In mid-March, market and consumer insights specialist Circana released its annual Growth Leaders list, a ranking of hundreds of publicly and privately owned consumer packaged goods companies. The companies in the rundown ranged from those pulling in yearly sales of $100 million, up to $60 billion. In addition to the impressive numbers of the players in snack production, bakery products, health and wellness items, and other areas, it’s a fascinating look into what consumers want, how their preferences change, and what attracts their attention.

“Through continuous innovation and consumer engagement, these leading companies successfully struck a balance by offering consumers the right blend of benefits, enjoyment, and value,” remarks Sally Lyons Wyatt, global executive vice president and chief CPG and foodservice advisor (by the way, if you missed her amazing presentation during Snack Food & Wholesale Bakery’s recent “Current Trends in Colors and Flavors” webinar, you can still catch the event on demand here).

Here are some of the key findings:

• Inflation is still keeping prices sky high
• Volumes are declining but showing signs of improvement
• CPGs with sales between $500 million and $1 billion gained share, while companies under $500 million pitched in less to overall sales.

One question that might occur to companies looking to duplicate the high-ranking growth of these players, and perhaps make an appearance on next year’s list: what winning characteristics did all these growing companies share in 2023? According to Circana’s report, these practices included:

• Consumer engagement, through a number of different avenues
• Continuous innovation and newness
• Division between premium and value offerings
• Use of artificial intelligence to improve operational efficiency

Fast forward to today, where candy and snack manufacturers are giving a frighteningly long list of options that puts the trick or treat offerings of yesteryear to shame. In addition to longtime favorite sweet treats, producers now offer a range of savory snacks and better-for-you offerings that even health-conscious parents won’t find scary. That’s It, for example, offers its Spooky Fruit Bites, which features 40 fun-size no-sugar-added fruit bars (half banana, half mango) in a festive pack. Hershey’s SkinnyPop savory snack brand sells its vegan, non-GMO popcorn in a 12-bag pack, complete with friendly monsters on the front. Also, chickpea snack maker Hippeas recently launched a limited-edition multipack of its Vegan White Cheddar Puffs, with spooky ghosts adorning the 12-count bag.

It’s likely that your company isn’t quite at the level of some of the highest-ranking companies on Circana’s 2023 list—beverage giant Constellation Brands, was the leader, with big movers Coca-Cola, Molson Coors, L’Oreal, and P&G rounding out the top five. However, just because your annual revenue isn’t in the same stratosphere as these behemoths doesn’t mean your organization can’t take a page from the big players’ handbook and use similar strategies to fuel your future success and growth:

• Connect with consumers and give them what they want. Companies on the list in the less-than-one-billion set (including Olipop, Feastables, and Idahoan Foods) set found growth fueled in part by social media efforts.
• Find ways to innovate. U.S. shoppers still want familiar items, but new products, variations on existing lines, and other twists can attract consumer attention.
• Offer a range of price points. Most shoppers are aware of their spending levels when they set out to buy snack and bakery products, but they occasionally seek to splurge on higher-end treats; consider offering both.
• Use AI intelligently. Harnessing artificial intelligence can be fun and amusing (or sometimes terrifying—I won’t share the pics of me concocted to look like Britney Spears in her “Oops! I Did it Again” video) but when used to boost your business, it can be a powerful weapon in the battle to boost your bottom line.

If you’d like to hear more about the movers and shakers among CPGs in 2023, you can catch the Circana two-part webinar here. Who knows—if you adopt some of the wisdom and practices of those forerunners, you could find your snack and bakery company on the list someday soon. SF&WB