For decades, scale brought success to Consumer Products (CP) companies. They built mass-market brands that people trusted, believed in and even loved. They became part of the fabric of our daily lives. And they did it globally. But the world has changed – and many big CP companies are facing a relentless drift toward irrelevance.

We believe CP companies can thrive again, and this report explores what that will take. At its heart is a simple but urgent choice: continue defending what’s slipping away, or act boldly to rebuild relevance with the three audiences that matter – consumers, customers (Retailers) and capital markets. That means restoring belief in your brands, your strategy, and your ability to lead, so you can shape your future with confidence Because in this environment, an optimistic belief in the continuing value of mega-brands is not a by-product of success; it’s the starting point.

Read the report to understand the risks and opportunities facing CP companies as they navigate this new terrain. We examine what we call Negative Drift — a gradual but relentless erosion of confidence, both internally and externally. For many CP companies, decision-making is slowing, innovation is stalling, and belief in the brand’s ability to lead is fading. In their response, many companies are falling back on Defensive Scale by stretching their portfolios, investing in owned channels or driving cost efficiencies — moves that aim to preserve their position rather than create new value.

But sustainable growth comes from driving volume, and most companies are achieving growth through pricing, which is a model that is not viable in the long-term.

And with only a handful of CPG companies offering better returns than the 10 year U.S. Treasury Bond, maintaining relevance with consumers, customers and capital markets becomes a critical strategy.

However, not all companies are retreating and assuming a defensive posture. Some are acting with what we call Disruptive Optimism – a shift in mindset and business practice that powers bold, focused investment. These companies are simplifying their portfolios; accelerating their investment in technology, so they can modernize their enterprise and make it fit for the future; focusing on growth and productivity; and engaging differently with consumers, their customers (retailers) and the capital markets.

These are the companies that are better positioned for success, and at a time when it is only getting tougher to stand out. When 78% of retailers believe that only one mass market brand will remain on their store shelf, CP companies will need to be clear on what it takes to be the one that’s chosen. Growth and market share in the right categories are fundamental, but so is being a strategic partner and a source of shared value.

Are you ready to shape the future with confidence? Our EY Consumer Products professionals are here to help you create extraordinary relevance with consumers, customers and capital markets. Below, learn more about our relevant services and meet our team.