Health and Wellness: What Makes CPG Brands Grow Fast?

A 2022 report revealed that consumers assess CPG products using “six dimensions: health, fitness, nutrition, appearance, sleep, and mindfulness.”

And the dissatisfaction level among CPG consumers is significant with about 40% demanding more from brands. Since the CPG market is so competitive, achieving rapid growth requires strategic planning, innovation, and a deep understanding of consumer behavior.

It is crucial to identify the key factors that contribute to accelerated growth in the CPG landscape. Here are some that you should know. 

Compelling branding and positioning

Fast-growing CPG brands understand the power of a strong brand identity. Successful companies invest in compelling branding that resonates with their target audience, communicates their unique value proposition, and differentiates them from competitors.

If you want to create a strong foundation for your brand’s growth, you need to focus on crafting a clear and memorable brand story, visual identity, and messaging that aligns with consumer aspirations.

Dollar Shave Club disrupted the shaving industry with its fun and relatable branding. By positioning itself as an affordable and convenient solution for men’s grooming needs, the brand captured the attention of consumers who were tired of expensive razor blades and complex purchasing processes.

Dollar Shave Club’s compelling branding, highlighted through its witty advertisements, and the appealing subscription-based model together helped the brand achieve rapid growth and ultimately led to its acquisition by Unilever for $1 billion.

Product differentiation and innovation

Standing out in a crowded market requires innovative products that meet consumer needs and desires. Offering unique features, addressing consumer needs, and staying ahead of the competition allow you to capture market share faster than usual

Fast-growing CPG brands focus on product differentiation, whether through unique features, high-quality ingredients, sustainability initiatives, or disruptive packaging.

For instance, HelloFresh is a meal kit delivery service that differentiated itself in the crowded food industry by offering convenience, variety, and flexibility. With pre-portioned ingredients and step-by-step recipes, the brand simplified the cooking process for busy individuals and families.

It provides people with a solution that combines the convenience of home delivery with the joy of cooking and exploring new recipes. This is primarily why HelloFresh experienced rapid growth and established itself as a leader in the meal kit market even though Plated was launched years before.

The bottom line is that by offering something distinct and valuable to consumers, you can also attract attention, drive word-of-mouth marketing, and cultivate loyal customers.

Effective distribution and retail partnerships

It is practically impossible to grow rapidly in the CPG space if your products don’t reach the right consumers. And that’s only possible through efficient distribution channels.

Building strong partnerships with retailers and distributors that align with your brand values and target audience is crucial. You need to secure strategic shelf placements, leverage e-commerce platforms, and optimize supply chain logistics to expand your reach and access new markets efficiently.

For example, P&G is a global consumer goods company that has achieved rapid growth through its effective distribution and strong retail partnerships. You will find its products like the Tide detergent and Gillette razors to be widely available in various retail channels – whether it is supermarkets, drugstores, or online platforms.

Sometimes, the availability of a product is what makes people choose it over others. This is simply because it is more convenient to be loyal to an available product even if it is average than to buy one that is excellent but isn’t easy to access.

If you want your CPG brand to survive in this fiercely competitive space, make sure you maintain a widespread product availability by tapping into your strategic partnerships with retailers to maximize your reach and drive sales growth.

Embracing digital

In today’s digital age, fast-growing CPG brands recognize the importance of a robust online presence. You can embrace digital channels, such as eCommerce platforms, social media, and influencer marketing to engage directly with consumers, build brand awareness, and drive sales.

But one advantage that countless brands ignore is digital’s ability to leverage data-driven insights for refining products and marketing strategies, targeting specific consumer segments, and creating personalized experiences that resonate with their audience.

Take Nike’s NikeID for example. The program allows Nike’s customers to design and personalize their own shoes online. They can customize the color, materials, and even text on their shoes, which gives them a sense of empowerment. When customers create unique products that reflect their style and preferences, they feel closer to the brand.

Now that’s a unique way of embracing digital. Having this kind of approach in the online vertical of your business can enhance the emotional connection between you and your customers, which is at the center of any business’s growth.

Just like Nike focused on personalization to maintain a strong position in the competitive sportswear market, you can also use customer data to offer extra value to your customers.

Consumer-centric marketing and engagement

Customers admit that the current wellness brands available in the market don’t fully address their needs. And successful CPG brands are successful because they prioritize understanding their target consumers deeply.

As a CPG brand, you need to conduct market research, analyze consumer behavior, and gather feedback to inform your marketing efforts. You need to invest time in creating the most suitable consumer-centric campaigns that showcase how your products address your customers’ pain points and enhance their lives.

Dove is known for its “Real Beauty” campaign. The same campaign allowed it to position itself as a brand that celebrates diversity and challenges beauty standards. By promoting a positive body image and inclusivity, Dove built a brand that resonates with consumers, particularly women.

This positioning not only fostered brand loyalty but also enabled Dove to expand its product range to include body washes, shampoos, and skincare, resulting in significant growth over the years.

As part of your growth strategy, consider engaging with your audience through social media, email marketing, and customer loyalty programs so that you can foster long-term relationships and gradually drive brand advocacy.

Continuous innovation and adaptability

Millennials are more than 50% likely to focus on prioritizing their health. Beyond Meat understood this aspiration and revolutionized the CPG industry by offering plant-based meat alternatives that closely resemble the taste and texture of traditional meat products.

It focused on innovation and creating products that appeal to health-conscious consumers and those seeking more sustainable food choices. Beyond Meat has experienced rapid growth due to its differentiation, which lies in its ability to provide a meat-like experience without the environmental and ethical concerns associated with conventional meat production.

Fast-growing CPG brands understand the importance of continuous innovation and adapting to a changing market. They stay abreast of emerging trends, consumer preferences, and technological advancements.

If you want to launch your CPG brand, be prepared to Invest in research and development to introduce new products, improve existing offerings, or explore new market segments. Be agile and willing to pivot when necessary to stay ahead of the competition and meet evolving consumer demands.

Building customer loyalty and advocacy through personalization

One of the most powerful drivers of fast growth for CPG brands is the ability to build customer loyalty and advocacy. Let’s talk about a big name in the CPG industry – Starbucks.

Starbucks has created a culture of personalization by allowing customers to customize their orders. From the choice of coffee blend to the selection of milk, syrup, and toppings, Starbucks offers an extensive range of customization options.

This kind of personalization not only caters to individual tastes but also creates a sense of ownership and exclusivity – a sense of “this is my blend.” Starbucks makes customers feel like their drinks are uniquely crafted for them. This allows the brand to foster a strong sense of loyalty and advocacy, leading to repeat business and word-of-mouth referrals.

Almost 50% of customers have a strong preference for personalization. And as a brand, you need to nurture relationships with your customers by delivering great products and exceptional customer service to create personalized experiences.

Encourage customer reviews and testimonials to build trust and social proof as well as implement loyalty programs, referral incentives, and exclusive offers to reward and retain loyal customers who become brand ambassadors. They are the ones who can spread the word and drive growth for your brand.

The bottom line

Remember that successful branding requires a holistic approach. Understanding individual customer preferences, offering tailored experiences, and empowering customers to personalize their purchases can create a strong emotional connection with your audience. This connection can then lead to increased customer satisfaction, repeat business, and positive word-of-mouth, ultimately driving the brand’s growth and success.

But it is easier said than done! Establishing a CPG brand in an already crowded market space requires a ton of strategizing and planning. Working with a professional branding agency can make your job significantly less stressful. Aventive Studios’ branding experts have helped countless health and wellness brands to identify the right strategy for them and create an impact in their respective markets. And we can do it for you, too! Get in touch with us to know more.