The Impact of Consumer Trends on Logistics for CPG Brands in 2025

The New Reality of CPG Logistics: Adapting to Consumer Behavior

Consumer packaged goods (CPG) brands are experiencing a shift in logistics due to changing consumer expectations. The rapid expansion of e-commerce and direct-to-consumer (DTC) fulfillment has forced companies to rethink traditional supply chains. With more shoppers demanding fast delivery and seamless online experiences, brands must optimize warehousing, last-mile delivery, and inventory management to stay competitive.

The North American e-commerce market was expected to reach $1.327 trillion in 2024, with continued growth anticipated through 2029. CPG e-commerce is a key driver of this growth, with online CPG sales accounting for 11% of the U.S. market in 2024. DTC sales climbed to an estimated $212.9 billion in 2023, and forecasts predict $187 billion in brand-owned online stores by 2025.

Legacy logistics models focused on bulk shipments to retail partners. Now, brands must adapt to a landscape where thousands of smaller direct orders require efficient ecommerce fulfillment and order fulfillment software. Omnichannel logistics strategies integrating retail and direct sales have become essential, presenting new challenges such as rising costs, inventory complexity, and last-mile delivery inefficiencies.

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The Omnichannel Shift: Blending Retail and Direct Sales

While retail partnerships remain crucial, the ability to sell directly to consumers is just as important. About 60% of U.S. households are omnichannel shoppers, meaning they frequently switch between online and in-store purchases. To accommodate this behavior, brands must develop flexible logistics systems that balance bulk retail shipments with smaller, direct orders.

To meet this demand, many CPG brands are restructuring their supply chains by:

• Investing in separate DTC fulfillment operations – Some brands establish dedicated warehouses or partner with 3PL fulfillment providers specializing in direct shipping.
• Repackaging products for e-commerce – Traditional retail packaging is being replaced with consumer-friendly formats that are easier to ship.
• Implementing real-time inventory management – Advanced order fulfillment software allows brands to track inventory across multiple sales channels and allocate stock efficiently.

Balancing inventory between retail and direct channels is a challenge. Brands must avoid stockouts while ensuring efficient e-commerce fulfillment. AI-driven inventory management for CPG brands is helping companies forecast demand and optimize stock levels to prevent excess inventory and lost sales.

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Rethinking Warehousing for E-Commerce

Traditional warehouses were designed to handle large shipments for retail distribution. The rise of e-commerce requires a different approach—one focused on processing thousands of small orders each day. This shift is driving significant changes in warehousing for e-commerce brands, including:

• Expanding regional fulfillment centers – Strategically locating inventory closer to consumers helps reduce delivery times and lower ecommerce shipping costs.
• Investing in micro-fulfillment centers – Small, automated urban warehouses allow for faster order processing and local deliveries.
• Increasing automation in warehouses – CPG warehouse automation solutions, such as robotics and AI-driven picking systems, improve efficiency and accuracy.

Some brands are converting retail spaces into "dark stores"—closed storefronts that serve as fulfillment hubs for local deliveries. Others are using 3PL shipping and fulfillment services to manage both bulk and direct orders under the same network.

Efficient warehousing is critical to customer satisfaction. Delays or inaccurate orders can lead to lost revenue and brand loyalty issues. Companies are optimizing order fulfillment strategies to ensure fast and accurate processing while maintaining high service levels.

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The Challenge of Last-Mile Delivery

Last-mile delivery is one of the most expensive and complex parts of CPG logistics. Consumers expect fast, low-cost (or free) shipping, but delivering small orders to individual homes adds significant operational costs. Brands are addressing these challenges by:

• Using AI-driven route optimization – Real-time tracking and route adjustments help minimize delivery times and costs.
• Partnering with gig-economy couriers – Third-party services like Instacart, DoorDash, and Uber provide flexible delivery options.
• Expanding store-based fulfillment – Retailers are converting stores into local fulfillment hubs, allowing for same-day pickup and delivery.

Some companies are testing drone deliveries and autonomous vehicles to further reduce last-mile costs and increase efficiency. While these technologies are still in development, they represent a potential game-changer for ecommerce shipping in the near future.

Delivery speed is a major factor in consumer purchasing decisions. Companies that optimize last-mile delivery for CPG brands will gain an advantage by meeting customer expectations while controlling operational expenses.

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Rising Costs and Complexity in CPG Logistics

The shift toward e-commerce and DTC fulfillment brings financial and operational hurdles. Shipping costs for small, individual orders are significantly higher than bulk shipments, and return rates are increasing. Many brands are adjusting pricing strategies to compensate for these additional costs.

