The role of consumer packaged goods (CPG) analytics has never been more pivotal in retail. As the backbone of modern retail strategies, CPG analytics influence critical business decisions and actively shape the future of purchasing. By harnessing data from multiple sources, businesses can maximize performance, improve promotion effectiveness, and drive innovation.
In an era where data is king, understanding the impact of CPG analytics is crucial for retailers looking to stay ahead of the curve. Join us as we unravel how these powerful tools are revolutionizing the industry and shaping market trends in 2025.
Why Do CPG Analytics Matter?
Not long ago, consumer packaged goods (CPGs) were considered golden investments, consistently outperforming the market. But that era has shifted. According to McKinsey, CPG brands have moved from a position of strength to one of underperformance, with consumers reporting they feel like they’re spending more but buying less. This shift means brands and retailers now have fewer opportunities to make an impression—and they have to get it right the first time.
The good news? With the right analytics solutions, businesses can transform raw data into actionable insights that drive smarter decision-making and stronger customer engagement.
By leveraging analytics platforms, companies can collect valuable data points to refine their offerings and create consumer-centric experiences. These experiences go beyond transactions—they build meaningful connections, foster brand loyalty, and encourage repeat purchases. With data-driven strategies, brands can boost sales performance and strengthen their position in the market.
Understanding key performance indicators (KPIs) is essential for brands looking to make data-backed decisions. Companies that leverage market share data and point-of-sale (POS) insights to anticipate consumer needs can establish themselves as trusted leaders in an increasingly competitive marketplace.
So, what is the data telling us? Let’s take a look.
6 Ways CPG Analytics Are Shaping Retail Trends in 2025
The CPG industry continues to evolve alongside changing consumer preferences, technological advancements, and shifting market dynamics. Many trends that gained traction in recent years remain strong, while new developments are shaping the retail landscape. As we move through 2025, here’s a look at the key ways CPG data analytics will influence retail strategies in the year ahead.
Customization Is King
Advanced customization in consumer engagement is a pivotal trend in the CPG market. According to Deloitte, “Brands that excel at personalization are soaring past their revenue goals because their customers buy more, more often, and remain loyal over time.” This involves more than just recommendations; it’s about creating an entire consumer experience that feels individually crafted, including:
- Personalized Offerings & Packaging – CPG companies use data analytics to match products to individual preferences, from targeted nutritional supplements to packaging that reflects consumer values, such as sustainable materials or aesthetically driven designs.
- Targeted Marketing & Omnichannel Strategies – Data-driven marketing enables brands to deliver highly personalized promotions, emails, and product suggestions, ensuring a seamless experience both online and in-store.
- Demand Forecasting & Dynamic Pricing – Analytics-driven insights help brands optimize inventory, ensuring products are available when and where consumers need them. At the same time, real-time pricing adjustments maximize profitability and consumer demand.
As brands refine their strategies, CPG analytics will continue shaping hyper-personalized experiences that go beyond transactions—deepening consumer relationships and brand loyalty.
Don’t Overlook Authenticity
Although it’s clear the demand for personalized experiences is at an all-time high, it should never come at the cost of authenticity. Consumers seek genuine interactions and truthful representations of products and services. The allure of personalized marketing—suggesting exactly what consumers want to hear—is strong, yet it must be rooted in reality. The notion of false advertising is not just frowned upon; it’s a direct path to losing consumer trust and loyalty.
An Emplifi study underscores this point, revealing that 40% of consumers are likely to recommend a brand to others following an authentic customer care experience. This statistic highlights the power of genuine interactions in fostering brand loyalty and advocacy. Additionally, 87% of consumers view user reviews and ratings as the most authentic form of interaction with brands. Ensuring consistent, authentic experiences is not just beneficial for building trust with individual consumers; it’s crucial for maintaining a positive brand image in the broader market.
Health and Wellness Are Here to Stay
Health and environmental consciousness remain a top priority for consumers in 2025. According to Innova Market Insights, 62% of U.S. consumers say they prioritize health and wellness when making food and beverage purchases, reinforcing the growing demand for products that align with their lifestyle choices. As consumer awareness of product ingredients and sourcing continues to rise, brands must adapt to meet these evolving expectations.
Recognizing this shift, CPG companies are diversifying their product lines—not just expanding their offerings but focusing on cleaner, healthier alternatives. This includes organic products, items with fewer preservatives or artificial ingredients, and functional foods designed to support overall well-being.
Ingredient transparency has become a crucial factor in purchasing decisions. Shoppers are scrutinizing labels more than ever, seeking clear, honest information about what’s in their products and where those ingredients come from. According to Progressive Grocer, consumers increasingly favor brands that embrace full transparency, from clean-label formulations to ethical sourcing practices. This shift has prompted many CPG companies to refine their labeling strategies, ensuring that customers can easily identify nutritional benefits, allergens, and sustainability claims. By prioritizing transparency alongside health-focused innovations, brands can foster deeper trust and long-term loyalty.
E-Commerce Isn’t Going Anywhere
In 2025, the retail industry is witnessing a continued shift towards e-Commerce, fundamentally altering how CPG companies approach their go-to-market strategies. The digital marketplace is not just an alternative to physical stores; it’s becoming the primary shopping venue for a growing number of consumers. In fact, according to a report by Winning Formulas for E-Commerce Growth, E-Commerce is forecasted to constitute 41% of global retail sales by 2027.
This shift is prompting CPG businesses to refine their online strategies vigorously. Particularly, there’s a focus on direct-to-consumer (DTC) models. In these models, brands bypass traditional retail channels to engage directly with customers through their online platforms. The DTC model is advantageous for CPG companies as it provides them with direct access to consumer data, which can be used to tailor marketing strategies, product development, and customer experiences more effectively.
