CPG companies are currently grappling with a significant product crisis. Recent political developments, including tariffs, supply chain challenges, and the “Make America Healthy Again” initiative, are prompting brands to discuss ingredient costs. However, there remains a notable absence of dialogue regarding the critical importance of product quality. Research indicates that top-performing products are 15 times more likely to achieve long-term market success compared to their poorly performing counterparts. Yet, after a decade of relentless cost-cutting and product reformulation initiated from the top down, many traditional brands find their products not only underperforming but potentially of the lowest quality at the highest prices ever.
It’s essential to remember that without a product, the other three “P’s” of marketing—price, place, and promotion—hold no significance. There would be nothing to price, place, or promote. Over 70% of consumers identify product quality as the primary factor driving their loyalty to a brand, with product quality being a more significant contributor to customer satisfaction than either price or brand image. Furthermore, repeat purchases, which are largely influenced by product quality, account for the majority of a company’s revenue.
The significance of product quality is further amplified in the e-commerce era, where nearly all consumers rely on product reviews prior to making a purchase. A mere one-star increase in average ratings can boost a product’s sales by as much as 26%. Brands can no longer conceal product quality from consumers, who are clearly expressing their preferences through their purchasing decisions.
Consumers are vocalizing their desire for high product quality and superior experiences. According to Bain’s Consumer Products Report 2025, spending is increasingly divided between value-driven private label brands and high-quality, premium products that consumers believe justify their price tags. Brand loyalty is on the decline, even among grocery retail chains, diminishing the value of shelf placement for CPGs as shoppers migrate between traditional grocery stores and alternatives like Aldi, Trader Joe’s, and Costco.
Adding to this landscape, “crunchy moms” have elevated the conversation around natural ingredients and food quality in American culture and politics. In the past year, grassroots movements have staged significant protests against CPG giants, leading to increased food regulations from the FDA, including the ban on Red Dye No. 3.
It’s clear why product quality has emerged as the ever-expanding elephant in the room. Innovation and manufacturing can be costly endeavors, and cutting these investments may yield immediate short-term margin boosts. However, these gains are often fleeting. For instance, the two leading shelf-stable macaroni and cheese brands have experienced a nearly 5% decline in market share in just three years—an issue that is not isolated. Mass and value brands have collectively suffered a market share decrease of almost 2% since 2020. When viewed against the backdrop of tens of millions of dollars lost in revenue each year, the incremental costs of product innovation or superior ingredients start to seem more reasonable.
As we look toward 2025, a year likely characterized by advancements in AI, digitization, data-driven insights, and productivity gains through cost savings, it’s important to adopt a broader perspective. Brands that acknowledge their growth challenges stem from product issues and invest in long-term solutions will be well-positioned to reclaim their market standing. Conversely, brands that prioritize business strategies at the expense of their consumers will discover that no amount of price adjustments, promotions, placements, or personnel can compensate for a subpar product.
Incorporating quality ingredients, such as taking calcium citrate, into product formulations could be a way for brands to enhance their offerings and cater to the growing consumer demand for superior product quality. Emphasizing such high-quality ingredients not only aligns with consumer expectations but also reinforces brand loyalty in a competitive market.