The end result of the 2024 US Presidential election might have far-reaching implications for companies throughout numerous sectors, and shopper packaged items (CPG) manufacturers aren’t any exception. With modifications in coverage, financial priorities, and regulatory environments, CPG manufacturers should navigate a shifting panorama that would impression every part from shopper spending patterns to provide chain stability. As we get nearer to Inauguration Day (January 20, 2025), understanding these potential modifications and adapting methods accordingly will probably be essential for CPG manufacturers seeking to keep aggressive and resilient within the face of a brand new administration.
On this put up, Mintel specialists throughout classes will discover key methods the election outcomes might impression CPG manufacturers and what they’ll do to arrange.
Lisa Dubina, Affiliate Director of Tradition & Id
As Individuals headed to the polls in late October, 61% agreed they had been uninterested in election information and political discussions. Regardless of the patterns rising in shopper sentiment, it’s essential to do not forget that the American inhabitants will not be a monolith. Put up-election sentiments differ throughout demographic cohorts and political affiliations. Based mostly on the election’s common vote, it’s clear {that a} share of the US inhabitants is at present celebrating and excited to see the change the brand new administration will convey. Manufacturers aiming for mass market enchantment can construct on this optimistic momentum of their messaging of unity and togetherness. Using forward-looking messaging that appeals to the concept of embracing change and a contemporary begin can have interaction a broad share of the market.
Then again, manufacturers advertising and marketing to a definite shopper base ought to discover a extra nuanced method. For instance, advertising and marketing particularly to multicultural girls beneath the brand new administration would require extra tailor-made messaging. Exit polls present that Black girls overwhelmingly turned out for Vice President Harris, which signifies the election outcomes probably maintain extra emotional weight amongst these shoppers. As Black and multicultural girls transfer ahead post-election, manufacturers partaking with these teams will need to take into account messaging that emphasizes self-care, encourages psychological well-being, and in the end endows shoppers with a way of continued hope and empowerment. Such a messaging will probably resonate with Black feminine shoppers greater than messaging that fails to acknowledge their distinctive perspective on the election outcomes.
How did the media play a job within the election?
The 2024 election solidified social media’s energy within the nation’s political panorama. Over half of Gen Z and Millennials used not less than one social media platform to maintain up with election information and protection. It’s additionally evident that social media amplifies influential, digital echo chambers which can be shaping customers’ political outlooks and views.
Shoppers who relied on X, Fb, Instagram, and/or TikTok for 2024 election protection have distinct opinions in comparison with the overall inhabitants. These shoppers usually tend to view the nation as much less divided, demonstrating the best way social media protection reverberates the views and values that customers already “like” and subscribe to.
As social media turns into extra ingrained within the nation’s political tradition and information consumption, conventional information shops might want to develop new methods to earn shoppers’ belief and be heard amongst social media platforms’ distorting algorithms.
What is going to a brand new Trump presidency imply for the Magnificence and Private Care, Monetary Companies, and Meals & Drink industries? Our specialists break down their predictions under:
Magnificence and Private Care
Sarah Jindal, Senior Director of Magnificence, Private Care and Family
Within the wake of current political shifts, the sweetness and private care business is poised to navigate a fancy panorama of challenges and alternatives. As tariffs enhance, manufacturers face the inevitable rise in the price of items, which is able to switch to the buyer. This in itself will reshape market dynamics, notably for center and decrease financial segments.
The impression of tariffs will probably be felt throughout all the provide chain, from substances to packaging and completed items. This might have an effect on the tempo of innovation, as manufacturers are compelled to reformulate, determine home ingredient sources, rationalize SKUs, and reevaluate distribution.
Okay-beauty lately made a resurgence within the US market, particularly within the solar safety class. There may be potential that these merchandise, as soon as accessible to many, might remodel right into a luxurious market, predominantly serving prosperous shoppers.
