Retail struggling!? Not quite in 2021 according to IHL Group. US Retail growth in 2021 through November was $831 billion. The growth for November alone was $91 billion. Total retail growth year to year is 18.2% and that is a $5.5 trillion market growing at 18.2% for the year. Even taking out c-stores and gas stations, the growth was 16.5%. And growth is accelerating.
What about the consumer-packaged goods (CPG) industry? The pandemic was a game-changer for CPG in 2020. According to BCG, following a modest 1.8% compound annual growth rate from 2016 through 2019, the industry grew last year by an impressive 10.4%. Large and midsize companies saw revenue gains of 7.5% and 9.5%, respectively. Small companies excelled with 15.4% growth, while extra-small companies fared even better, averaging an 18.3% revenue increase across the board. Private-label brands grew by 11.9%, and they gained market share, though at a lower rate than in years past. These trends continued in 2021.
Store closures have been a theme for years, but 2021 may turn out to be the year that trend finally changed. Store openings are on pace to surpass announced store closings for the first time in five years, according to Coresight Research.
Looking to 2022, here are five retail and consumer products trends to watch!