2025 Consumer Products Industry Outlook
Spending while saving: Pricing headwinds lead companies to look elsewhere for profitable growth
From 2021 to 2023, consumer products companies often relied on raising prices—something many had to do because the price of inputs had gone up. However, those price increases also helped companies grow profitably. While the ability to price-take started to decline last year, consumers largely continued to spend.
If inflation rears its head again from tariffs, supply chain challenges, or other unexpected disruptions, this could shift. But for 2025, most industry executives surveyed no longer anticipate significant price-taking. Many think raising prices will not help with revenue growth and would instead cause retailers to push back while materially decreasing consumer demand. Amid rising competition spanning global players to agile niche entrants, an overreliance on pricing strategies as the driver of growth risks alienating consumers and may just temporarily mask brand relevance issues.
Refer to full report on Deloitte Insights.
Stephen Kuzyk
