IRI and Boston Consulting Group Announce 2022 U.S. CPG Growth Leaders

IRI, which recently merged with The NPD Group to create a leading global technology, analytics and data provider, and Boston Consulting Group (BCG), a leading global consulting firm, released their 11th annual Growth Leaders report. The report analyzes the growth performance of hundreds of large, medium and small public and private consumer packaged goods (CPG) companies and highlights drivers of success in today’s market.

“To drive growth in 2023, CPGs must concentrate on four key priorities: forward-looking and de-averaged revenue management, precision demand science to unlock underlying pockets of consumption growth, sustained operational efficiency rigor, and growth via M&A investment or divestiture”

“The leading CPGs in 2022 won by delivering pricing-led growth while maintaining or driving demand as consumers faced increased economic and inflationary pressures, and consumption patterns continued to stabilize in a post-COVID-19 ‘new normal,’” said Cara Loeys, principal, Client Engagement, IRI.

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Key Findings

• CPG omnichannel sales grew 8.4% in 2022, over 2021’s accelerated COVID-19-driven growth of 4.6%. Growth in 2022 was driven by price/mix (10.0%) while continuing to ease back on COVID-19-era volume growth (-1.5%). Aggregate CPG volume remains elevated over a three-year horizon (2.7% compound annual growth rate (CAGR), 2019-2022).
• Select Growth Leaders strategically drove or held volume growth in concert with price/mix strategy.
• Overall, CPG growth accelerated with all size segments delivering high single-digit or double-digit growth. Smaller branded CPGs continued to accelerate and take share, while private-label dollar sales share increased 0.4 percentage points.
• Trends from COVID-19 are long-lasting. Self-care, indulgence, energy and performance, and pet care were key portfolio trends that emerged from the pandemic.
• Promotions and marketing were essential to growth. Strategic shelf pricing and continued reduced promo activity, and accelerating impact from digital and social go-to-market capabilities, were key execution levers for CPG Growth Leaders.

Growth Leader Rankings

While the top three leaders drove meaningful volume growth in 2022, overall large CPG growth was driven by double-digit price and mix growth. Constellation Brands was the 2022 Growth Leader among large companies with 9.7% sales growth. Three of its top brands, Modelo, Pacifico and Corona, respectively, contributed to 102% of its overall growth. Constellation Brands was followed by Reckitt, L’Oréal, Bimbo and Mars.

Among midsized companies, Upfield led the list with 30.9% sales growth driven by significant portfolio-wide price/mix with only modest (1.2%) volume declines.

Launched in 2022 by online media celebrities KSI and Logan Paul, Prime Hydration was the growth leader among small-sized companies, disrupting the sports hydration and energy drinks categories. Within just one year, Prime grew an estimated $100 million-plus in retail sales.

“To drive growth in 2023, CPGs must concentrate on four key priorities: forward-looking and de-averaged revenue management, precision demand science to unlock underlying pockets of consumption growth, sustained operational efficiency rigor, and growth via M&A investment or divestiture,” commented Aman Gupta, managing director and partner at Boston Consulting Group.

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