The US economy may be in for a new Great Depression, but not every industry is suffering. While most of the so-called "COVID winners" are behemoth tech giants – like Zoom, Amazon and Facebook – there are opportunities even for non-tech entrepreneurs in this brave new world.
Who are the COVID-19 winners outside the tech space? The answer is CPG companies – especially the small ones that have a savvy online presence and haven’t wasted resources with in-store promotions.
Here are the numbers that prove it:
- According to market research firm Nielsen, total US CPG sales increased by $8.5 billion during the 2 week period that ended March 21, 2020 (compared to the 2 weeks prior to that).
- US online shopping apps, like Instacart, Shipt and Amazon saw record numbers of daily downloads in March and April of 2020. These are expected to continue to rise through May.
- 45 percent of consumers are spending more time on social media since COVID hit – driving the purchase of CPG brands that are socially-recommended and not just the large ones on retail store shelves.
Industry experts say that even after covid, CPG won't "return to normal." Indeed, 25 percent of US shoppers say that they plan to continue to shop online more frequently – even when social distancing regulations are relaxed – because it's more convenient and they will want to continue avoiding unnecessary public interactions for safety reasons.
This represents an enormous opportunity for entrepreneurial CPG brands to "get their foot in the door" with consumers. Being the "top recommended" brand on Amazon could soon mean more than getting "in with the buyers" at Whole Foods or Target.