As the U.S. economy continues to improve, consumer confidence has been on the rise, which would typically indicate growth for consumer packaged goods manufacturers as well. However, according to a new Hot Topic Report from Acosta, a sales and marketing agency in the CPG industry, unit sales are flat across most categories, and trade promotions continue to decline as a key factor in driving incremental volume. This decline leads to more unprofitable sales for manufacturers. Despite this, CPG manufacturers continue to allocate an average of 15 percent to 20 percent of gross sales to trade promotion.

Analyst Insight: Consumers want the same experience regardless of what supply chain is in play. Consumers' expectations are growing and now the brands must be more cognizant of their supply chains and how it supports the brand. The dynamics between CPG - retail - consumer has changed drastically. Consumers no longer distinguish between channels and therefore CPGs themselves must be more proactive to manage their role in this ecosystem. - Guy F. Courtin, Vice President & Principal Analyst Constellation Research