CPG marketing spending has increased by +1.7 percentage points since 2022 and is now up to 19.5% of sales. As units continue to decline across CPG, manufacturers face a four-way pressure on marketing spending: consumer cost sensitivity, retailer efforts, private label growth, and an increase in marketing spending mediums. With 2025 marketing spending expected to reach its highest level in years, manufacturers are seeking to invest beyond price and re-establish strategic brand-building practices.
Only 1 in 5 manufacturers are very confident in their plans for 2025, punctuating the importance of establishing strong processes and tools. To create a cycle to reach solid ground, manufacturers should establish a clear organizational vision, build a foundation of consumer & shopper insights, develop tactical guidelines for investment and pricing, and evaluate performance to maximize growth and profitability. Cadent is a trusted partner for CPG manufacturers to support these initiatives.
In this report, you will find:
- The market dynamics CPGs today must navigate
- How CPGs are investing beyond price in 2025 to build their brands
- The choice between deeper discounts vs. frequent promotions
- Which levers are most impactful with today’s value-seeking shoppers
- Ways CPGs can optimize trade for profitability and competitive success
We trust the insights from Finding Solid Ground with CPG Under Pressure will be insightful and actionable as you plan your marketing spending for the year ahead. If you would like to connect further about the research or our capabilities, we can be reached here.
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