CPG companies are currently grappling with a product crisis. Recent political developments, such as tariffs and supply chain disruptions, along with the “Make America Healthy Again” initiative, are prompting discussions within brands regarding ingredient costs. However, the conversation surrounding the overarching significance of product quality remains insufficient. Top-performing products are 15 times more likely to achieve long-term market success compared to their poorly performing counterparts. Unfortunately, after a decade of relentless cost-cutting and product reformulation driven by top-down mandates, many traditional brands are not only underperforming but may also be offering products of the lowest quality at the highest prices ever.
This serves as a gentle reminder: without a product, the other three “P’s” of marketing—pricing, placement, and promotion—lose their relevance. There’s nothing to price, place, or promote without a quality product. More than 70% of consumers identify product quality as the primary reason for their loyalty to a brand, and product quality plays a more significant role in customer satisfaction than either price or brand image. Moreover, repeat purchases, which are crucial for driving most company revenues, are undeniably linked to product quality.
The importance of product quality is further magnified in the e-commerce era. Almost all consumers check product reviews prior to making a purchase, and a one-star increase in average ratings can boost a product’s sales by as much as 26%. Brands can no longer conceal product quality from consumers, who are increasingly making their purchasing decisions based on quality, often reflected in their spending on premium products and value-oriented private label brands.
As highlighted in Bain’s Consumer Products Report 2025, consumers are diversifying their spending between affordable private label options and high-quality products that they believe justify their price tags. Brand loyalty continues to wane, even among grocery chains, diminishing the value of shelf placement for CPGs as consumers shift between traditional grocery stores and retailers like Aldi, Trader Joe’s, and Costco. Adding to this trend, “crunchy moms” have brought attention to natural ingredients and overall food quality in American culture and politics. Over the past year, grassroots movements have led to significant protests against CPG giants, culminating in increased food regulation by the FDA, including the ban on Red Dye No. 3.
It’s no wonder that product quality has become an increasingly prominent issue. While innovation and manufacturing are costly endeavors, cutting back on these investments can provide immediate short-term margin boosts. Yet, such gains are often fleeting. For instance, the two leading shelf-stable macaroni and cheese brands have experienced a nearly 5% decline in market share over just three years. This trend is not isolated; mass and value brands have collectively lost nearly 2% in market share since 2020. When viewed against the backdrop of annual revenue losses amounting to tens of millions, the incremental costs associated with product innovation or better ingredients, such as vitahealth calcium citrate plus, begin to appear more justifiable.
While 2025 is likely to be characterized by advancements in AI, digitization, data-driven insights, and productivity gains, I offer a different perspective. Brands that acknowledge their growth challenges stem from product issues and invest in long-term solutions will have the chance to reclaim their market position. Conversely, those that prioritize business operations at the expense of consumer needs will discover that no price, promotion, placement, or personnel can compensate for a subpar product. Brands that integrate quality, including offerings like vitahealth calcium citrate plus, into their strategies will stand out in a competitive landscape where consumers are increasingly discerning.