Beyond expenses, CPG distribution challenges include:

• Managing multiple carriers – Integrating different tracking systems and pricing models adds complexity.
• Handling returns effectively – Poorly managed returns can damage customer loyalty and increase costs.
• Implementing sustainability initiatives – Consumers are demanding eco-friendly packaging and carbon-neutral ecommerce fulfillment options.

Sustainable CPG logistics is a growing priority. Many brands are cutting packaging waste, optimizing delivery routes to reduce emissions, and encouraging bulk orders to lower shipping frequency. Balancing sustainability with cost efficiency will be critical for long-term success.

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Opportunities for CPG Brands in 2025

Despite the challenges, e-commerce and DTC logistics present new opportunities for brands. Selling directly to consumers allows companies to collect valuable first-party data, gaining insights into customer preferences and demand trends. This data can be used to:

• Introduce subscription-based models – Regular deliveries provide predictable revenue and enhance customer convenience.
• Offer personalized shopping experiences – Data-driven recommendations and exclusive online promotions strengthen customer relationships.
• Develop unique online-only products – Limited-edition items and customizable offerings drive sales and brand loyalty.

The demand for fulfillment services is rising, and 3PL fulfillment providers that specialize in ecommerce fulfillment are seeing increased interest from CPG brands. Many companies are outsourcing logistics operations to focus on their core business while leveraging third-party expertise.

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Case Studies: CPG Brands Adapting to the New Logistics Model

Several leading CPG brands have successfully adjusted to the evolving logistics landscape:

• PepsiCo launched Snacks.com and PantryShop.com, allowing direct consumer sales. The company quickly built a DTC fulfillment infrastructure and partnered with logistics providers to handle shipping.
• Mars expanded its My M&M’s platform, enabling personalized candy orders. The brand developed a dedicated ecommerce fulfillment system to manage custom, small-batch production.
• Nestlé introduced KitKat Chocolatory online, offering customized KitKat bars. The company created a specialized 3PL shipping network to handle fulfillment for this premium, direct-to-consumer offering.

Each of these brands used logistics innovations and third-party partnerships to build successful DTC models. Their strategies highlight the importance of agility, data-driven decision-making, and consumer-focused order fulfillment.

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The Future of CPG Logistics in 2025

CPG brands that want to thrive in the evolving logistics landscape should prioritize:

• Developing an integrated omnichannel strategy – A seamless logistics system across retail and direct sales improves efficiency.
• Expanding regional and micro-fulfillment centers – Faster deliveries require inventory to be strategically positioned.
• Leveraging automation and AI – Robotics, predictive analytics, and order fulfillment software streamline operations.
• Optimizing last-mile delivery – Adopting alternative delivery methods helps control costs while maintaining service levels.
• Focusing on sustainability – Eco-friendly packaging and carbon reduction initiatives align with consumer expectations and regulatory requirements.

Consumer trends are reshaping CPG logistics rapidly. Brands that invest in supply chain innovation, embrace 3PL fulfillment, and refine ecommerce fulfillment processes will be positioned for long-term success in 2025 and beyond. Get your fulfillment quote today!

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FAQ: Consumer Trends and Their Impact on CPG Logistics in 2025

How are consumer trends shaping CPG logistics in 2025?

Consumer demand for fast, seamless online shopping is driving major changes in CPG logistics. Brands are shifting to ecommerce fulfillment and DTC fulfillment models, requiring efficient order fulfillment strategies, 3PL shipping, and inventory management solutions to keep up with rising expectations.

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What are the key challenges in last-mile delivery for CPG brands?

Delivering small, individual orders is costly and complex. Last-mile delivery for CPG brands faces challenges like high shipping expenses, failed deliveries, and the need for fast fulfillment. Companies are using 3PL fulfillment, AI-driven route optimization, and local micro-fulfillment centers to improve efficiency.

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How can CPG brands improve their warehousing and order fulfillment processes?

Brands are investing in CPG warehouse automation, expanding warehousing for ecommerce brands, and using order fulfillment software to optimize stock levels. Many also partner with fulfillment services and 3PL fulfillment providers to streamline ecommerce shipping and direct-to-consumer logistics.

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What role does sustainability play in CPG e-commerce logistics?

Consumers are demanding sustainable e-commerce logistics, pushing brands to reduce packaging waste, optimize delivery routes, and use eco-friendly materials. Many companies are implementing inventory management strategies that minimize excess stock and lower their carbon footprint.

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Why is omnichannel logistics critical for CPG brands?

With 60% of U.S. households shopping across multiple channels, omnichannel logistics ensures smooth inventory flow between retail and direct-to-consumer sales. Brands using 3PL shipping, ecommerce fulfillment, and order fulfillment software can dynamically allocate stock, preventing delays and stockouts across different sales platforms.