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After a brief uptick in late 2024, the first quarter of 2025 marked a return to headwinds for the top 25 global consumer products companies (selected based on 2024 revenue, category/geographic balance, and information availability). Organic revenue growth for this group slowed to 1.6% compared with the same period in 2024. It was the lowest growth rate in more than three years, reflecting moderating price growth (2.4%) and negative volume growth (−0.8%), according to our quarterly analysis of the consumer products sector’s performance.
Looking across subsectors, performance varied significantly. Food remains the most challenged, with sharply declining volumes resulting in negative top-line growth and compressed margins. By contrast, the nonalcoholic beverage businesses we track continued to outperform, achieving robust pricing growth and positive volume results. Alcoholic beverages saw moderate price-driven growth despite significant volume declines. Personal care and household showed mixed performance, with only limited signs of volume recovery.
Those facing volume headwinds pointed to muted consumer sentiment, inflation concerns, and the ongoing practice of trading down—particularly in the US and among lower-income segments. Distribution missteps and unfavorable seasonality were also frequently mentioned as challenges. By contrast, firms that outperformed credited their investments in marketing and innovation as well as their strength in emerging markets.
What’s clear: Volume-led growth continues to be elusive, and pricing power is no longer a reliable fallback. With tariff risks rising and consumers trading down, the path forward demands a more proactive stance. Leaders will act swiftly to reactivate recession playbooks and manage the near term while also using this period of turbulence to make bold moves and pull ahead. As we detail in our Consumer Products Report 2025: Reclaiming Relevance in the Gen AI Era, the critical moves include repositioning portfolios to take advantage of market tailwinds, reshaping supply chains for flexibility, and redefining cost agendas for productivity.
First published in junho 2025