According to McKinsey & Company, the CPG industry seems to be doing well to the naked eye. However, it might be "losing its glow". After all the expansion in past years, this industry is not growing as rapidly in comparison. Mark McGrath, director of the Chicago office of McKinsey & Company says, "'Since the late '90s the industry has not matched its earlier strides in value, quality and convenience."'
Can this be true? Are all the new innovations we've seen while studying this industry not be helping the CPG industry as a whole? As a well-known global investment firm, should we trust them? I say yes. If you think about it, there have not been large innovations such as frozen food for a long time. Sure, CPG is making more safe, eco-friendly products, but is this enough?
http://mckinsey.com/clientservice/consumerpackagedgoods/insight.asp
http://www.mckinsey.com/aboutus/
It's hard to innovate products that already work well, which the majority of CPG products (e.g. paper towels, detergents, toothpaste, etc.) do. Only so much can change, perhaps by adding an additional blade to a razor, that make people immediately want to purchase new CPG items. As of now, no new CPG niches (that I can think of) need to be filled. As a result, the products will remain stagnant.
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