Skai 2025 Industry Preview: CPG Trends 

In today’s fast-moving landscape, knowing what trends are shaping your industry is essential for more than just market awareness—it helps you stay connected to what’s influencing your consumers. Whether or not these trends seem directly relevant to your current strategy, if they’re shifting the industry, they’re almost certainly affecting your audience’s decisions, expectations, and values.

At Skai, we’re here to equip you with the insights and tools to make these connections work for you. Beyond campaign management, we’re focused on empowering our clients to navigate and anticipate industry shifts effectively so they can thrive amidst change. In this new Skai 2025 Industry Preview series, we’re diving into the critical industry trends expected to make a mark in 2025, giving you the knowledge you need to stay ahead and connect meaningfully with your audience.

Today, we preview the 2025 trends shaping the CPG industry.

The consumer packaged goods (CPG) sector has seen considerable evolution over the last few years, driven by changes in consumer behavior and a shift towards digital engagement. Following a post-pandemic surge, the industry has adjusted to varying economic pressures and an increased emphasis on value as inflation remains a concern. Digital ad spending in CPG is set to hit nearly $50 billion this year, underscoring its commitment to maintaining consumer connection despite recent economic volatility​.

CPG brands have also gravitated towards display and mobile advertising over traditional channels, reflecting a broader digital pivot. These brands are especially reliant on mobile, with around 69% of CPG’s digital ad spend going to mobile platforms, including social media​. This digital-first approach sets the stage for even more sophisticated targeting and engagement strategies as CPG adapts to changing consumer expectations and the competitive landscape.

Now, let’s explore how these shifts will influence CPG trends in 2025, from brand storytelling to packaging innovations and loyalty programs.

Consumer demand for sustainability

As consumers become increasingly eco-conscious, the demand for sustainable practices in CPG is rising. Most shoppers now prioritize brands that demonstrate a clear commitment to environmental responsibility. This shift influences CPG companies to adopt recyclable, compostable, or minimalist packaging and spotlight sustainable sourcing and manufacturing practices. Such initiatives align with the values of younger consumers, who are incredibly motivated to support brands that share their environmental values. Toiletries and cosmetics are driving much of this growth, with digital ad spending expected to increase by over 19%.

CPG brands are responding by highlighting these sustainability efforts across digital channels, mainly through retail media and social media advertising. This strategic focus aligns well with consumer expectations. Also, it leverages the industry’s preference for mobile advertising—69.3% of CPG’s digital ad budgets go to mobile, compared to a 65.9% average across industries​. By communicating sustainability in ads, especially on mobile devices, brands are meeting consumers where they are and enhancing their connection to eco-friendly shoppers.

Action Items for CPG Marketers:

• Run mobile-friendly display and social ads focusing on sustainable product features, from eco-friendly packaging to ethically sourced ingredients.
• Utilize retail media to highlight sustainable product attributes directly on e-commerce platforms, targeting consumers actively shopping for green products.
• Develop omnichannel campaigns to reinforce sustainability messaging across social, mobile, and in-store experiences.

Increased investment in digital-first packaging technology

Packaging is evolving beyond its traditional role to become a digital touchpoint for brand interaction. In 2025, packaging innovations like QR codes, NFC, and RFID tags will allow brands to provide added product information, offer promotions, and share brand stories through a simple scan. This interactivity aligns with the preferences of tech-savvy consumers and meets their desire for transparency in product content and sourcing. Such features have become increasingly popular as brands seek to engage consumers through additional digital experiences at the product level.

Sustainable packaging is also gaining traction, with brands adopting materials that reduce waste and convey an eco-friendly image. CPG spending on display advertising—where these innovations are often highlighted—is projected to grow by 17.9% this year, showing a clear shift toward interactive and visually impactful campaigns. Brands also use these ads to communicate their commitment to minimalism and environmental sustainability, particularly within the highly competitive toiletries, cosmetics, and beverage segments.

Action Items for CPG Marketers:

• Create paid search campaigns focused on keywords emphasizing sustainable and interactive packaging to attract eco-conscious shoppers.
• Develop social media ads that educate consumers on using digital packaging elements, such as QR codes, to access exclusive content or product details.
• Use retail media to showcase packaging innovations and eco-friendly materials on product listings, capturing consumer interest at purchase.

