Each year, IRI partners with the Boston Consulting Group on the annual Growth Leaders in CPG study. It analyzes the growth performance of hundreds of public and private consumer packaged goods companies. In 2020, U.S. CPG growth in measured channels significantly accelerated by 10.4%. That dramatically outpaced the prior three-year compound annual growth rate (CAGR) of 1.8% due to COVID-19-related shifts in consumer shopping and consumption.
- Bimbo Bakeries USA® was the growth leader among large companies with more than $6 billion in 2020 sales. Next in line were General Mills, Mondelez International, Conagra Brands and RB. Among midsize companies with $1 billion to $6 billion in 2020 sales, Mark Anthony Brands saw the most growth. Vi-Jon Labs was the growth leader among companies with less than $1 billion in 2020 sales.
- As CPGs seek to lap strong 2020 growth, IRI and BCG predict a set of levers from 2020 are likely to revert to pre-COVID-19 levels. These include a rebound of the convenience channel and away-from-home consumption, demand for variety, right-sizing of packs, and increasing inflation pressure.
- One-time COVID-19 trend spikes include a sharp acceleration in select, previously declining categories during 2020, namely at-home food and beverage. Paper products are likely to revert to near historical levels.
- Trends that accelerated in 2020 and will sustain
- E-Commerce: COVID-led acceleration in e-commerce adoption and increased investments from retailers
- Bifurcation of CPG spend: Increased premiumization via large CPG innovation and hyper-targeted small CPGs; continued development of own/store brands and value brands
- Category Demand Shifts: Consumers are likely to continue valuing four broad sets of benefits – self-care and societal-care, at-home indulgence, at-home convenience and taste exploration (both flavor and claims-driven)
Growth Leaders Webinar
The report also includes a summary of a recent webinar IRI and BCG conducted with leaders from Bimbo Bakeries USA, The Hershey Company, General Mills, Keurig Dr Pepper and KISS Products. These winners shared strategies on how they achieved spectacular results and their outlook for 2021.
Visit the IRI COVID-19 Info Portal and Data Dashboard, which includes our CPG demand, supply, e-commerce, channel shift and forecast indices and inflation tracker, for more reports and analyses on how the pandemic is impacting CPG and retail.