Banking & Financial Services

As Consumer-Packaged Goods (CPG) firms continue to navigate economic pressures and rising consumer expectations, pricing has become key to remaining competitive and profitable.  

Increasing costs, dwindling consumer demand, and the push for transparency and sustainability has reshaped the industry’s pricing landscape.  

Read on to understand why CPG brands are sharpening their focus on pricing, what we can expect in 2025, and how brands can prepare to meet these emerging challenges and opportunities effectively.   

Reach out to discuss this topic in depth. 

Why are CPG brands focusing on pricing?

Although many CPG companies saw revenue growth in 2023, largely through price hikes, this strategy strained consumer demand, impacting brand loyalty. Major players like Nestlé, PepsiCo, and Unilever have already started revising and refining their pricing strategies. They are also investing in technology solutions to analyze consumer behavior and market trends, allowing them to adjust prices more precisely and effectively in response to market conditions. 

Today’s consumers are increasingly value-driven, seeking brands that prioritize transparency and balance cost with quality. To thrive in this climate, CPG brands are adopting pricing strategies that are adaptive and segmented, ensuring affordability for cost-conscious customers while preserving profitability. 

What to expect in 2025? 

1. Economic pressures

Inflation in the US is projected to ease to slightly over 3%, but supply chain disruptions are expected to persist into 2025, hitting raw material costs, labor and logistics. CPG brands are expected to adopt tiered or value-based pricing strategies to combat this. This method includes offering affordable options alongside higher-end products, enabling brands to appeal to a diverse consumer base. While inflation may force some price increases, brands will aim to provide additional value—through better product quality or bundled packages—to sustain consumer trust and spending. The primary goal will be to strike a balance between profitability and engaging price-sensitive shoppers. 

2. Increased focus on personalization

As advanced technologies continue to influence pricing strategies, brands are shifting their focus toward personalization driven by real-time data insights. Shoppers will see more custom experiences, like special discounts, unique offers, value bundles, and individual subscription plans aimed to build loyalty. This focus on personalization will not just improve customer satisfaction but will also help brands be noticed in a competitive market. 

3. Rise of private label brands

Retailers are increasingly developing their own private label brands to meet the growing demand from price-conscious consumers. Walmart’s Bettergoods and Target’s Dealworthy both launched in 2024 and were the two fastest-growing private-label brands of that year. As more shoppers seek quality alternatives at lower price points, there is a notable shift toward private label brands. 

4. Focus on loyalty programs amid dwindling brand loyalty

CPG brands, especially grocery and beauty segments, are doubling down on optimizing their pricing and product experience strategies, ensuring they remain attractive to value-driven customers. Customer loyalty programs would become a key lever to boost retention by offering discounts, exclusive products, or services that increase the switching cost for loyal customers 

How can CPG brands achieve their 2025 pricing goals?

To unlock the potential of advanced pricing models and meet their 2025 aspirations, CPG brands must make focused, strategic investments. Here’s how they can position themselves for success: 

1. Embrace data-driven decision making  

A robust data foundation is critical to contemporary pricing initiatives, so brands should leverage customer data and analytics tools that track consumer preferences in real-time. These tools help the brands to keep track of shifts in demand and control stock and prices more effectively, in real-time. With the use of predictive analysis, it would be possible to make the appropriate decisions before they happen, establishing the grounds for the pricing. 

2. Adopt dynamic pricing and real-time adjustments

Dynamic pricing models are set to dominate the industry in 2025. By leveraging real-time data, brands can adjust prices instantly based on demand fluctuations, consumer trends, and market shifts. Firms that use more dynamic models would have a competitive edge, adjusting prices to maximize revenue. 

3. Utilize Artificial Intelligence (AI) for personalization and demand forecasting

Firms will increasingly utilize AI-led demand forecasting tools to ensure that consumers do not face out of stock situations. Brands will also leverage personalized pricing to offer consumers tailored discounts, and promotions which correspond to the individual needs of consumers. 

4. Prioritize profitability over volume

CPG firms are moving from the traditional volume-centric sales approach to one that is increasingly focused on profit-based pricing. This makes it more critical to boost margins through improved execution of current price-change strategies, especially for high-end products. Tiered pricing in brands will be incorporated to appeal to different segments of customers, and both price increases and added value will ensure that consumers will feel that they get more than just a product. 

5. Address gaps in pricing models across channels

Brands are struggling in achieving flexible, transparent, real-time pricing across digital and physical channels. To overcome these challenges, firms are investing in integrated technology solutions which leverage data across channels. With the right tools and processes, brands can enhance their pricing strategies, achieving a consistency that aligns with 2025 goals. 

