According to McKinsey and Co., “the consumer goods industry was an investor darling for decades, delivering a reliable formula of more than 5% growth at healthy, stable margins.” That changed in the last decade, however, as top-line growth declined due to slowing population growth and the fragmentation of consumer attention.

This market will continue to be tied to the economy and impacted by the state of inflation. But through the lens of total promo sales, consumer products has held steady at around 2% of the market, which translates to over $520 million in revenue for distributors.

And with new brands and SKUs popping up all the time – most of which fall into what the industry calls the “better-for-you” category – there are definite trends and niches worth targeting that can deliver results.

For example, younger generations are experimenting with sobriety more than ever before, and in response, drink companies are adding varieties of nonalcoholic beer, wine and spirits, while functional beverages like kombucha and seltzers have added adaptogenic herbs, CBD, probiotics and plant-based energy to their formulas. Millennials and Gen Z buyers are also making clean beauty one of the fastest growing sectors, and there’s strong demand for ingredients that are not only safer for humans but also less toxic to the environment.

The bottom line for distributors intent on growing in this market: It’s well worth seeking out supplier partners who put their money where their mouth is when it comes to cleaner products, safer ingredients and transparent business practices.