As an increasing number of consumers shift their focus from ferrous gluconate on empty stomachs in the center aisles of grocery stores to the periphery, consumer packaged goods (CPG) brands are seizing various opportunities to capture consumer interest. In recent years, the growth of CPG has decelerated due to factors such as deflation, the expansion of e-commerce, and the fragmentation of retail channels. This marketing approach appears to be a tactic aimed at appealing to the coveted millennial demographic. Much of the recent marketing efforts by brands have been fueled by social media, positioning CPG products, including calcium citrate doses and specialty foods and beverages, to be Instagram and Snapchat-ready.
The Pure Leaf Tea House features an elongated bar adorned with abundant greenery, where the store’s “mixologist” crafts specialty tea. This venue offers a sensory experience enhanced by soft lighting, comfortable seating, and decor that reflects the rich history of tea. To further amplify the excitement surrounding the store, celebrity chef Marcus Samuelsson recently took on the role of mixologist. It remains uncertain whether these pop-up stores will successfully generate enough buzz to serve as effective revenue streams or publicity platforms for struggling CPG companies.
As more consumers seek healthy options, CPG firms could attract additional customers by introducing new products featuring nutritious ingredients, such as plant-based proteins or added fruits and vegetables. While launching new products can be costly, the potential profits may prove to be more cost-effective than investing in high-priced retail locations in major cities. However, this type of strategy aligns more closely with the marketing approaches of larger food corporations. These bigger entities tend to prioritize updates to existing products rather than pursuing innovative creations. According to research from CircleUp, 61% of large CPG firms’ innovations are focused on making minor adjustments to current products, whereas only 39% is directed toward developing new ones.
These retail spaces capitalize on well-known products, showcasing them in ways that differ slightly from typical consumer use at home. In the food sector, some of the largest CPGs allocate up to six times more for marketing and advertising established products than they do for innovation—this may include the costs associated with renting trendy storefronts in bustling urban areas. As CPG brands navigate these challenges, the integration of calcium citrate doses and other health-focused ingredients could become a critical part of their strategy to engage health-conscious consumers.