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Perspective:
Perspective
7 minute read

The future of CPG is here. Are you ready to thrive in an era of constant disruption?

In the first edition of our Consumer Products Compass series, we examine how Canadian consumer packaged goods (CPG) leaders are navigating a market reshaped by converging forces that are fundamentally redefining what it takes to remain relevant and achieve growth.

Tara Vandeweghe
Andrew Bond

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Key takeaways:

  • Six major forces are converging to transform the industry: Dramatic changes in consumer demographics, technology, social dynamics, climate, economics, and policy are reshaping the CPG landscape.
  • Digital and AI adoption is crucial: The explosion of advanced technologies, especially AI, is driving new business models and operational efficiencies. Canadian companies must accelerate adoption to remain competitive.
  • Agility and innovation drive growth: Data-driven insights and agile product development enable faster launches and successful expansion into new markets and segments.
  • Sustainability and social responsibility build trust: Brands that invest in ethical sourcing and transparent communication strengthen consumer relationships and reduce reputational risk.

Not long ago, mass-market brands dominated store shelves. But things have changed. Now, consumers expect niche products to reflect their values, health goals, and local preferences. Higher-income shoppers pay premiums for innovative and sustainable products, while value-driven households prioritize essentials. Brand loyalty is up for grabs, and companies that fail to personalize offerings, innovate, or demonstrate social responsibility are quickly losing market share.

Evolving consumer demands are only the beginning. Canadian CPG companies are navigating an increasingly complex landscape that includes:

  • consumers demanding hyper-personalized products tailored to personal preferences on a large scale;
  • retailers pushing for deeper trade promotions and digital activations;
  • an explosion of e-commerce and direct-to-consumer models;
  • rising costs for raw materials, logistics, and labour, compressing already-thin margins;
  • talent shortages in critical digital transformation areas like data analytics, automation, and AI;
  • increasing regulatory scrutiny and global supply chain fragility; and
  • escalating expectations for environmental and social responsibility.

To stay competitive in this environment, CPG leaders must take decisive action. This means embracing innovation, investing in digital capabilities, and using data-driven insights to meet changing expectations and sustain growth.

The six forces reshaping CPG

After 20 years of dramatic transformation, we now stand on the verge of an even more profound, once-in-a-century economic, social, and technological shift.

Roles, organizations, and even the nature of work are being transformed faster than ever before, as technology and innovation introduce fresh ways to create value and reshape our industry. The sheer scale and speed of these changes are converging to create a business landscape that’s constantly evolving.

Deloitte engaged more than 1,000 consumer industry experts and interviewed leading thinkers from various fields. We also analyzed monthly consumer data from 20 countries.

Our research identified over 250 distinct signals, which we distilled into six core forces that will shape the consumer industry over the next decade.

Here are the six forces reshaping CPG.  

The world’s consumer base is undergoing dramatic changes. Shifts in diversity, income, wealth, health, birth rates, age, and geographic dispersion are creating an unprecedented consumer.

Over the next decade, the world will add an estimated 2 billion consumers, with 90% of that growth in Asia and Africa.1

This creates a complex mosaic of needs and preferences.

Social dynamics are shifting. Trust in Canadian institutions is declining as Gen Z emerges as a dominant consumer group.2

Gen Z consumers are more likely to delay or postpone traditional milestones like marriage, homeownership, and having children—all key consumer activities.

The number of sole-person households is continuing to increase in Canada,3 while women will inherit 70% of global wealth over the next two generations and are estimated own two-thirds by 2030.4

Rising concerns around crime, mental health, and social isolation underscore the growing importance of equality, trust, and transparency for consumers, employees, and investors.  

Technology is advancing at an unprecedented pace. The influence of AI and other emerging technologies can radically alter the ways businesses and consumers interact.

AI can enhance consumer experiences, drive sales, and tailor product recommendations based on individual shopper needs and preferences. It can also help speed product development cycles for recipe formulation, reducing the time to market for new products. Canadian companies currently lag global peers in AI adoption and will need to catch up to meet the moment.5

In addition to AI and automation, the next decade will see the convergence of infotech and biotech, potentially making recent changes seem minor by comparison.  

Technology, declining barriers to entry, and broad innovation are driving both consolidation and fragmentation. Rising costs and labour shortages compound industry challenges.

Many Canadians are turning to the gig economy for work, with research showing as many as 2.4 million people, or 8.9% of the population, engaged in gig work in 2022.6

Industry convergence, the gig economy, expanded delivery, and growth in digital goods and services present new opportunities for agile CPG companies.  

The planet faces growing greenhouse gas emissions, rising temperatures, sea-level increases, and natural disasters.

By 2050, an estimated 200 million people will need humanitarian assistance due to climate change.7 The CPG industry, given its scale, has a critical role to play in mitigating these challenges.

