If you’re an agency with clients in the consumer packaged goods (CPG) industry, we’ve got your back. In this post, we’ve rounded up some of the top CPG marketing trends to look for in 2025.
Whether your clients are health and beauty manufacturers or alcohol beverage companies, you’ll walk away with insights to help power your planning this upcoming year.
Let’s jump in.
1. CPG Digital Ad Spending Will Decrease
According to EMARKETER, CPG digital ad spending surged in growth in 2023 and 2024 as brands tried to connect with consumers who were spending less or investing in private labels. Though digital ad spending will continue to increase in 2025, we can expect to see a slowdown. In 2024, for instance, CPG digital ad spending increased by 16.6% to reach $49.95 billion. In contrast, in 2025, CPG digital ad spending will only increase by 6.1% to reach $52.99 billion.
This trend extends to all potential subcategories under the CPG umbrella. Here are the anticipated digital ad growth rates for 2025:
- Alcoholic beverage: 6.6% (compared to 22.1% in 2024)
- Food: 4.4% (compared to 5.4% in 2024)
- Non-alcoholic beverage: 2.6% (compared to 27.4% in 2024)
- Toiletries and cosmetics: 9.3% (compared to 19.2% in 2024)
What’s causing this slowdown in spending? EMARKETER points to four factors:
- Ease of inflation.
- Decline in interest rates.
- Fewer fears of a recession.
- Consumer spending choices becoming more similar to 2019’s choices.
Nevertheless, despite this cooldown, CPG brands are some of the biggest ad spenders compared to other industries such as media and entertainment, technology and electronics, and healthcare and pharma. In fact, in 2024, CPG digital ad spending was #1 after retail. Per EMARKETER, CPG has ranked second to retail in digital ad spending since they started tracking spending in 2016.
2. CPG Brands Will Invest in Display Ads Over Search Ads
EMARKETER predicts that CPG companies will invest more in display ads than search ads and prioritize upper-funnel brand awareness advertising. In 2025, this industry is anticipated to invest $30.66 billion in display ads (a 6% increase) while only investing $21.30 billion in search ads (a 6.4% increase). In 2024, CPG brands spent an estimated 58% of their budgets on display — and almost $9 billion more on display than search. This is a little more than the national average of 56.8%.
Nevertheless, search will still play a powerful role in CPG brands’ media mixes and experience growth as previously indicated.
3. Social and Video Ad Spending Will Be Tepid But Still Grow
Following the slowing down of ad spending trend, CPG brands investments in social and video ad spending will not be as high as in 2023 and 2024, but will still experience growth overall. In comparison to a 19.1% increase in ad spending in 2024, social network ad spending will only increase 6.5% in 2025, reaching $17.47 billion. And while CPG brands invested 25.1% more in 2024 than in 2023 in video ad spending, the percentage change will only be 9.3% in 205 ($19.47 billion).
4. Mobile Will Remain King for CPG Brands
CPG brands love investing in mobile advertising. According to an EMARKETER chart of mobile versus nonmobile U.S. digital ad spending by industry, CPG brands were #3 with the highest investment in mobile digital ad spending in 2024 — 69.3% mobile versus 30.7% nonmobile, just after telecom and technology and electronics. Other industries like retail, automotive and travel trail CPG brands in terms of mobile ad spending.
This preference is due in part to CPG brands significantly investing in social media ad spending given the success at lower-cost, lower-consideration product advertising for CPG brands.
5. Influencers Will Continue To Play a Role in CPG Marketing
CPG brands are relying upon influencer marketing to help boost brand awareness and product sales. Why is this? Influencer marketing helps CPG brands meet the buying preferences of younger generations like Gen Z and millennials, who are more and more turning to influencers for product recommendations. In-app purchases have also skyrocketed through social media apps such as with TikTok Shop, which pair perfectly with influencer marketing.
It’s not just mega-influencers (1M+ followers) and macro-influencers (100k – 10M followers) who are leading the charge — micro-influencers (1k – 100k followers) and nano-influencers (less than 1k followers) are making a splash as well.
Key Takeaways for CPG Marketing in 2025
As the CPG industry gears up for 2025, these trends signal a shift in how brands allocate their budgets and strategize their digital presence. From a tempered approach to ad spending to increased reliance on mobile and influencers, understanding these changes will empower agencies to create targeted, effective campaigns for their CPG clients.
Staying informed on these trends will be crucial in adapting to the evolving digital landscape and maximizing ROI for CPG brands in the coming year.
Want more insights on 2025 trends? Dive into the top B2C trends and the top B2B trends for 2025.
Michelle Philippon is a content marketing manager at Goodway Group. A creative and results-driven marketer with a record for producing captivating content, Michelle loves working with Goodway’s internal subject matter experts (SMEs) to provide useful insights to help agencies power their marketing campaigns to achieve meaningful outcomes. Michelle has over 10 years of experience writing for both business and consumer audiences and previously worked at a B2B marketing agency. She lives in Cleveland, Ohio, where she enjoys reading, hiking through Cleveland’s many metroparks, making jewelry from sea glass and drinking way too much coffee.