As we close out 2025, the CPG landscape is evolving at record speed, driven by new consumer realities, AI-powered personalization, and a redefined innovation cycle that blurs the line between digital and physical commerce. Inflation pressures, changing household budgets, and shifting loyalty patterns are creating a “two-tier” economy where value and premium coexist more sharply than ever. At the same time, brands are racing to adopt smarter data tools, faster product pipelines, and omnichannel strategies that meet shoppers wherever they are. Together, these forces are reshaping how CPG marketers think about growth, differentiation, and connection heading into 2026.
This holiday season, shoppers are moving in two different directions; some are focused on saving money, while others are spending freely on premium products resulting in the “Two-Tier” Consumer Economy.
Two Shoppers, Two Strategies
The “two-tier” consumer economy — a divide in spending behavior where one segment of shoppers is cutting back and prioritizing value, while another continues to spend freely on premium products and experiences — is becoming increasingly evident as the year draws to a close. Recent reports indicate this gap is widening, reflecting a broader polarization in purchasing power and brand preference across income levels.
For CPG brands, this is the time to get more intentional about segmentation. Price-sensitive shoppers want promotions, private-label alternatives, and value packs. Alternatively, more affluent consumers are looking for unique flavors, limited editions, or sustainability-driven products.
Moving through Q4 and into 2026, brands should consider developing parallel strategies: one built around value and accessibility, and another centered on premium storytelling. Messaging and product mix should vary by audience segment to reflect the most relevant message to each consumer. Brands that miss this nuance risk losing share, either by failing to connect with budget-conscious buyers or missing the opportunity to tout innovation and higher end products to those seeking an elevated product or experience.
Sources:
- https://www.numerator.com/visions-consumer-trends/
- https://www.bain.com/insights/consumer-products-report-2025-reclaiming-relevance-in-the-gen-ai-era
AI and personalization take center stage as consumers increasingly expect brand experiences that feel personal — an expectation that AI is finally making scalable for CPG marketers.
Smarter Targeting, Sharper Relevance
Across the category, personalization is shifting from a buzzword to the expected baseline. Industry reports show AI is helping brands tailor product recommendations, optimize messaging, and even inform packaging or formulations.
We’re seeing this play out through smarter bundles, dynamic creative optimization (as with the value vs. premium message targeting mentioned above), and more targeted promotions, like AI-driven offers that boost average order value by up to 50%.
As CPG brands look to build their 2026 strategies, personalization should be built into every touchpoint from loyalty programs to DTC packaging to paid media. The most effective campaigns will use data to deliver relevance in real time, not just in planning cycles. However, personalization also needs a human touch: tone, empathy, and authenticity matter just as much as the algorithm. This is where Harmonee, Harmelin’s suite of proprietary data and technology solutions, can be utilized to help brands differentiate themselves from the competition, delivering complex strategy solutions that can quickly be implemented and optimized.
Sources:
- https://dragonflyai.co/resources/blog/trends-and-technologies-shaping-the-cpg-industry
- https://www.netsuite.com/portal/resource/articles/business-strategy/cpg-industry-trends.shtml
- https://neato.com/blog/summer-2025-ecomm-trends-what-it-means-for-q4
Innovation drives success at shelf and in cart, as brands that launch, test, and iterate quickly are gaining shelf space and consumer attention ahead of slower competitors.
Faster Launches, Bigger Wins
According to Siemens’ 2025 analysis, the biggest difference between category leaders and laggards isn’t product creativity, it’s speed. The brands that are seeing the greatest success are those that are rethinking the way they innovate: breaking down silos, running cross-functional campaigns, and getting new products to market faster with real time feedback.
For today’s CPG brands agility matters more than product count. In the coming months, stand out brands will focus on fewer, smarter launches, built for fast learning and quick scale. Limited runs, short-term drops, and “test-and-learn” innovation cycles are becoming the norm.
Brands should lean into newness and urgency in messaging, even if launches are smaller or more localized. Freshness and responsiveness are key to driving buzz across crowded categories.
Source: https://blogs.sw.siemens.com/consumer-products-retail/2025/06/11/cpg-innovation-speed-integration/
Direct-to-Consumer and omnichannel go mainstream as CPG brands accelerate efforts to connect digital, DTC, and retail experiences, meeting shoppers seamlessly across every point of purchase.
Blending Online and In-Store Worlds
DTC and omnichannel models have evolved from experimental tactics into core growth engines for CPG brands. Consumers are seamlessly blending channels — researching online, purchasing in-store, subscribing via DTC, or ordering directly from social ads.
To keep pace, many brands are adopting hybrid campaigns that connect digital and physical touchpoints: in-store activations that drive online loyalty, online exclusives that encourage retail visits, and influencer-driven drops that blur the line between platforms. Brands that own their first-party data and deliver a cohesive experience across channels will be best positioned to lead.
As brands look to update their strategic approach in 2026, omnichannel storytelling will be key. The same brand story should be carried across media, shelves, and screens with Retail Media and DTC playing a key role in testing, data gathering, and driving loyalty.
Sources:
- https://www.spins.com/resources/report/2025-industry-update-trends-predictions
- https://www.netsuite.com/portal/resource/articles/business-strategy/cpg-industry-trends.shtml
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