However, there is hope: declining costs for clean energy, improved battery and storage solutions, water desalination, and alternative protein sources offer new avenues for sustainable growth.  

6. Shifting economics, policy, and power

A move away from globalization and rising geopolitical tensions creates a more complex operating environment, limiting expansion and forcing new approaches to sourcing and supply chains.

Globally, cybercrime is expected to double by 2027, while policy uncertainty and protectionist trends add further complexity.8  

Six strategic imperatives for future-ready CPG companies

What can Canadian CPG companies do to succeed in this new reality?

1. Grow with new channels and market pathways

Embrace digital, direct, and data-driven routes to market. Companies are leveraging AI to tailor offers, collaborating with retailers on advanced product placement, and exploring social commerce, subscriptions, hyper-localization, retailer-owned media networks, and business-to-business e-commerce (eB2B).9

2. Expand market share through agile portfolio innovation

New sources of consumer data and AI-driven research and development can fuel consumer-centric innovation and enable faster, more precise product launches. Wellness products, personalized nutrition, and eco-friendly packaging are driving growth. Research shows Canadians have a strong preference for eco-friendly packaging and over 90% are concerned about the impacts of food packaging on the environment.10

3. Scale by expanding market frontiers

Entering new segments, markets, and geographies is less risky thanks to advanced analytics and flexible production models. Develop tailored products for distinct regional markets to meet local consumer needs to increase market penetration and boost brand loyalty at the local level.

4. Drive breakthrough efficiency and margin with modernized tech



Cloud, automation, and advanced analytics are essential parts of your modern tech stack. Companies are cutting costs and boosting supply chain resilience with AI-driven forecasting, robotic process automation, and smart factory solutions.

5. Revolutionize performance with integrated, predictive operations

Predictive analytics and machine learning are transforming demand forecasting and dynamic pricing. Unified data foundations enable real-time decision-making and granular market insights. For marketing, machine learning and generative AI can help you personalize messaging and create targeted campaigns to speak directly to individual customers. Digital twins can simulate how consumers might react to a new product before it hits the market to make launches much more successful.11

6. Lead with sustainability and social responsibility

Authenticity and transparency drive loyalty. Brands investing in ethical sourcing, zero-waste initiatives, and transparent labeling are building stronger consumer relationships and reducing reputational risks.

Navigating the future: Key questions to ask

While you seek to thrive in today’s evolving environment, Deloitte can help you consider these key questions:

  • What opportunities exist within our product portfolio for innovation that aligns with emerging consumer trends such as health, wellness, and personalization?
  • How can we effectively evaluate and enter new markets or geographies while minimizing risks and maximizing growth potential?
  • What areas of our operations could benefit most from AI and robotics integration to improve efficiency and supply chain resilience?
  • How can we leverage AI and data analytics to enhance our consumer experiences and drive sales across new channels?
  • How can we recruit and keep the talent we need to develop and maintain effective AI and data analytics solutions?
  • How can we integrate sustainability into our core business practices to help enhance brand loyalty and meet growing consumer expectations?

The CPG transformation journey isn’t one-size-fits-all. Connect with our leaders to explore strategies that will turn today’s disruption into tomorrow’s advantage.  

  1. World Economic Forum, “How the consumer class continues to rise,” published July 18, 2025.
  2. Edelman Canada, “Trust in Crisis: Canadians Lose Confidence in Institutions as Grievance Takes Hold,” published March 4, 2025.
  3. Statistics Canada, “Home alone: More persons living solo than ever before, but roomies the fastest growing household type,” retrieved November 18, 2025.
  4. BNN Bloomberg, “Massive wealth transfer will give women US$34 trillion by 2030,” published December 9, 2024.
  5. Deloitte, “Building Canada’s brightest AI future,” retrieved November 18, 2025.
  6. Statistics Canada, “Measuring gig work, digital platform employment and dependent self-employment,” retrieved November 18, 2025.
  7. UNHCR, “How climate change impacts refugees and displaced communities,” published November 12, 2024.
  8. ABS-CBN News, “Global cost of cyberattacks to hit $23 trillion in 2027: US official | ABS-CBN News,” published October 18, 2023.
  9. Deloitte, “The case for agentic AI in retail with AI-sourcing,” published October 17, 2025.
  10. Government of Canada, “Canadian environmental sustainability shopping habits,” retrieved November 18, 2025.
  11. Deloitte Insights, “New uses for digital twins in the race to navigate an uncertain future,” published October 18, 2024.  

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Chat with our leaders

Tara Vandeweghe

Tara Vandeweghe

Partner, National Consumer Products Sector Leader
416-775-4773
Andrew Bond

Andrew Bond

Partner, CPG Sales and TPM Excellence Leader
905-315-6718

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