Consumer Goods - Industry - North America Market, Share and Trends 2023-2028

Summary of Consumer Goods

The North American consumer goods market represents sizable opportunities given the advanced economies and large consumer bases in its three major countries. The United States in particular stands out as the world’s largest consumer market with over 70% of regional sales currently. Canada and Mexico also contribute as their populations and middle classes expand.

Continued economic growth and rising disposable incomes are projected to increase the addressable consumer base through 2029. The North America’s consumer goods market was valued at $2800 billion in 2023 and is projected to grow up to $3450 billion in 2029 with a CAGR of 3.58 %, accounting for 23% of the global market according to our estimates.

E-commerce has surged in North America during the pandemic and boosted the prospects for consumer-oriented companies. Online shopping now accounts for over 20% of total retail sales as both pure-play digital retailers and multi-channel brands invest heavily in logistics, payment platforms and mobile apps. This allows consumer goods to be conveniently delivered directly to homes.

Health and wellness trends also influence demand. The growing prevalence of chronic diseases and a focus on preventative healthcare have supported sales of nutritional supplements, organic and natural personal care items, and other wellness-oriented consumer products. Customers seek options allowing them to proactively manage their health.

Overall— North America’s mature and extensive consumer markets that is complemented by a rapidly expanding online retail sector and demand for wellness goods, underpin projections for continued industry growth. Both global corporations and domestic players are well-positioned to benefit from these dynamics. Localization of offerings for each country remains important given cultural nuances.

Recent Trends and Insights

E-commerce has seen strong growth in North America over the past few years, driven significantly by the COVID-19 pandemic. Major consumer goods brands have invested heavily in developing robust omnichannel capabilities to better serve online shoppers and drive sales through multiple digital touchpoints.

Health and wellness remains an important trend influencing consumer demands and purchasing behaviors. Individuals are increasingly seeking products made with fewer ingredients and organic/natural labels. There is also strong demand for goods that demonstrate lower environmental impact. Brands have responded by reformulating items, highlighting clean ingredients, and setting public sustainability targets like reduced packaging.

Consumers also express greater interest in product customization. Online platforms facilitate personalized recommendations, while some brands offer customized formulations, flavors or packaging. This enhanced personalization builds stronger emotional connections between companies and customers. Overall the e-commerce expansion— wellness priorities and customization indicate evolving North American consumer behaviors that industry players must adapt to.

Product Insights

Innovation is occurring across various categories in North America. Private label brands are gaining prominence through value pricing and quality improvements. Major retailers have invested in developing high-quality store brand products offering savings without compromising on taste or performance.

Sustainability is an important factor influencing consumer purchases. Customers closely examine a product’s packaging, carbon footprint and the company’s broader environmental practices. Brands are highlighting their commitments to issues like reduced waste and climate action. Some offer refill options or bulk packaging to decrease plastic usage.

Customization and natural formulations are areas of focus. Online styling services and customized beauty regimens allow for a personalized consumer experience. Products with clean, recognizable ingredients lists are popular.

Plant-based meat and dairy alternatives continue gaining traction in the food and beverage segment. These items provide options for flexitarians and vegans without compromising on taste. Functional foods and beverages containing added ingredients for specific health benefits also see strong demand.

Overall— private label growth, sustainability priorities and customized natural products indicate the types of innovations succeeding across North American consumer categories. Both global and domestic companies are adapting their portfolios to meet evolving consumer demands. Localization of offerings remains important given cultural differences between the United States, Canada and Mexico.

Key Companies

Some major players within this vast domain of industry are

• PepsiCo
• Nestlé
• Coca-Cola Company
• Kraft Heinz
• Molson Coors
• Procter & Gamble
• Kimberly-Clark
• Church & Dwight
• Clorox
• L’Oréal

Regional Analysis

The United States represents the largest consumer goods market in North America at $2.04 trillion in 2023 according to our estimates. The US market is forecast to grow at a CAGR of 3.5% until 2029 on the back of continued economic expansion and population growth.

Canada and Mexico also present sizable addressable consumer bases as their populations and middle classes expand. Canada’s consumer goods market measures over $300 billion currently while Mexico exceeds $200 billion in size. Both Canadian and Mexican markets are projected to see gains matching or exceeding the regional average CAGR through 2029.

Opportunities exist across North America to localise product offerings according to regional tastes and preferences. While the United States dominates in scale, Canada and Mexico each have distinct consumer profiles shaped by language, culture and climate. Adaptation of branding, formulations, flavours and packaging tailored for individual country markets can strengthen market penetration for multinational corporations.

Rising disposable incomes are priming stronger domestic demand trends in the United States, Canada and Mexico over the long run. This supports projections of continued industry expansion supplying North American consumers. Both global and domestic companies are well-positioned to benefit from these dynamics through 2029.

Market Segmentation

By Type:

• Food and beverages
• Personal care and cosmetics
• Home care
• Other FMCG (fast-moving consumer goods)

By End User:

• Households/Residential
• Commercial sector (hotels, restaurants, offices etc)
• Institutional sector (schools, hospitals etc)

By Sub-Sector:

• Packaged foods
• Beauty and personal care
• Home care/home appliances
• Other non-durables

By Country:

• The U.S.
• Canada
• Mexico

Our Methodology

We have offered a well-founded review of the North America’s regional consumer goods market along with ongoing trends and upcoming projections to highlight proximate investment opportunities in this report. Moreover, an extensive analysis of any future prospects, challenges, competitors, or navigating aspects is also provided. A methodical detailed regional examination is presented.

Primary Research  

Our multi-pronged research approach includes interviews with industry leaders and a global survey of advanced manufacturing professionals to gain qualitative insights. We utilize our proprietary databases encompassing key performance indicators worldwide in order to collate relevant data points. A multivariate forecasting framework considering historical performance, current dynamics and qualitative factors are utilized to develop market sizing and growth projections through 2029.

We supplement our primary research with a careful examination of secondary materials such as– case studies, news stories and references from other sources. Organizations can benefit from the strategic advice and conclusions offered because they will be better equipped to respond to the dynamic nature of this industry and seize emerging possibilities.

We employ a comprehensive and iterative research methodology focused on minimizing deviation to provide the most accurate market estimates. Our research utilizes a combination of bottom-up and top-down approaches across segments and utilizes databases, primary research insights and industry experts for analysis.

Raw data is obtained from multiple sources and thoroughly filtered to ensure only authenticated and validated sources are considered. We collect data from raw material suppliers, industry associations, technology providers, and buyers to gain a holistic perspective.

Quantitative Analysis

Our market estimates are derived through statistical models, beginning with collection of historical data and analysis of macro- and micro-economic factors influencing the market. Gathered information on market dynamics, technology and pricing trends are utilised to build the models.

Econometric and technological models are applied to project short- and long-term market potential respectively. A bottom-up approach is preferred to minimize errors. Key parameters considered include market drivers and restraints, material pricing trends, regulatory scenarios, and capacity additions.

Weights are assigned to these parameters based on impact analysis and market forecasting is performed via statistical tools and techniques. We believe this methodology results in an accurate and realistic market picture.