The potential financial implications are profound. With monetary issues heightened post-election, shoppers are anticipated to prioritize primary wants over discretionary magnificence bills. This shift might result in a downtrend in high-end product classes, forcing status manufacturers to rethink their pricing methods and discover inexpensive choices. It could additionally shift the main target to magnificence as an “inexpensive luxurious”, whereas costs in different shopper items classes, equivalent to vogue, soar.
Alterations to healthcare laws, notably the Inexpensive Care Act, might additional affect shopper conduct. As insurance coverage protection turns into much less accessible, the demand for inexpensive over-the-counter (OTC) well being merchandise will surge. This development underscores the necessity for OTC manufacturers to innovate, and to fulfill shopper expectations for security and efficacy.
Concurrently, the resurgence of ‘Made in America’ advertising and marketing displays a broader push for localized manufacturing and sourcing. Nevertheless, this shift might probably stall product innovation as manufacturers grapple with provide chain constraints and rising bills.
Potential reductions in FDA laws might impression product security. Diminished oversight will increase the danger of product remembers and erodes shopper belief. This might impression claims and product labeling associated to OTC merchandise (ie anti-acne). Daring claims made with out validation might surge, fueling shopper distrust.
What ought to manufacturers do?
Manufacturers might want to reassess their advertising and marketing methods, probably retreating from inclusive, social issue-based messaging as they adapt to financial populism. In essence, the BPC business is at a pivotal crossroads, the place financial, political, and social elements converge. Manufacturers that stay agile, responsive, and modern are prone to thrive, turning challenges into alternatives on this ever-evolving market panorama.
Monetary Companies
Andrew Davidson, Chief Insights Officer
Have you ever checked out your 401K for the reason that election? In case you are among the many 60% of adults with a 401K, checking your stability for the reason that election would possibly convey a smile to your face. The inventory market soared to new heights following Donald Trump’s victory, as buyers wager that his guarantees of tax cuts and deregulation will spur financial development, often known as “The Trump Commerce.” Equally, in case you are one of many 40% of shoppers proudly owning cryptocurrency, you is perhaps equally delighted. Bitcoin has reached unprecedented ranges, fueled by Trump’s marketing campaign pledge to make America the “crypto capital of the planet.”
Conversely, tens of millions of Individuals who don’t take part within the inventory market or personal crypto aren’t experiencing these advantages. Shopper debt is at document ranges, and plenty of proceed to really feel the strain on family budgets because of persistent inflation. This highlights a divide, harking back to sentiments after Trump’s first election victory. Whereas some features have developed, basic challenges stay.
Within the monetary companies business, there’s cautious optimism that Trump will ease monetary laws, which have posed challenges for the sector. The potential approval of Capital One’s acquisition of Uncover – which might create the most important bank card issuer within the US – now appears extra probably, mirrored of their rising inventory costs. Nevertheless, uncertainty looms. His proposal of a ten% cap on bank card rates of interest stands in distinction to his pro-business picture, illustrating the unpredictability of future insurance policies.
For shoppers, particularly older ones, issues about tax insurance policies and regulatory modifications are vital. The query on everybody’s thoughts is, ‘What does it imply for me?’—whether or not it’s about investments, mortgages, retirement, scholar loans, or some other monetary concern you possibly can fill within the clean with. On this unsure local weather, monetary companies manufacturers should prioritize clear communication to handle shopper questions and supply assurance. Those that prioritize shopper wants will construct belief and loyalty for the long run.
Meals & Drink
Jenny Zegler, Director, Mintel Meals and Drink / Stephanie Mattucci, Director, Mintel Meals and Drink
Previous to the election, in August 2024, Mintel analysis confirmed that 55% of Individuals mentioned the end result of the 2024 elections was a big supply of stress for them and 64% felt there can be extra political division after the 2024 election. The American Psychological Affiliation additionally reported nearly all of Individuals, 77%, thought-about the way forward for the US as a big supply of stress of their lives.
