D2C for CPG Brands 2023

Ecommerce’s share of grocery and CPG sales varies widely by product category.

About This Report

Consumer packaged goods (CPG) brands have attempted to break into D2C ecommerce in recent years, to varying degrees of success. How can they avoid unprofitable strategies and develop a viable D2C ecommerce channel?

Topics

Brand Marketing

Table of Contents

Increased digital ad spending by CPGs will help drive their D2C ecommerce sales.

Subscription fatigue won’t limit CPG brands’ potential for subscription commerce.

CPG brands must evaluate whether D2C is a viable channel for them.

High customer lifetime value is the key to D2C viability.

CPGs should determine if subscription ecommerce in their categories will drive LTV.

CPGs and beauty brands are leading the latest wave of digital natives’ growth.

TikTok is the future of CPG brand discovery in D2C.

CPG brands are abandoning Facebook ads while ramping up their TikTok spend.

CPGs can use D2C strategies to drive profitable brand growth under the right conditions.

US Beauty Direct-to-Consumer Ecommerce Sales, by Retailer Type, 2020-2022* (billions and % change vs. prior year)US Retail Ecommerce Sales Penetration of Grocery Products, by Category, 2016-2025 (% of total retail sales in each group)

Consumer packaged goods (CPG) and beauty brands that pivoted to D2C strategies during the pandemic are struggling to convince shoppers to unbundle individual purchases from their regular grocery and drugstore trips. But certain brands—including several disruptors leading the next wave of D2C growth—have shown that profitable D2C ecommerce sales can be achieved.

Key Question: What are the best strategies for CPG and beauty brands to grow their D2C ecommerce sales?

US Beauty Direct-to-Consumer Ecommerce Sales, by Retailer Type, 2020-2022* (billions and % change vs. prior year)

KEY STAT: Pure-play D2C beauty brands have dramatically increased their ecommerce sales from $2.3 billion in 2020 to $3.5 billion in 2022, per NielsenIQ.

Here’s what’s in the full report

3files

Exportable files for easy reading, analysis and sharing.

9charts

Reliable data in simple displays for presentations and quick decision making.

Ecommerce’s share of grocery and CPG sales varies widely by product category.
Increased digital ad spending by CPGs will help drive their D2C ecommerce sales.
Subscription fatigue won’t limit CPG brands’ potential for subscription commerce.
CPG brands must evaluate whether D2C is a viable channel for them.

High customer lifetime value is the key to D2C viability.
CPGs should determine if subscription ecommerce in their categories will drive LTV.
CPGs and beauty brands are leading the latest wave of digital natives’ growth.
TikTok is the future of CPG brand discovery in D2C.

CPG brands are abandoning Facebook ads while ramping up their TikTok spend.
CPGs can use D2C strategies to drive profitable brand growth under the right conditions.
Sources
Media Gallery

Charts in This Report

US D2C Ecommerce Sales, 2019-2025 (billions, % change, and % of total retail ecommerce sales)US Subscription Ecommerce Sales, 2022-2027 (billions, % change, and % of retail ecommerce sales)

Average Customer Lifetime Value (LTV) of Subscription Ecommerce Consumers Worldwide, by Product Category, 2021 & 2022 US Amazon Subscribe & Save Household Penetration, by Consumer Packaged Goods (CPG) Category, 2020-2022* (% of total category purchases)

Top-Gaining D2C Ecommerce Websites Worldwide, 2022 (millions and % change)Social Platforms on Which US Gen Z vs. Total Shoppers Most Often Discover Consumer Packaged Goods (CPG) Products, Feb 2023 (% of respondents)

US Direct-to-Consumer (D2C) Consumer Packaged Goods (CPG) and Beauty Brands' Share of Ad Spending, Q1 2020-Q4 2022 (% of total)

Access full deck

View a slide-show representation of this report’s key insights, where carefully vetted data is combined with industry trend analysis, included at no extra cost.

Gain Access to EMARKETER →

Access All Charts and Data

Gain access to reliable data presented in clear and intelligible displays for quick understanding and decision making on the most important topics related to your industry, included at no extra cost.

