Consumer packaged goods (CPG) companies are navigating one of their most challenging periods in recent history. Growth has slowed across many food, household, and personal care categories, and valuation multiples remain below historical averages. With the sector now in its third year of a bear market, incremental adjustments may not be enough, and companies must consider strategic overhauls to emerge stronger.
The strongest companies will look beyond short-term challenges and focus on creating sustainable value. This may include pursuing acquisitions that strengthen their portfolios, but it also means getting more from existing assets. Underperforming brands, ineffective pricing strategies, and stalled innovation efforts can all represent opportunities for growth if managed effectively.
In addition to maximizing resources, a cohesive go-to-market strategy is vital. Product, pricing, packaging, communication, and retail execution must work together to create a unified market presence. Organizations that align these elements are often better positioned to drive both sales and profitability, while disconnected strategies can create openings for competitors.
Long-term success also requires building differentiated capabilities. Just as chess players control key areas of the board to maintain flexibility, CPG companies must focus on unique strengths such as data analytics, supply chain agility, direct consumer engagement, or brand community building.
As companies look for growth, protecting their core business remains critical. Focusing on key brands and products, while moving away from non-core areas, can improve performance and free up resources for future opportunities.
Historical data highlights the benefits of acting during downturns. According to FactSet and William Blair Equity Research, sector bear markets have typically been followed by strong recoveries, creating opportunities for companies that make strategic investments before conditions improve.
The outlined strategies are not merely concepts; they are actionable steps that deliver measurable results. Companies already applying these principles are gaining momentum, while those relying on reactive tactics risk falling further behind. With valuations and earnings expectations at their lowest during this bear market, our view is the window for action is open. The companies that think several moves ahead today may be the ones that lead the sector tomorrow.
For more information on related investment opportunities and insights, read Industry Insights: Time for Chess, Not Checkers, published on April 29, 2026, by Jon Andersen, CFA, partner, and equity research analyst for the consumer sector.