Three Crucial Crusades CPG Must Address in 2025

“Crusades” might sound dramatic, but consumer packaged goods (CPG) brands are facing some big battles as we enter the new year, not least - the quest for people’s attention in an age of hyperactivity. Attention has become a rare commodity, so there is little room for half-hearted moves. In 2025, and beyond, brands must be bold - or risk being forgotten.

Consider Jaguar’s recent marketing pivot. Critics scoffed at its polarizing teaser ad that didn’t feature a single car, not to mention their radical concept design. Yet I applaud the brand’s audacity. We live in a world where your brand must either electrify the conversation or vanish from it. As Oscar Wilde said, “The only thing worse than being talked about is not being talked about.” For CPG, that means investing in bold responses to many of today’s challenges.

As we head into 2025, every boardroom is grappling with one question: Where will tomorrow’s growth come from? Volume gains have become scarce, giving rise to whispers of “peak consumption” in various markets. Three major forces stoke that fear:

Demographics: Population growth has plateaued or even reversed in many leading economies, shrinking the straightforward path to increased sales.

Environmental Awareness: Hashtags like #Overconsumption are more than passing trends. Younger consumers openly question the toll that mass production and waste place on the planet. Major brands must consider revenue models beyond product sales alone.

Intentional Spending: More consumers are shopping on purpose, often trading quantity for higher-quality or more sustainable goods. This rise in intentional consumerism inevitably depresses scope for impulsive behaviors that have been relied upon in the past to drive category sales.

These shifts alone would pose a formidable test. But there’s another potential disruptor on the horizon: GLP-1 medications like Ozempic.

Adding rigor to conversations about the impact of these appetite suppressing drugs, a brand-new study from Cornell’s S.C. Johnson College of Business has found that households with at least one member starting a GLP-1 regimen showed an overall 5.5% drop in grocery spending, or $416 less per year. In higher-income households, the reduction was -8.6% - roughly $690 wiped off purchasing power annually. The largest declines appeared in ultra-processed categories such as sweet bakery products, salty snacks, cookies, soda, and ice cream. Knock-on effects are also being detected across alcohol, tobacco and other hedonic havens. With an estimated 10% of Americans soon to be on these medications at any one time, these impacts are enough to put multiple categories into reverse.

Experts like Faris Zuraikat at the General Medicine & Institute of Human Nutrition have told MMR’s Impact Makers podcast that GLP-1 drugs reduce not just food intake but also cravings by modulating the brain’s reward mechanisms. When rising health consciousness intersects with an actual decrease in appetite, brands that depend on volume-driven sales will be facing some harsh realities. Yet there is opportunity here, as consumers eat less, they will demand products that deliver optimal nutrition in fewer calories, emphasizing:

Protein: Vital to preserving lean muscle mass, particularly as people lose weight on GLP-1 drugs.

Fiber: Crucial for digestive health, especially since GLP-1 medications slow gastric emptying.

Forward-thinking brands like Nestlé have begun rolling out frozen ready-meals that align with the nutritional needs of GLP-1 users. There’s a market gap for smaller portions (less really is more for these consumers), nutrient-dense snacks, and fortified recipes that cater to consumers still seeking flavor but with a focus on smart, functional choices. To top it all, there is an urgent need for products that maintain the pleasure of food via the senses. Else, where will pleasure come from?

To service manufacturers need for volume growth, it will be a relief to many that there is a mechanism with the potential to generate volume upsides. Recent research by MMR has found that online “discovery” searches – which are searches relating to a new product or experience, are in fast ascent – by +11% in the last 12 months alone. When applied to food, the figure rises to +23% and for beauty, searches related to discovery are up by a staggering +72%.

Drawing upon over 2,500 conversations with main shoppers around the world, MMR has also revealed a collective desire among consumers for new and novel experiences that support their need for personal development, a need to break the monotony of daily life and a need to experience daily “glimmers” to offset the angst. The research concludes that modern consumers regard new products as ultimately better – reflecting a backdrop of accelerating technological progress.

For brand planning, manufacturers must plan for an increasing proportion of sales being met by new products. For core ranges, there will be an increasing need to activate continuous programs of improvements and upgrades to ensure that their modernity and relevance is maintained. The key isn’t just launching new items but generating an impulsive dynamic that expands the entire category. Think limited-edition flavors, unexpected collabs (as below), reimagined packaging, or upgraded formulas that keep fans engaged.

In 2025, companies investing in product superiority programs might wish to rethink. Quality is now universal. Most consumers perceive private labels to be a parity with national brands. No branded manufacturers can rely on the “ours is better” argument of old. Instead, success hinges on engineering sensory-driven product theater capable of building fresh memory structures with audiences - supporting brands’ mental availability, not to be underestimated at a time of falling campaign effectiveness.

Even giants like Procter & Gamble, once fixated on tangible superiority, now talk about creating “first-use wow” moments - peak product experiences that anchor positive associations in consumers’ minds. With social media’s fleeting attention spans, these theatrical touches are becoming vital for keeping brands salient. Activate programs designed to stimulate consumers’ senses through dynamic packaging, unexpected flavors, or intriguing textures that invite people to pause, share, and remember.

To thrive in the coming years, CPG must tackle three intertwined priorities:

Adapting to Ozempic: Embrace fortification and consider portion sizes that fit a world of reduced cravings.

Portfolios of Discovery: Capture rising curiosity by increasing output of new and novel products whist safeguarding core ranges with continuous upgrade programs.

Elevating ProductExperiences: Go beyond quality to create lasting emotional imprints through immersive sensory design.

In a fragmented media ecosystem, playing it safe is the fastest route to irrelevance. Brands that dare to experiment, much like Jaguar’s controversial pivot, will face scrutiny - but they’ll also command the limelight. By addressing consumers’ changing needs and desires while amplifying the theatrical element of every usage occasion, you’ll do more than just survive the shift in consumption habits—you’ll spark excitement and position your brand as a leader in a saturated space.