6. Partner with service providers and choose the right delivery model – SaaS vs. AIaaS

Partnering with service providers will play a key role, as CPG brands work to put in place cutting-edge pricing solutions. Firms that focus on AI and predictive analytics tools for flexible pricing will offer the tech and know-how brands need to refine their pricing plans. These partnerships let brands tap into new tech without the big costs of building it themselves and flexibility to choose between traditional SaaS vs customized AIaaS models. Additionally, providers can bring insights on market shifts, competitive analysis, and consumer behavior. This gives brands the power to make choices about pricing based on data, which can help them reach their long-term aims. 

Conclusion 

CPG brands should ensure that their pricing strategies are flexible enough to adjust to market conditions, while maintaining profitability by focusing on the right mix of data, technology, and strategic sourcing. The future of CPG pricing is about more than just numbers—it’s about creating value at every price point, meeting consumer expectations, and building long-lasting brand loyalty. 

If you found this blog interesting, check out our recent blog focusing on Sustainability In Retail And CPG: A Reactive Approach Will No Longer Work | Blog – Everest Group, which delves deeper into another topic relating to CPGs. 

We are actively tracking the evolution of revenue growth management strategies and their impact on the future of the Retail and CPG sector. To discuss the latest trends and their implications for CPG brands, retailers, technology vendors, and service providers, feel free to reach out to Abhilasha Sharma (abhilasha.sharma@everestgrp.com) or Shraddha Pandey (shraddha.pandey@everestgrp.com). 

Banking and Financial Services (BFS) firms are increasingly seeking providers that offer integrated front- and back-office solutions to optimize costs, streamline operations, and enhance customer experiences. This provider consolidation trend promotes greater accountability, accelerates time-to-market, and improves overall customer satisfaction. Traditionally distinct front- and back-office service providers are evolving, with many providers expanding their capabilities to offer seamless end-to-end solutions across the entire value chain.

This report explores the landscape of providers that have successfully integrated their offerings across key banking domains such as retail banking, lending, and payments. Some of these providers have secured large-scale, integrated deals through long-term client relationships, while others are capitalizing on opportunities within the small-to-mid market segment, particularly among FinTechs, where demand for comprehensive solutions is rapidly growing. Regionally, this shift toward integrated service models is most prominent in North America, the UK, and the APAC region, where BFS enterprises are embracing these offerings to stay competitive and agile in a dynamic market.

• Experience-Driven Integrated BFS Operations PEAK Matrix® Assessment 2024

  

  What is in this PEAK Matrix® Report

  In this report, we analyze 18 leading providers featured on the Experience-driven Integrated BFS Operations PEAK Matrix^® Assessment 2024.

  Scope:

  • Geography: global
  • Industry: market activity and investments of 18 providers providing front-to-back integrated services within the BFS industry
  • Services: integrated BFS operations

  Contents:

  In this report, we:

  • Assess 18 integrated BFS BPS providers
  • Position the providers on Everest Group’s PEAK Matrix^® framework as Leaders, Major Contenders, and Aspirants
  • Compare providers’ key strengths and limitations

  READ ON

What is the PEAK Matrix®?

The PEAK Matrix® provides an objective, data-driven assessment of service and technology providers based on their overall capability and market impact across different global services markets, classifying them into three categories: Leaders, Major Contenders, and Aspirants.

LEARN MORE ABOUT Top Service Providers

Retail media networks (RMNs) are transforming the way retailers and consumer packaged goods (CPG) brands collaborate in the digital advertising space. Retailers are now seizing the opportunity to monetize their digital assets, while brands are eager to invest in retail media networks (RMNs) to engage consumers directly at the point of sale. 

Just this year, Lowe’s rebranded its network with a simplified name—Lowe’s Media Network—and expanded its channels to include email, in-store audio, paid search, and app-based ads. 

Meanwhile, Macy’s integrated artificial intelligence (AI)-powered technologies to its RMN, to improve post-purchase engagement through its partnership with Rokt. Similarly, Albertsons Media Collective is working with commerce media platform Criteo to extend its in-store media offerings for advertisers. 

With so much evolution in the sector, our analysts have looked into what the future holds for a space that is currently incredibly lucrative… 

Reach out to discuss this topic in depth. 

What exactly does all this mean, and how are brands and retailers making money from it? 

A retail media network (RMN) is an advertising platform run by a retailer , allowing brands to purchase ad space on its website, app, and other digital properties. The key appeal is the retailer’s use of first-party customer data, enabling precise targeting, which is often more effective than traditional digital marketing channels. 

For brands, RMNs are a goldmine. They offer a way to target consumers with highly relevant ads while they’re actively shopping, increasing the likelihood of a purchase and boosting return on ad spend (ROAS). This combination of contextual relevance, first-party data, and seamless integration with the shopping experience, gives RMNs a strong edge over traditional marketing platforms. 

Why are RMNs growing while traditional digital marketing still exists? 

