Consumer Packaged Goods (CPGs) hit $10 billion in ecommerce sales in 2016, according to 1010Data.
That’s a whopping 36%+ growth from 2015.
While some companies excel on Amazon and other online channels, the CPG industry overall is still in the early stages of transitioning online.
Many CPG companies aren’t sure why or how their shoppers choose products online instead of walking into the nearest Walmart or Rite-Aid–but there’s a lot of value in understanding just that.
That’s where our 2017 CPG Consumer Survey comes in.
We surveyed shoppers across the following popular CPG categories to uncover data about where and why shoppers buy their CPG products:
- Health supplements
- Pet care
- Baby care
- Household cleaning
Rather than focusing on the top CPG brands and their methods, we chose to focus on the consumers who put them there. Read on for some quick takeaways, or jump right into the full survey.
CPG Online Growth Slow and Steady
Shoppers who purchased skin care products, pet care products, and health supplements were most likely to have purchased products online in the past 6 months.
Baby care buyers were more likely to frequent discount B&M retailers such as Target and big box clubs such as Costco.
Shoppers Love Amazon for Health Supplements & Pet Care Products
Considering half of online sales were on Amazon in 2016, it’s not difficult to imagine Amazon’s usurping.
These are the top categories where shoppers tend to purchase via Amazon:
- Health supplements: 13.7%
- Pet care: 11.2%
- Skincare: 11%
- Baby care: 8.8%
- Household cleaning: 5.1%
Baby Care Product Shoppers Least Likely to Subscribe Online
Pet food and health supplement shoppers are MOST likely out of all categories to subscribe to products online, while baby care shoppers are the most resistant to online subscriptions (90.7% not subscribing, no plans to subscribe).
Pet Care Shoppers Care Most About Brands
Features & performance were two big factors in shoppers’ decisions to buy–but not for pet care buyers. Their #1 reason to buy a particular pet care product was prior knowledge or experience with a brand.
TV Still a Driver of CPG Product Awareness
TV still a big driver of new product/brand awareness for CPGs, although there are exceptions across particular categories. For instance:
- Family/friend recommendations won out for baby care
- Online research rules for health supplement shoppers
The CPG industry is a pretty slow moving ship because of the way people are conditioned to shop. While specific verticals are accelerated on Amazon (supplements and pet food), others lag behind (baby care).
At the end of the day, it’s important for all CPG brands to stay ahead of the shopper curve, and invest in an online strategy that makes sense for their brand and audience.