Omnichannel shopping experiences for consistency

Omnichannel consistency will be essential for delivering seamless consumer experiences across online and offline environments in 2025. With a significant portion of consumers expecting unified branding across touchpoints, CPG brands focus on bridging gaps between digital ads and in-store experiences. The industry will spend nearly $50 billion on digital ads this year, with a substantial portion directed toward creating cohesive brand interactions across platforms​. 

This strategy aims to boost customer satisfaction by ensuring they encounter consistent promotions, product information, and messaging regardless of where they shop.CPG brands can enhance consumer loyalty by creating campaigns that connect digital ads to in-store offers, aligning promotional strategies across all interaction points.

Action Items for CPG Marketers:

• Use geotargeted paid search campaigns to drive foot traffic by promoting in-store deals to nearby mobile users.
• Run social ads highlighting in-store promotions, emphasizing a seamless transition from online browsing to in-person shopping.
• Integrate retail media with in-store promotions to create a unified shopping experience, reinforcing brand loyalty and trust.

Personalized loyalty programs for consumer retention

Personalized loyalty programs have become a core strategy for CPG brands aiming to deepen customer relationships. In 2025, data-driven loyalty programs that tailor rewards and incentives to individual preferences are expected to increase retention rates and drive repeat purchases. eMarketer notes that brands are adopting more sophisticated digital tools to analyze customer preferences, enabling them to offer loyalty rewards that feel both relevant and personalized. This trend allows brands to stand out in the competitive CPG landscape, where consumer trust and brand affinity are critical.

Integrating loyalty programs with digital ad campaigns on platforms like social media and retail enables brands to directly promote these rewards to high-value customers. By aligning loyalty initiatives with advertising strategies, brands can maximize the impact of their incentives, particularly for consumers who already exhibit brand loyalty.

Action Items for CPG Marketers:

• Target loyalty-focused search terms in paid search ads to boost the visibility of loyalty programs among engaged shoppers.
• Use social advertising to promote personalized rewards, showcasing success stories and exclusive offers that appeal to current and potential loyalty program members.
• Employ retail media to promote loyalty incentives directly within product listings, encouraging sign-ups at the point of purchase.

Influencer partnerships and social commerce for authentic connections

Influencer marketing and social commerce are expected to grow significantly in 2025 as consumers increasingly look to trusted voices for product recommendations. Platforms like Instagram and TikTok have transformed how CPG brands reach consumers, with influencers now acting as influential advocates who lend authenticity to marketing efforts. This strategy resonates particularly well with Gen Z and millennial shoppers, who value relatable and genuine product endorsements over traditional ads. CPG brands allocate a substantial portion of their social budgets to mobile-friendly platforms where these audiences spend most of their time​.

Social commerce, which allows for direct purchases within social apps, is another growing area. It enables consumers to browse, discover, and buy without leaving the platform. By combining influencer partnerships with social commerce features, CPG brands can create a seamless path from inspiration to purchase, fostering a more integrated shopping experience that resonates with digitally engaged consumers.

Action Items for CPG Marketers:

• Partner with influencers who align with brand values and resonate with target demographics to drive authentic brand connections.
• Leverage social ads to boost influencer content, increasing reach and engagement among followers.
• Enable social commerce features on platforms like Instagram to allow consumers to purchase products directly, enhancing convenience and aligning with mobile shopping behaviors.

Conclusion: Lead with Innovation

As we head into 2025, CPG marketing is positioned for an exciting transformation. Consumers prioritize sustainability, personalization, and seamless shopping experiences, and brands invest heavily in digital to meet these demands. The strategies covered here—from sustainability-driven branding to omnichannel integration—represent key trends shaping the industry’s future. In an increasingly digital-first world, the brands that understand and adapt to these shifts will succeed.

Now is the time to lead with innovation. The CPG landscape is more competitive than ever, and standing out requires bold, data-driven steps in digital engagement. Relying on traditional methods is no longer enough; today’s CPG leaders are those willing to harness new technologies, engage consumers authentically, and create truly memorable brand experiences. To thrive in this environment, let innovation guide every decision, from packaging design to loyalty programs to social commerce.

We hope this post has provided valuable insights and sparked some fresh ideas. Keep an eye out for upcoming installments in the Skai 2025 Industry Preview series as we continue to explore trends across industries. There is plenty more to come as we dive deeper into the strategies shaping a successful year ahead.