CPG industry advertising in the U.S. - statistics & facts
Consumer packaged goods (CPG) advertising is a marketing sector dedicated to the promotion of perishable consumer goods such as food, beverages, or household products. As these items are used and replenished regularly, the CPG industry has become a highly competitive landscape, with numerous brands and companies campaigning for shelf space and consumer dollars alike. In the United States, the largest global ad market, CPG brands of various sectors, sizes, and price tiers have started to increase marketing spending in recent years. According to a survey conducted among U.S. marketing professionals, roughly 24 percent of CPG companies’ budgets were devoted to marketing efforts in early 2021, making CPG the leader among the U.S. industries with the highest share of ad expenditures. But while market leaders such as PepsiCo and L’Oréal continue to invest billions of dollars in marketing campaigns each year, they must now adapt to fundamental shifts in consumer behavior.
CPG advertising trends
The CPG industry encompasses food, personal care, household supplies, alcoholic and non-alcoholic beverages. In 2020, the food subcategory accounted for the largest share of CPG advertising spending in the U.S., followed by personal care and household supplies. This distribution of advertising funds is not surprising, considering that products from these categories experienced a rapid surge in demand following the outbreak of the coronavirus (COVID-19) pandemic. In 2021, the entire U.S. CPG sector saw an increased spending on advertising by one percent, however, when broken down by medium, digital grew over 100 percent compared to 2020. According to the latest data, CPG brands rapidly embrace digital ad formats and leverage technology to keep up with the changes in consumer behavior and expectations. As shoppers browse for CPG products online now more than ever, companies increasingly focus on data-driven marketing approaches to pique consumer interest and influence each step of the shopping journey. In fact, a study from late 2021 revealed that 71 percent of CPG marketers planned to invest more into connected TV advertising, and 59 percent wanted to increase spending on social media.
Which CPG brands spend the most on advertising?
CPG companies are among the most prominent advertising spenders in the United States. While consumer demand for overall CPG products remains largely consistent, the high market saturation makes the sector a highly competitive battleground for brands across various categories. In 2021, L’Oréal Paris remained the leading personal care brand in the U.S. in terms of ad spend, with its parent company L’Oréal investing more than 203 million U.S. dollars in promotion. In the household products category, brands owned by Procter & Gamble unsurprisingly boasted the largest advertising expenditures in 2021. P&G has been the world’s largest consumer goods company for several decades, not least because of their multi-billion-dollar advertising campaigns.
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