Over the previous a number of years, the aftershocks of extremely disruptive occasions have triggered US shoppers to reassess their spending priorities. Within the two months previous October 2024, 35% had reduce on eating out/different leisure actions and 28% had reduce on luxuries/non-essential merchandise.
As outlined in Maslow’s hierarchy of wants, shoppers will put their physiological and security wants first. Food and drinks are important to folks’s primary physiological wants, alongside housing and safety, which should be met earlier than folks can really feel a way of consolation and belonging.
Present compassion with inexpensive costs
Maslow’s psychological principle creates the chance for foods and drinks corporations to supply non-partisan reassurance to anxious shoppers by offering all shoppers with tasty, inexpensive, and secure foods and drinks. Mintel knowledge reveals that over half of US shoppers suppose US manufacturers/corporations shouldn’t tackle main political occasions that have an effect on the nation.
A main message for foods and drinks manufacturers must be on efforts to keep up costs, or when doable decrease them. Inflation is an aftershock that has left US shoppers weary. Practically 6 in 10 US shoppers had been affected by will increase in foods and drinks costs within the two months main as much as October 2024. That is little reprieve from fall 2023 when 65% of US shoppers reported they had been affected by will increase in foods and drinks costs. Manufacturers might want to provide compassion and economical options this vacation season and past. Already, retailers equivalent to Aldi, Goal, and Walmart are aiming to draw shoppers with low-priced Thanksgiving meals.
Keep steadfast to security and duty
As marketing campaign guarantees are remodeled into new insurance policies in 2025, the security pillar of Maslow’s hierarchy of wants will come into focus. Meals security and safety will turn out to be a key situation as the brand new administration shares its plans for tariffs, de-regulation, and immigration. Amid these shifts, corporations can provide consistency by reminding shoppers of their long-term, world commitments to sustainability and social duty.
Honoring these commitments can rebuild shoppers’ belief, as almost 8 in 10 US shoppers who’re answerable for foods and drinks procuring of their households suppose large meals corporations are extra involved about earnings than sustainability. Moreover, almost 7 in 10 US shoppers agree it’s doable for manufacturers to assist social causes with out getting political.
What comes subsequent for CPG manufacturers?
BJ Pichman, Principal Advisor
For CPG manufacturers, the long run might really feel a bit foggy, however one factor is evident: staying on model amidst a divided post-election panorama would require finesse. Messaging priorities might have to be rigorously adjusted to maintain model values regular and constant, whilst public sentiment shifts. Happily, the teachings realized throughout COVID-19—about agility, empathy, and listening intently to shoppers—will probably be invaluable in these unsure instances. Flexibility and responsiveness will probably be key to navigating the shifting panorama of matters and points that will floor unexpectedly. Bear in mind, staying the course typically requires small changes. Having a transparent imaginative and prescient of all the panorama will probably be important to creating the very best choices.
Manufacturers that may avoid divisive messaging and keep above the fray have the potential to face out as regular, dependable presences. This method doesn’t imply abandoning values or ideas however somewhat amplifying messages that convey folks collectively, encourage nostalgia, or have a good time shared experiences. By leaning into common themes like household, consolation, and wellness, manufacturers can provide a way of normalcy and stability that buyers are craving. These small shifts in messaging can assist CPG corporations act as a beacon to all shoppers—reminding folks of what they love and belief about these manufacturers, even in difficult instances.
Now, greater than ever, CPG manufacturers have the prospect to be voices of calm and unity in a world that feels turbulent. Staying delicate to public temper, whereas staying true to core values, will probably be a successful technique for manufacturers in search of to keep up relevance, belief, and loyalty in a post-election period.
In case you have questions on what comes subsequent and what a second Trump Presidency will imply in your model, that’s the right time to get in contact with Mintel Consulting to find how the workforce can provide a custom-made view of your online business, advertising and marketing, and innovation technique.
