and prioritized essential items, which often fall into the consumer-packaged goods (CPG) category.
The ecommerce opportunity for CPG brands has never been greater, and with shoppers starting to trickle into stores more, the opportunity for CPG brands to thrive across channels and earn repeat customers is only increasing.
In this article, we’ll dive into how COVID-19 transformed the CPG sector, how CPG brands can thrive both online and in-store in a world shaped by the pandemic, and why now is a prime time for CPG brands to step up their strategy.
CPG Growth in 2020
Consumer packaged goods are any items that consumers use almost daily and replace frequently (including food and beverage, personal care items, and household products). In light of health and safety concerns caused by the pandemic, digital has surged as a safe and efficient way to get essential CPG items.
In fact, more consumers have been shopping for CPG items online. In 2020, nearly 55% of consumers have used direct-to-consumer channels to purchase CPG products or nonperishable items they use on a regular basis.
Smart CPG brands have been committing more budget than ever to digital advertising and other online initiatives. This year, US digital ad spend for CPG is expected to increase 16.4% to $22.58 billion after a minimal increase of just 5.2% in 2020.
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Source Sarah Davis Bigcommerce.co.uk