The Coronavirus Impact on CPG

The Coronavirus Impact on CPG

April 1, 2020 by investor

Hello, this is Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing.

The Coronavirus pandemic impacts many parts of the economy including consumer product goods.

For the consumer-product-goods space, we’ll see changes in the following ways:

Many CPG companies will see greater demand for their product as the shutdown of restaurants shifts consumers to grocery stores.

Those who provide disinfectants, protective clothing and other tools to fight the virus, are under heavy demand.

Shelf-stable products will be more important than perishable goods.

Due to outages of a customer’s preferred brands, customers will try new products because they are available, and in some cases, the only item left on the shelf to be purchased.

Wellness products including nutritional supplements, will see strong growth as consumers weather the pandemic.

Supply chains in general, are under pressure as the population moves from restaurants to the grocery store as their primary source of food.

Retailers are delaying category reviews and store-shelf resets as they have their hands full just keeping current products on the shelf.  This will delay new product introductions.

In general, consumers are moving to home delivery and to direct-to-consumer products, where possible. 

CPG companies should consider shifting into the direct-to-consumer and eCommerce distribution channels.


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Disclaimer:
Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.

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