What's Happening?
According to Circana's 14th annual report, private label and smaller consumer packaged goods (CPG) manufacturers with annual revenues under $1 billion gained market share in 2025. The report highlights that some of the largest CPG food and beverage companies
also performed well by employing successful strategies. Notable companies in the $8 billion-plus revenue group include Red Bull, Unilever, and The Coca-Cola Company. The report attributes the success of these brands to a combination of trust, value, relevance, innovation, competitive pricing, and increased distribution. Smaller brands also leveraged digital and social channels to engage customers, using these platforms as 'discovery engines' to drive brand education and purchases.
Why It's Important?
The growth of private label and smaller CPG brands in 2025 reflects a shift in consumer preferences towards value and novelty. This trend indicates that consumers are increasingly willing to experiment with new brands that offer unique products and experiences. The success of these brands highlights the importance of digital engagement and the ability to adapt to changing consumer demands. For larger CPG companies, the report suggests that maintaining competitive pricing and expanding distribution are key strategies for sustaining growth. The findings could influence industry players to focus on innovation and customer engagement to remain competitive in a dynamic market.
What's Next?
As private label and smaller CPG brands continue to gain traction, larger companies may need to reassess their strategies to maintain market share. This could involve increased investment in digital marketing and innovation to meet evolving consumer expectations. The report's emphasis on value and relevance suggests that companies will need to focus on delivering products that offer multiple benefits to consumers. Additionally, the use of digital platforms for customer engagement is likely to become more integral to brand strategies. Industry stakeholders will be monitoring how these trends impact the competitive landscape and influence future growth opportunities.
