22371: State of CP Report

What mega brands must do to confidently reignite relevance for consumers, customers and capital markets.

For decades, scale brought success to consumer products (CP) companies. They built mass-market brands that people trusted, believed in and even loved. They became part of the fabric of our daily lives. And they did it globally. But the rules have changed – and many big CP companies are facing a relentless drift toward irrelevance.

We believe CP companies can thrive again, and this report explores what that will take. At its heart is a simple but urgent choice: continue defending what’s slipping away, or act boldly to rebuild relevance with the three audiences that matter – consumers, customers (retailers) and capital markets. That means restoring belief in your brands, your strategy and your ability to lead, so you can shape your future with confidence. Because in this environment, an optimistic belief in the continuing value of mega-brands is not a byproduct of success. It’s the starting point. 

Contents

Importance of reclaiming relevance

Negative drift

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The companies finding growth today are the ones that act like their brands are still powerful – and make decisions that prove it.

Rob Holston

EY Global and EY America’s Consumer Products Leader

Positioned for success

Why CP companies must reclaim relevance

Based on original quantitative research with 20,000 consumers across 26 countries, 400 CP companies, 200 retailers and 190 consumer CEOs as well as interviews with CP leaders and insights from financial analysts, we explore the importance of reclaiming relevance and the characteristics of a CP company positioned for success. 

Read the report to understand the risks and opportunities facing CP companies as they navigate this new terrain. We examine what we call “Negative Drift” – a gradual but relentless erosion of confidence, both internally and externally. For many CP companies, decision-making is slowing, innovation is stalling and belief in the brand’s ability to lead is fading. In their response, many companies are falling back on Defensive Scale by stretching their portfolios, investing in owned channels or driving cost efficiencies – moves that aim to preserve their position rather than create new value. 

Negative Drift

Performance of large CP companies in 2024

However, not all companies are retreating and assuming a defensive posture. Some are acting with what we call “Disruptive Optimism” – a shift in mindset and business practice that powers bold, focused investment. These companies are simplifying their portfolios; accelerating their investment in technology so they can modernize their enterprise and make it fit for the future; focusing on growth and productivity; and engaging differently with consumers, their customers (retailers) and the capital markets.

Disruptive Optimism

These are the companies that are better positioned for success, and at a time when it is only getting tougher to stand out. When 78% of retailers believe that only one mass-market brand will remain on their store shelf, CP companies will need to be clear on what it takes to be the one that’s chosen. Growth and market share in the right categories are fundamental but so is being a strategic partner and a source of shared value. 

How EY can help

Our digital transformation platform jumpstarts your transformation journey to meet today’s competitive threats and future-proof your business.

Transformation Platform

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Disruptive optimism

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Consumers

Retailers

of consumers no longer consider brands as a significant factor in their purchasing decisions.

35%

of retailers believe that only one mass-market brand will remain on the store shelf.

78%

of consumers no longer consider brands as a significant factor in their purchasing decisions.

35%

CP companies achieved 5%+ growth in 2024

1 in 5

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of consumers view “innovation” as a cost-cutting effort.

42%

of CP companies say the challenges they face now require new strategies.

68%

of retailers believe that only one mass-market brand will remain on the store shelf.

78%

of retailers say shelf space is becoming a more significant tool in negotiations with CP firms. 

76%

CP companies were primarily driven by price growth

64%

CP companies were primarily driven by volume growth

21%

CP companies reported no net growth

14%

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Supply Chain Reinvention helps clients effect a fundamental change in their performance to support sales growth, become more cost-competitive, minimize risk and improve operational resilience.

Supply chain reinvention

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Our approach to customer experience is rooted in purpose, data and technology. We use a framework that focuses on the entire user journey to unlock insights to build game-changing customer experiences. Exceptional engagement drives long-term success and delivers enhanced value and sustainable growth.

Customer experience services

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We help consumer product and retail companies maximize artificial intelligence (AI) and machine learning (ML) investments by identifying strategic insights and high-value areas creating clarity across dimensions and functions to accelerate the adoption of generative AI (GenAI) for transformative change, value creation and long-term growth in alignment with your priorities.

Consumer Products & Retail AI Assessment

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Loyalty is no longer just about transactions, it’s about forging deep emotional connections with customers, building enduring relationships and fueling sustainable growth. The EY approach goes beyond traditional points and rewards and focuses on transforming connections and driving meaningful engagement.

Loyalty programs services

But sustainable growth comes from driving volume, and most companies are achieving growth through pricing – a model that is not sustainable in the long term.

And with only a handful of CP companies offering better returns than the 10-year U.S. Treasury Bond, maintaining relevance with consumers, customers and capital markets becomes a critical strategy. 

Consumers

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Get access to the full report.

What mega brands must do to confidently reignite relevance for consumers, customers and capital markets.