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Trends in CPG

3 min read  Let’s look at some trends in CPG in this Post-COVID World.

The consumer packaged goods sector consists of companies that manufacture and sell products for consumer use. Examples of consumer packaged goods include mainly food and beverages, but also cosmetics and cleaning products. Solid trends are being seen in the CPG market today, many of which are being derived out of COVID-related necessities. COVID has changed the way we look at, interact with, and, most importantly, shop in our society today.

It is no longer enough for a product to taste good; it must also fill a specific need. We have new drives and values, and everything we purchase should align with this in one way or another. This desire for more has led to an industry-wide focus on health, wellness, and function.

Functional Beverages

The functional beverage sector is now approaching 100 billion dollars a year. The functionality of beverages has moved in step with the functionality and food-as-medicine trends seen recently in the food and supplement spaces. This macro trend is no longer sufficient that a food or beverage product isn’t bad for you or that it’s dye compliant. This product must also do something positive for you.

Functional benefits can include cognitive health, pre-workout, post-workout, collagen for your skin and joints, digestive health, immunity building, anti-inflammatory, or combinations of these categories like hydration and wellness.

What we’re seeing is a lot more dialed-in nutrition that is tied to different functions, whether those are probiotics and gut health with drinks like kombucha, or sleep aids with drinks that contain magnesium citrate and melatonin.

We’re also seeing significant growth on a focus on working from home. Functional beverages that allow you to focus, work, watch your children, and teach school all at the same time are causing a lot of growth across the functional beverage industry.

Health and Wellness

Another trend being observed in CPG is the movement towards using clean ingredients and promoting wellness. Consumers are getting more intelligent and more sophisticated about what elements are going into the food and beverages we consume. The fewer ingredients- the better. The less processed- the better. The cleaner the ingredients- the better. And we’re just as focused on what we’re applying topically because that’s a part of overall health and wellness.

The growth of the natural channel and the healthy alternatives is a long-term trend, and it’s not going to slow down; if anything, it’s going to speed up. This creates a tremendous opportunity for new CPG brands to continue to innovate and move into this space.

We now see a move to meatless and vegetable-based proteins, products with low or no sugars, fats, or salts. In wellness, there has been a heightened focus on calm and anti-anxiety-oriented products. Cognitive functionality is a significant and growing trend in food and beverage. Understanding the ingredients set that are available to address ways in which you can get both taste and efficacy is vital.

Read more in the TEN Capital eGuide:

Hall T. Martin is the founder and CEO of the TEN Capital Network. TEN Capital has been connecting startups with investors for over ten years. You can connect with Hall about fundraising, business growth, and emerging technologies via LinkedIn or email:

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