There are several reasons behind the rise of retail media networks: 

• Privacy-First Advertising: With regulations like general data protection regulation (GDPR) and the phase-out of third-party cookies, RMNs provide a privacy-compliant way for brands to connect with their audiences using first-party data 

• Seamless Shopping Integration: RMN ads appear while consumers are already in buying mode—unlike traditional ads that interrupt browsing or social media activities 

• Enhanced Measurement and Attribution: RMNs offer closed-loop attribution, enabling brands to see exactly how their ads drive purchases, providing transparent and accurate ad performance data 

• Retailer Competitive Advantage: Retailers with strong loyalty programs and large online presences control valuable first-party data, giving them an edge in the advertising space 

If it’s so amazing, why isn’t every retailer running their own RMN? 

Despite the many benefits, only top-tier retailers like Amazon, Walmart, Target, and Kroger have been able to successfully manage profitable RMNs. Even for retailers with large customer bases, several challenges arise: 

• Data Privacy and Security: Handling large volumes of first-party data comes with immense responsibility. Retailers must adhere to regulations like GDPR and the Californian Consumer Privacy Act (CCPA), while avoiding breaches that could harm consumer trust 

• Ad Fraud: Like any digital advertising channel, RMNs are vulnerable to fraud. Robust fraud detection tools are essential to maintain advertiser trust and campaign performance 

• Balancing Ads and User Experience: Too many ads can disrupt user experience, so retailers need to strike a careful balance between monetizing traffic and maintaining a smooth shopping journey 

• Technological Infrastructure: Building a scalable RMN requires significant investment. Not all retailers have the technology stack or resources to develop such platforms without external support 

 Can outsourcing help? Where and how? 

For retailers lacking in-house expertise, outsourcing can be a powerful solution. Case in point, Macy’s partnership with Rokt, which brought in AI capabilities without the need for internal development. 

Key areas where outsourcing can help include: 

• Technology Development: Building the right tech stack can be time-consuming and expensive. By outsourcing to technology vendors or global system integrators (GSIs), retailers can launch their RMNs more efficiently 

• Ad Operations: Managing ad inventory, targeting, and performance measurement can be handled by specialists, allowing retailers to focus on their core operations 

• Data Management: Safeguarding and analyzing first-party data requires expertise in privacy and compliance, which can be outsourced to trusted partners 

Global System Integrators (GSIs) are instrumental in helping retailers scale their RMNs by providing the technical backbone and operational expertise required to do so. 

Retailers can also outsource day-to-day operational tasks, such as managing advertiser partnerships or designing creative ad formats. This allows them to scale faster without having to build large internal teams. 

The future of retail media networks: 

As RMNs evolve, they represent one of the most exciting opportunities for retailers and CPG brands to enhance customer engagement and drive sales at the point of purchase. Below are key considerations for retailers and brands: 

• People: 

• • Tech-driven upskilling: Technology vendors and service providers will play a key role in upskilling the teams at retailers and brands, helping them deepen their technical and functional understanding of RMNs and its evolving trends 

• • Need for deeper partnerships: As the number of RMNs grows, brands with stronger connections with retailers will gain a competitive edge by securing better visibility and premium placements within retailers’ advertising properties  

• Process: 

• • Customer Experience : Retailers will prioritize non-intrusive ads that enhance the customer journey. RMNs will shift from basic product placements to immersive, personalized, data-driven ads 

• • Data management and privacy: As concerns over data privacy grows, transparency in data collection and usage will become crucial. Retailers and brands will need to communicate clearly about how consumer data is handled, building trust, and fostering acceptance of ads in retail environments 

• Technology: 

• • Closed-loop reporting: Brands will demand closed-loop reporting that is detailed, unambiguous, near real-time, and continuously accessible, providing insights that drive better marketing outcomes 

• • Integration and cybersecurity: Tech solutions must integrate ads seamlessly into retail environments, ensuring consistent delivery across online, in-store, and mobile platforms, while prioritizing cybersecurity and data protection 

In a nutshell, the future of RMNs will see brands and retailers working together more strategically, making every touchpoint a moment to connect and convert. 

Technology and service providers will act as key partners, connecting advanced RMN technologies with retailers and brands. They will help teams understand and utilize these tools effectively, enabling optimized targeting and seamless integration. 

We are actively tracking the evolution of retail media networks and their impact on the future of the Retail And CPG sector. To discuss the latest trends and their implications for CPG brands, retailers, technology vendors, and service providers, feel free to reach out to Manu Aggarwal, Abhilasha Sharma, or Aakash Verma. 

If you found this blog interesting, check out our blog focusing on Composable Commerce: For Composing The Best-of-Breed Customer Experience, which delves deeper into another topic worked on by our HLS service line. 

Join us at NRF ’25 to connect with our retail and CPG leaders. We look forward to exploring the insights and strategies shaping the industry. 

For more information regarding NRF ‘25, visit website and their LinkedIn page.