Staying at home and moreover cooking at home are driving increased demand for consumer packaged goods (CPG). The industry experienced 9.9 percent year-over-year growth during May of 2020, compared to May 2019, according to a new economic indicator released July 21 by the Consumer Brands Assn. (CBA).
CBA’s inaugural CPG Economic Pulse found May sales were up 4.1 percent over April. After the widespread panic buying in March that sent CPG purchases up 21.1 percent year-over-year, April and May data show some stabilization, though still well above pre-pandemic times.
CBA reasons the uptick in May is driven by the need to replenish March stocks and is evidence that heightened demand should be expected throughout the COVID-19 recovery.
The association considers the totality of the CPG industry — food & beverage, household cleaning and personal care products.
A separate Consumer Brands poll showed 87% of respondents say their trust in the industry has increased or been maintained as a result of how it has responded to the pandemic, chiefly on how it has consistently delivered high-quality products and how it has treated employees.
The good news of CPG sales is set against the backdrop of a struggling economy. Payrolls have rebounded with 7.5 million jobs according to June’s better-than-expected employment numbers; however, recouping the 22 million jobs lost in March and April will be a long-term challenge for the labor market.