How 2020 Has Shaped Up for CPG (So Far)

ClearCut Analytics tracks the e-commerce performance of dozens of categories of consumer packaged goods.

Now, we’re going to look back at 2020 to date, and let our data tell the story. How is this unprecedented year shaping up?

What’s selling well and what isn’t? And what can the performances of different categories tell us about the state of e-commerce as a whole?

  • E-Commerce Explosion in Essentials: Online revenues for household essentials such as Deodorant, Shampoo & Conditioner, and Soaps & Body Wash have seen YoY revenues grow by 52%, 54%, and 70% respectively. The household essentials market segment has seen the highest YoY growth of any segment studied.
  • Surge in Supplements: As health concerns continue to sit at the front of every American’s mind, vitamins and minerals are seeing strong, persistent increases in demand. Categories that have experienced a sustained boon, starting in March 2020, include Multivitamins, Letter Vitamins, Minerals, Probiotics and Omegas. 
  • Falling Prices: Average prices have fallen YoY for nearly every category observed. In fact, the average price decreased in nine out of 10 of the highest-grossing categories ClearCut tracks on Amazon. The highest average price decreases were observed in the Soaps & Body Wash category (-9% YoY), followed by Multivitamins (-6% YoY).
  • Souring on MCT: The lone dark spot in an otherwise booming environment, MCT oil revenue has declined by 25% YoY. It has also struggled with a 21% decrease in units sold.

What does mean for the CPG industry?

  • Demand for Essential Goods and Popular Health Products is Here to Stay: The persistence of the COVID-19 pandemic means that a large subset of shoppers remain wary of online shopping, while others merely became accustomed to the convenience of online shopping. Relatedly, increased demand for supplements continues. Many believe that this digital transformation is part of a wider cultural shift to online ordering, especially for “unexciting” essentials.
  • Increased Options Lowering Prices: Increased competition on e-commerce sites and tightening consumer budgets are leading a movement towards lower priced products across e-commerce sites. As more products continue to debut online, competition may continue to drive down prices.

What is your brand doing to stay on top of e-commerce trends and navigate the new retail environment?