Gain Access to EMARKETER →

Download

Report

Deck

One-Pager

Table of Contents

Ecommerce’s share of grocery and CPG sales varies widely by product category.

Increased digital ad spending by CPGs will help drive their D2C ecommerce sales.

Subscription fatigue won’t limit CPG brands’ potential for subscription commerce.

CPG brands must evaluate whether D2C is a viable channel for them.

High customer lifetime value is the key to D2C viability.

CPGs should determine if subscription ecommerce in their categories will drive LTV.

CPGs and beauty brands are leading the latest wave of digital natives’ growth.

TikTok is the future of CPG brand discovery in D2C.

CPG brands are abandoning Facebook ads while ramping up their TikTok spend.

CPGs can use D2C strategies to drive profitable brand growth under the right conditions.

Ecommerce’s share of grocery and CPG sales varies widely by product category.

About This Report

Topics

Brand Marketing

Table of Contents

Increased digital ad spending by CPGs will help drive their D2C ecommerce sales.

Subscription fatigue won’t limit CPG brands’ potential for subscription commerce.

CPG brands must evaluate whether D2C is a viable channel for them.

High customer lifetime value is the key to D2C viability.

CPGs should determine if subscription ecommerce in their categories will drive LTV.

CPGs and beauty brands are leading the latest wave of digital natives’ growth.

TikTok is the future of CPG brand discovery in D2C.

CPG brands are abandoning Facebook ads while ramping up their TikTok spend.

CPGs can use D2C strategies to drive profitable brand growth under the right conditions.

US Beauty Direct-to-Consumer Ecommerce Sales, by Retailer Type, 2020-2022* (billions and % change vs. prior year)

US Retail Ecommerce Sales Penetration of Grocery Products, by Category, 2016-2025 (% of total retail sales in each group)

US D2C Ecommerce Sales, 2019-2025 (billions, % change, and % of total retail ecommerce sales)

US Subscription Ecommerce Sales, 2022-2027 (billions, % change, and % of retail ecommerce sales)

Average Customer Lifetime Value (LTV) of Subscription Ecommerce Consumers Worldwide, by Product Category, 2021 & 2022

US Amazon Subscribe & Save Household Penetration, by Consumer Packaged Goods (CPG) Category, 2020-2022* (% of total category purchases)

Top-Gaining D2C Ecommerce Websites Worldwide, 2022 (millions and % change)

Social Platforms on Which US Gen Z vs. Total Shoppers Most Often Discover Consumer Packaged Goods (CPG) Products, Feb 2023 (% of respondents)

US Direct-to-Consumer (D2C) Consumer Packaged Goods (CPG) and Beauty Brands' Share of Ad Spending, Q1 2020-Q4 2022 (% of total)

US Beauty Direct-to-Consumer Ecommerce Sales, by Retailer Type, 2020-2022* (billions and % change vs. prior year)

US Retail Ecommerce Sales Penetration of Grocery Products, by Category, 2016-2025 (% of total retail sales in each group)

US D2C Ecommerce Sales, 2019-2025 (billions, % change, and % of total retail ecommerce sales)

US Subscription Ecommerce Sales, 2022-2027 (billions, % change, and % of retail ecommerce sales)

Average Customer Lifetime Value (LTV) of Subscription Ecommerce Consumers Worldwide, by Product Category, 2021 & 2022

US Amazon Subscribe & Save Household Penetration, by Consumer Packaged Goods (CPG) Category, 2020-2022* (% of total category purchases)

Top-Gaining D2C Ecommerce Websites Worldwide, 2022 (millions and % change)

Social Platforms on Which US Gen Z vs. Total Shoppers Most Often Discover Consumer Packaged Goods (CPG) Products, Feb 2023 (% of respondents)

US Direct-to-Consumer (D2C) Consumer Packaged Goods (CPG) and Beauty Brands' Share of Ad Spending, Q1 2020-Q4 2022 (% of total)