In the future of mass consumption there will be room for only one large mass brand: says the new EY report State of Consumer Products, according to which 78% of retailers and 65% of consumer packaged goods (CPG) companies expect that the majority of shelves will be occupied by private labels, premium or niche brands.
The survey, conducted on more than 500 companies and 20.000 consumers worldwide, highlights a profound shift: 76% of retailers consider shelf space a crucial tool in negotiations with manufacturers and 67% aim to develop their own brands in the next three years. At the same time, 78% intend to expand into premium and niche product categories.
For EY, the challenge for manufacturers is to “regain relevance,” as Rob Holston, head of the Consumer Products sector at EY Global, says: “Only those who understand the changes in consumer expectations and relationships with retailers will be able to return to the forefront.”
The report also shows regional differences: in the US and Asia-Pacific, the idea of a retailer-led future dominates, while in Europe, the Middle East, India and Africa the forecast of greater collaboration prevails.
However, collaboration is still seen as essential: 75% of retailers and 77% of CPGs consider it crucial to success. The importance of joint innovation is growing, but only 31% of manufacturers consider themselves truly effective in developing new products quickly.
Artificial intelligence and data analysis emerge as decisive levers: 76% of manufacturers consider it essential to address the growing complexity of innovation, even if only a third think they have real competitive advantages in this area.
Finally, retail media remains a key area of cooperation: 63% of manufacturers consider it increasingly relevant in negotiations, thanks to the value of proprietary data collected by retailers.