What does this mean for the in-store experience? The rise of E-Commerce has dramatically reshaped retail, making customer experience more critical than ever for brick-and-mortar stores. With less margin for error, a customer’s first impression can determine whether they become a loyal shopper or turn to online alternatives. Unlike digital shopping, in-person retail is immediate and immersive, making it critical for stores to deliver exceptional service, engaging environments, and personalized interactions from the very first visit. At the same time, brick-and-mortar retailers must leverage data to create a seamless omnichannel experience—one that enhances customer loyalty by integrating the convenience of online shopping with the high-touch service of physical locations.
Sustainability and Environmental Impact Are Top of Mind
CPG companies are increasingly integrating sustainable practices throughout their operations, from sourcing raw materials to manufacturing and packaging. This shift is not merely a response to consumer demand but also a part of broader corporate responsibility initiatives. Sustainable practices include using renewable resources, reducing carbon footprints, and implementing eco-friendly manufacturing processes.
Packaging, in particular, has become a focal point, with companies investing in recyclable, biodegradable, or compostable materials to reduce plastic waste. According to a study conducted by McKinsey, over 60% of consumers said they would pay more for a product that had sustainable packaging, showing us that consumers are shifting their purchasing to products that prioritize sustainability. This alignment of brand values with those of eco-conscious consumers is creating a positive brand image and loyalty among a segment of the market that values environmental responsibility.
Initiatives for reusable packaging are also gaining momentum, with brands introducing systems where consumers can return packaging for reuse. These efforts are aimed at creating a closed-loop system, drastically reducing the need for single-use packaging. Such initiatives often involve collaborations between companies and specialized recycling firms to ensure the efficient collection, cleaning, and redistribution of packaging materials.
AI is In
Leveraging AI for product development and in-store marketing strategies is transforming the CPG sector in profound ways.
According to an article by Consumer Goods Technology, “Rapid advancements in AI and generative AI present valuable opportunities for CPG companies to refine business operations and increase their competitive advantage. By adopting AI, brands can significantly enhance their data analytics capabilities for stronger innovation, decision-making, and productivity.” However, it’s important to note that the effectiveness of AI in retail hinges on the quality and relevance of the data it utilizes.
Through the use of predictive analytics, AI is enhancing demand forecasting, enabling businesses to anticipate market needs with greater accuracy. This technology is also playing a pivotal role in product development, providing actionable insights that inform the creation of new products.
Additionally, AI-driven data analysis is revolutionizing production processes. Automation, fueled by AI, is not only reducing costs but also facilitating quicker adaptation to market changes. The ability to rapidly respond to evolving consumer preferences and market dynamics is proving indispensable for staying competitive in the fast-paced CPG industry.
The Importance of Testing, Even if It’s Trending
As consumer behavior evolves, CPG analytics are more essential than ever. With fewer chances to capture shopper attention, brands and retailers need insights to ensure that every touchpoint—from product placement to pricing strategies—is optimized for maximum impact. Retail data, point-of-sale (POS) insights, and promotion effectiveness metrics allow businesses to track shifting preferences and respond quickly to market disruptions.
The challenge? Not all data is created equal. Relying on outdated or incomplete data sources leads to misaligned strategies, missed sales opportunities, and lost market share. The best-performing CPG brands invest in robust analytics platforms that integrate multiple types of data—from demographics and purchase behavior to in-store execution and supply chain performance—to gain a 360-degree view of their consumers.
As a crucial tool for enhancing the shopper experience, data offers a comprehensive, objective understanding of consumer actions and preferences. Through data analysis using advanced analytics tools like our virtual shopper research platform, companies can gain insights into customer interactions with their products and services. Leveraging behavioral insights from diverse data sets and sources, businesses can make informed decisions that align with customer needs, culminating in a shopping experience that drives sales more efficiently.
Leave the Guesswork Behind; Partner With InContext
InContext stands at the forefront of retail, offering businesses the best of both worlds: deep insights into prevailing trends and the tools needed to ensure these trends align with their unique business goals. Striking the right balance between trend adoption and data-driven decision-making is crucial for shaping a successful business strategy. Trends, while offering a valuable snapshot of current consumer preferences and market dynamics, only tell part of the story. Data, on the other hand, provides a continuous, in-depth understanding of customer behavior and market shifts over time.
InContext harnesses the power of both, enabling businesses to develop agile, adaptable strategies that stay relevant in a constantly changing landscape while being firmly grounded in solid consumer insights.
Plus, at InContext, our AI solution sets itself apart by leveraging a vast customer data set of over 2 million virtual shopping trips. This extensive dataset offers a unique understanding of consumer behavior across various retail environments, providing metrics that are both specific and highly actionable. With these insights, our AI model can rapidly validate merchandising assumptions, delivering answers much quicker than traditional methods or even virtual studies. Our AI doesn’t just rely on broad generalizations—it leverages real-world, scenario-based data to predict outcomes accurately. This approach not only speeds up the decision-making process but also minimizes the costs associated with trial-and-error strategies. At InContext, we employ these AI tools to provide a more efficient and cost-effective way for businesses to understand what will resonate with their customers, helping them stay ahead of the competition and make data-driven decisions with confidence.
This balanced approach equips companies with the capability to stay ahead of the curve, offering products and services that not only resonate with their customers but also foster long-term success in an ever-evolving business environment.
With InContext’s expertise in understanding shopper behavior and providing actionable recommendations, businesses are poised to thrive beyond the transient nature of trends. This ensures sustained growth and success in a highly competitive market. If you’re looking to elevate the customer experience with confidence and precision, InContext is your go-to partner. Our data-driven strategies are tailored to guarantee long-term success in retail, making them an invaluable ally in navigating the complex retail landscape.
Contact InContext today to transform your retail strategy.
