CPG Recession


The goal is to look at large CPG companies to see how they are preparing for a future recession, as well as how certain CPG items such as feminin products and baby items fare during a recession.

Early Findings

  • 74% of US business economists believe the US will be in a recession by the end of 2021.
  • CPG consumers are still showing price-conscious behaviors today that developed in the last recession.
  • In terms of growth after the last recession, private retail brands have shown the most growth, with an 18.5% growth in 2018.
  • Proctor and Gamble does not believe we are headed into a recession and reports that their feminine hygiene products have experienced "high single-digit growth". Another source says this growth was 7% in the last quarter of 2019.
  • Kimberly Clark believes their well-known brands will be insulated from another recession.
  • Kimberly Clark only experienced a 30% decrease in shares after the Great Recession and says that their stock value kept pace with the market ever since.
  • The latest rounds of tariffs are expected to impact manufacturers of baby products.
  • The market for beauty products grew during the Great Recession and it is currently projected to grow by 3% through 2020.
  • Nail product sales actually soared 12% during the Great Recession.
  • Some experts believe the "lipstick effect" will help beauty products remain stable during a recession because people have less money to spend on expensive items like homes and cars, so they tend to spend more on small expenses such as beauty items.

Proposed next steps:

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