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The Internet of CPG Things: What Consumer Products Marketers Need to Know Now

eMarketer Report

By: eMarketer

Published: May 03, 2016

Jump to: Executive Summary | Table of Contents | List of Charts

Executive Summary

The internet of things (IoT) is already beginning to change how consumers shop and how consumer and packaged goods (CPG) companies do business. The industry is using the IoT to streamline manufacturing processes and supply chain management as it seeks new revenue opportunities. Brands are also exploring ways to build upon these efforts and use the IoT to deliver more personalized customer experiences.

  • Consumer goods companies—including manufacturers of food and beverages, household products, packaged goods, tobacco, personal care, toiletries and cosmetics—have seen early success in supply chain monitoring and inventory management. They are now experimenting with consumer-facing applications to deliver more personalized marketing experiences.
  • By one estimate, CPG manufacturers worldwide spent an average of $41.2 million per company in 2015 on IoT initiatives. Budgets are expected to rise to $67.6 million by 2018. Compared with other industries, this spending is low and is focused primarily on the supply chain.
  • The IoT will have important implications for marketers, who are finding more ways to communicate with target audiences, more data to customize messaging and more ways to enhance user experiences.
  • Mobile devices, radio-frequency identification (RFID) readers and tags, smart packaging, beacons and other sensors will play important roles in the consumer products IoT.
  • Obstacles to wider adoption of the IoT include concerns over security and privacy, a lack of common standards, entrenched industry practices, a gap in data fluency and high costs of entry.

"Most of today’s CPG-related IoT usage is behind the scenes, tracking manufacturing, distribution and inventory. Consumer-facing applications are just beginning to gain traction."

Table of Contents

What Is the CPG Internet of Things?

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Implications for Marketers

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Overcoming Challenges: Building on Experiments

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10 charts are included in the full report:

The Internet of CPG Things: What Consumer Products Marketers Need to Know Now

Ways in Which Their Company Is Using Internet of Things (IoT) Technologies According to CPG Executives Worldwide, April 2015 (% of respondents)

What Is the CPG Internet of Things?

Internet of Things (IoT) Spending Metrics According to Business Executives Worldwide, by Industry, April 2015

Attitudes Toward the Internet of Things (IoT) Among Retailers Worldwide, Aug 2015 (% of respondents)

The IoT in Action

Ways in Which Their Company Is Using Internet of Things (IoT) Technologies According to CPG Executives Worldwide, April 2015 (% of respondents)

Internet of Things (IoT) Spending Share According to CPG Executives Worldwide, by Business Area, April 2015 (% of total)

Implications for Marketers

Areas Where Their Company Uses Marketing Analytics to Drive Decision-Making According to US Marketing Executives, by Industry, Feb 2016 (% of respondents)

Percent of Budget Allocated to Advanced Marketing Analytics According to US Marketing Managers, by Industry, Dec 2015 (% of respondents)

Enhanced Customer Experiences

Attitudes Toward Their Digital Advertising/Marketing Strategy Among US Retail and CPG Brands, 2015 (% of respondents)

Overcoming Challenges: Building on Experiments

Likelihood of Sharing More Personal Info with Apps in Exchange for Select Incentives According to US Smartphone/Tablet Users, April 2015 (% of respondents)

Level of Concern About Retailers Collecting/Using Their Personal Information for Select Activities According to Mobile Device Users Worldwide, March 2015 (% of respondents)

The Data Fluency Gap

Challenges of Using Internet of Things (IoT) Data According to Business Executives Worldwide, Jan 2016 (% of respondents)