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A closer look at the consumer packaged goods industry

Aug 21, 2015  |  Mark Gravett  |  consumer packaged goods | 0 Comments


The perception of the unique challenges faced by the consumer packaged goods (CPG) industry varies across the different continents we surveyed for our recent index. However, high costs and low margins ranked the highest among our global constituents. The following infographic ranks the top two issues by region according to the companies we surveyed in North America, Europe, Asia, South America and Africa.


Our findings show that the perception of challenges unique to the CPG industry varies depending on company size. For example, high costs were reported as the number one issue for businesses with more than $10 billion in revenues, while strong competition was the highest ranked concern among companies with less than $300 million in revenues.



We have witnessed a dramatic shift in the prioritization of challenges within the CPG industry. Over the course of a six month period, the issue of high costs has roughly doubled in terms of the number of businesses that consider it a major issue. On the other hand, our studies show that growth is much less of a concern than it was six months ago.



What are CPG companies doing in response to the latest industry challenges? According to our data, cost reduction is the number one initiative on our list in both Europe and North America. Given its direct correlation with high costs, it is no surpise that cutting costs is a top priority for executives. Supply chain improvement ranked second globally and was the number one initiative in Asia. This is a sign that the CPG industry focusing more on the efficency of the supply chain to counteract squeezed margins and strong competition. Third on the global list of initiatives is sales effectiveness, which ranked first among South American companies and second in Asia and Africa.    



The infographics presented here are based on data from our latest CPG Index. The first in a series of industry reports, the Alexander Proudfoot CPG Index offers an insider’s view of the industry – highlighting how companies are responding to current challenges. It is supplemented by factual data analysis, interviews with CPG business leaders, and analysis and commentary from our very own team of experts.

For our full analysis of the CPG industry, click the button below to access the Alexander Proudfoot Index.



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