You’ve likely heard me say countless times that a “great product is only the entry fee to compete in today’s functional CPG market”, but what’s at the heart of that statement? The hard truth is that there has never been as many functional CPG brands and products as there are today, so if you think the answer to winning in today’s market is adding more product features than you’re in trouble.

The often-cited low barriers to entry within the supplement industry are starting to disappear, as the cost of starting a brand, growing a brand, and sustaining brand equity have increased substantially in the last few years.

With margin being squeezed in every direction, something must give to satisfy Americans that have been drunk on low prices for decades. I believe that contract manufacturers are peering through a massive window of opportunity. The internet provides them with the ability to go direct-to-consumer and remove various intermediaries (or middlemen). Toss in the power of celebrities and the consumer-to-manufacturer (C2M) model could be extremely special.

As more customer cohorts shop at dollar stores, trade downs will naturally happen across a broader range of CPG categories. This will show that not all aspects of the “race to the bottom” is negative across the functional food, functional beverage, and nutritional supplement categories. Brands positioned in each of those functional CPG categories should explore dollar stores in their sales channel strategy as consumers shift spending with the upcoming recession. So, if consumers are breaking down dated channel beliefs, why shouldn’t your functional CPG brand?

Wellness is a modern word with ancient roots. As a modern concept, wellness gained popularity beginning in the 1950s, when subject matter experts largely shaped the way we conceptualize and talk about wellness today. Throughout the past seven decades, wellness has morphed into a multi-dimensional trillion dollar market…one that could unlock immense opportunities for functional CPG brands.

Internet wellness challenges are perfect digestible SMART goals that promote action. They build new habits, identities, and communities.

It probably doesn’t need repeated, but Nike is the heavyweight champion of sports brands. There are only a few brands that achieve ubiquity in popular culture like Nike. No matter where we turn, it feels like there’s a swoosh just around the corner, right? So, why do I think Nike is giving every sports nutrition brand a masterclass on their needed evolution over the next 5-7 years?

The importance of developing functional CPG products based on customer needs is a no brainer, yet too many brand owners start their perspective, instead of a customer perspective, when coming up with new products. This is a major problem and one that can be fixed by implementing a demand side innovation strategy.

New innovations are impacting the CPG business landscape at a substantial rate, and businesses need to move swiftly to keep pace as the market evolves. That’s why you must consider putting yourself out of business before someone else will.

CPG brands need to continue moving towards meeting the consumer on their own terms. Consumers are becoming more demanding than ever, so CPG brands need to develop a contextualized and personalized strategy to stay relevant. Instead of the saying content is king, maybe we should be saying context is king or at least that’s what seems to be upon us.

CPG brands create scarcity to drive sales. Constricting supply amplifies word of mouth. Drop culture has moved from fashion to consumer packaged goods.

The old business sequence of building products first and audiences later will become obsolete. The creators of today will become the biggest brands of tomorrow.