2023 Consumer Products Industry Outlook | Deloitte Global (2024)

FAQs

What is the global industry outlook for 2023? ›

Description: The January 2023 World Economic Outlook Update projects that global growth will fall to 2.9 percent in 2023 but rise to 3.1 percent in 2024. The 2023 forecast is 0.2 percentage point higher than predicted in the October 2022 World Economic Outlook but below the historical average of 3.8 percent.

Inflation will weaken retailers' profits in 2023, but nominal growth of 6% in global retail sales will mask slowing growth in real terms.

Consumer staples companies fell out of favor in 2023 as revenue growth slowed and investors shifted their focus to mega-cap tech companies. However, valuations have fallen to compelling levels in the sector, and many companies could be poised for improved profit margins in 2024.

Economic outlook for the consumer products industry

The year 2024 will likely be characterized by slower economic growth than in 2023 and slower consumer spending growth. Yet it will probably be the last year of monetary policy tightening by major central banks.

Leisure and hospitality see renewed investments

Personal services, leisure, and hospitality led the way as wages, hiring, and overall revenues grew in 2023. Personal services have lower input costs than other industries, and a lower cost of goods sold gives them a higher gross profit margin.

For 2023, Fitch has raised its world growth forecast by 0.4pp compared to September's Global Economic Outlook (GEO), with the US up by 0.4pp to 2.4% and China by 0.5pp to 5.3%.

Pet supplements

There's no denying that people love their pets… And they're willing to spend money on high-quality pet products to ensure they're happy and healthy. This is especially true for pet owners in North America. This region is the leading market for pet supplements.

U.S. consumers remained surprisingly strong in 2023, which helped boost the relative performance of the consumer discretionary sector. For 2024, the sector may continue to be driven by macro considerations—such as the health of the economy and the direction of interest rates.

Record inflation, supply chain issues, labour shortages, global conflicts, climate change and a potential recession—each in isolation is challenging. Combined, they are overwhelming. And consumers' heads are likely spinning.

Despite the setback of the pandemic, the global CPG industry will continue to grow at a CAGR of 6.9% and reach $3.1 billion by 2028.

What is the fastest growing CPG category? ›

CPG Stock Forecast FAQ

The highest analyst price target is C$18.84 ,the lowest forecast is C$12.89. The average price target represents 26.44% Increase from the current price of C$11.72. Crescent Point Energy's analyst rating consensus is a Strong Buy. This is based on the ratings of 10 Wall Streets Analysts.

In spring 2023, 50 percent of companies rate their business situation as good and 40 percent as satisfactory. Only 10 percent report a poor business situation. In addition, 47 percent of the companies expect better business at their respective location in the coming twelve months (autumn 2022: 37 percent).

Global growth is forecast to slow from the 3.1% 2023 pace to 2.9% in 2024 and rebound to 3% next year. Inflation is expected to continue to cool, although in many countries the price pressure will take longer to unwind than it took to emerge.

In 2024-25, growth is set to underperform its 2010s average in nearly 60 percent of economies, comprising over 80 percent of the global population. Downside risks predominate, including geopolitical tensions, trade fragmentation, higher-for-longer interest rates, and climate-related disasters.

The value of international trade is expected to moderately decline to around US$ 31 trillion in 2023, driven by lower global demand, particularly for goods. On a positive note, trade volumes have been less volatile in recent years and are expected to remain stable in 2023.