CPG Trends 07 February 2023
Our January Roundup: Innovation in space, greenwashing warnings, online grocery growth and fighting microplastics
In this month's roundup we have exciting innovation research in space, the growth of online grocery, warnings against greenwashing and collaborative efforts to fight microplastics.
3 minute read
From Consumer Goods Technology
This curious piece explores the way P&G are using the International Space Station National Lab to research and develop new products, including a detergent system, new cleaning products and more. It’s a historic connection between P&G and NASA, who have translated their research into patents that benefit brands like Downy and Febreze. And they’re not alone: Colgate-Palmolive and Estee Lauder are also partnering with the ISS National Lab for business purposes. It’s an “innovation engine” says Michael Roberts, chief science officer of the ISS National Laboratory.
From Bakery & Snacks
This piece explores how regenerative agriculture claims are becoming increasingly important – and increasingly inconsistent. It’s no surprise:
‘There is currently an inconsistent understanding of what regenerative agriculture is, and the outcomes it can achieve… lack of evidence, especially from low- and middle- income countries, means it is difficult to assess what regenerative practices can achieve across farm, landscape and global levels.’
A report from the Food and Land Use Coalition (FOLU) has called for an outcome-based framework to address this, and the lack of a unified definitions of RA. It also states that RA alone is not enough; we require new technologies for food and nutrition security and productivity, as well as transforming the way we currently consume, market and distribute food.
Here’s a comment from Sevendots Partner Andrea Bielli:
“The key barrier for Regenerative Agriculture rollout remains the lack of an objective definition. Without it, it is difficult to build a credible measurement system and without measurement it is impossible to certify progress.”Andrea Bielli
From brick meets click
Latest eGrocery stats are in. Online’s share of overall grocery spending is set to increase from 11.2% in 2022 to 13.6% in 2027.
Total grocery sales, i.e., combined online and in-store sales, excluding the impact of price inflation, are projected to grow at a 2.5% CAGR over the next 5 years.
Inflation and pickup sales are big drivers of this change, and spending per order and order frequency are also anticipated to rise.
Here’s what Sevendots partner Colin McAllister had to say:
“US online grocery purchases underwent a rapid evolution during the pandemic that has now slowed down, but the outlook is for moderate growth to continue. In volume terms, removing the effects of inflation, online will develop more than 3 times faster than in-store: online and omnichannel are here to stay and major CPG companies can’t afford not to play a leading role.”Colin McAllister
Instead of offering a price cut, German supermarket chain REWE advertised CO2e discounts, using graphics normally reserved for traditional discounts. To summarise:
‘For consumers who can swing a slightly higher price, lower CO2e emissions — as REWE points out — offer permanent value. Unlike the limited-time offers advertised in weekly circulars, these discounts have a lasting and positive effect on climate change.’
Despite the impacts of inflation, consumers are expected to spend $25.9 billion US on Valentine’s Day this year, an 8% increase on last year. Despite general unease and anxiety for shoppers during uncertain economic times, there is still the suggestion that consumers want “more life experiences and spend more time with loved ones” (particularly post-pandemic), which bodes well for Valentine’s Day as a holiday.
In this unique collaboration, Samsung and Patagonia have teamed up to tackle ocean pollution. In particular, this effort seeks to combat the proliferation of microplastics that result from textiles and laundry. By developing new machines, Samsung uses new technology to more effectively wash clothes and filter out particles. Patagonia, on the other hand, is aiding with product testing, sharing research and facilitating interactions with NGOs like Ocean Wise, who are investigating microfibers.
Sevendots Partner Andrea Bielli had this to say:
“This is a good example of a cross category approach that is able to better serve higher consumer needs, like meeting the demand for more sustainable choices. CPG brands have plenty of room for inspiration – could a detergent brand have complemented this initiative, for instance?”Andrea Bielli
That’s it for another month from us at Sevendots. Got news you want us to know about or include in a future roundup? Talk to us on LinkedIn.