Key trends in consumer goods market in 2023

August 02, 2023 | 09:50
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Advanced technological development has been driving the development of the consumer goods industry to a new level, bringing more value, personalisation, and connectivity to create a better experience.

On July 31, ManpowerGroup Vietnam organised the Consumer Goods World of Work 2023 Outlook webinar to provide an update on the key trends that significantly impact the industry's development and human resource management.

Key trends in consumer goods market in 2023

The event drew the participation of Hoang My Huong, managing director at Oxford MindPower and former Associate Marketing director at Abbott Nutrition, and Diep Le (Kim), team leader of Permanent Recruitment, Executive Search and Consulting Services, Consumer Goods, Retail, Pharma, and Education at ManpowerGroup Vietnam.

According to ManpowerGroup's Consumer Goods World of Work 2023 Outlook, brands are adopting omnichannel and direct-to-customer business models to strengthen customer relationships, improve the digital experience, and leverage their competitive advantages.

A report by KPMG indicated that the direct selling model's profit margin is projected to increase by up to 40 per cent if traditional sales agents are omitted, and it is projected to reach a growth milestone of more than 20 per cent by 2025, creating numerous development and employment opportunities.

In light of the rapid advancement of digital technology, businesses must actively optimise and diversify their consumer engagement strategies, focusing on enhancing the customer's digital experience.

According to Qualtrics, companies could lose $4.7 trillion annually if they fail to meet the digital experience expectations of their customers. Additionally, Gartner predicts that by 2025, the top 50 consumer goods manufacturers will have invested in a brand app that uses AI and embedded digital technology in the product.

According to Huong, with the current hustle and bustle of life, consumers tend to expect fast and convenient forms of purchasing that facilitate life in the express lane.

Key trends in consumer goods market in 2023

Crunchbase's report revealed that in response to this demand, large retailers such as Amazon and Albertson's are piloting a checkout-free shopping feature that uses advanced sensors, cameras, and online payments, enabling customers to bypass the traditional checkout lines.

Furthermore, McKinsey anticipates that e-commerce will continue to grow in categories once dominated by brick-and-mortar retail. Fuelled by evolving consumer expectations, increased competition, and technological advancements, e-commerce could account for up to 18 to 30 per cent of grocery sales in many advanced markets by 2030, demonstrating the online business's high growth potential.

A growing number of retail locations are going dark to address changes in consumer behaviour. For example, traditional retail locations are becoming distribution centres, and some restaurants are eliminating in-person dining rooms.

Sustainable development is a current imperative in the enterprise development process. Huong stated, "Sustainable development is a significant objective in the consumer goods industry, to create practical value for consumers, businesses, society, and the environment."

Key trends in consumer goods market in 2023

"According to a report by Deloitte, 97 per cent of industry leaders agree that becoming more environmentally sustainable is a top priority, and 54 per cent say sustainability is the most important innovation opportunity for the industry," she emphasised.

“Environmental, social, and governance improvements are occurring globally, targeting positive change. In 2021, roughly 1,200 green startups that are focused on disruptive business models to fight climate change raised a record $90 billion, putting additional pressure on established brands to increase their sustainable development efforts,” Huong continued.

Along with its remarkable growth, the consumer goods industry is experiencing a serious talent shortage due to the rising expectations of employees.

Kim shared, "The consumer goods industry has confronted numerous challenges in recent years. According to ManpowerGroup's Employment Outlook Survey for Q2 2023, talent scarcity has reached a historic high, with 77 per cent of global consumer goods employers saying they have encountered difficulties finding the skilled talent they need."

She stated that despite repelling a multitude of challenges in terms of human resources, the consumer goods industry's labour market has still witnessed positive signs.

In addition, the report indicated that the global employment outlook for the consumer goods industry would see an 18 per cent increase, up 11 per cent from the previous quarter and a decline of just 6 per cent from the previous year.

With the present technological advancement, the demand for human resources with digital and green skills will increase in the near future, highlighting the importance of upskilling and reskilling employees.

To attract and retain talent over the long term, businesses must devise a critical strategy to improve the skills of their employees, enhance productivity, and promote the significance of the employee value proposition.

Manpower Vietnam is the largest global staffing and recruitment company in Vietnam, operating in the country since 2008. It is the first wholly foreign-invested company to provide recruitment, staffing, and outsourcing services that has been licensed by the Ministry of Labour, Invalids and Social Affairs since 2008.

It is a part of ManpowerGroup – a prominent workforce expert since 2008. Every day, all around the world, hundreds of thousands of people go to work because of Manpower, and hundreds of thousands of companies thrive because of the people the group finds for them.

With offices in over 75 countries and more than 70 years of history, Manpower is a leader in contingent and permanent staffing, providing organisations of all sizes with a continuum of staffing solutions to enhance business agility and competitiveness. With its thorough understanding of staffing trends and its deep pool of highly qualified candidates, Manpower can deliver talent by matching the right individual to the right job faster and with better business results.

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