The CPG growth playbook isn't underperforming- it's structurally broken.

McKinsey & Company's State of Food & Beverage report (April 2026), drawing on a global survey of 15,000 consumers across ten markets, lays it out clearly:

Since 2023, TSR for the world's largest F&B CPG companies has declined ~7%, while the S&P 500 grew 9%, Volume growth is stuck below 1% annually, 61% of consumers say price matters more today than two years ago

But this isn't just a pricing crisis. It's a relevance crisis.

Private-label brands are no longer the ‘cheaper alternative’- consumers now rate them comparable or better on quality, value, and variety. Small, independent brands (under $100M in sales) made up just 13% of the US F&B market in 2021 but drove 35% of category growth by 2025. Why? Consumers choose them for superior functional benefits- not habit, not convenience.

Meanwhile, 57% of consumers rank healthiness among their top three purchase factors- the single largest increase of any attribute in two years. The health aspiration is real, even if the say-do gap persists.

The report's core argument resonates: incumbents need a dual agenda- reshaping portfolios at the board level AND rebuilding performance across the organisation through product superiority, smarter affordability design, funnel rebuilding among younger consumers, and AI-funded reinvestment into growth.

The consumer hasn't stopped spending. They've stopped settling!

Source: McKinsey & Company-State of Food and Beverage: How CPG Leaders Can Renew Growth (April 2026)