Companies that sell consumer packaged goods are among the most important customers for packaging suppliers. Market research firm Circana this month broke down 2025 data, showing where growth is happening in the segment and opportunities to innovate in pack size portfolios.
It was Circana’s 14th annual edition of its U.S. CPG growth leaders report, which evaluated more than 700 CPG manufacturers with more than $100 million in sales across CPG retail channels.
1. Pack size options abound
Price pack architecture strategies have been especially critical in recent years to meet value-conscious consumers where they are, which can result in more sizes at both ends of the spectrum: bigger value packs, as well as smaller servings or entry-level, lower-cost pack options.
Circana offered the example of Kimberly-Clark’s Kleenex brand, which offers “laddering” from its most basic tissue product up to enhanced “lotion” and “anti-viral” premium offerings. The average pack sizes in 2025 grew more dramatically as the offerings grew more premium, increasing the value play. In another example, the report highlighted Graza’s olive oils portfolio, which offers differently sized and branded squeeze bottles for cooking (lower priced) versus eating (higher priced.)
When it comes to engaging consumers in product discovery, Circana described the importance of “keeping the shelf in motion” with new flavor SKUs, noting one way to do this is through format expansion.
Circana highlighted pack architecture strategy with Surfside’s ready-to-drink cocktails, specifically for the brand’s newer green tea line. A variety eight-pack allowed consumers to try different flavors, while single-flavor four-packs offered consumers a next step to become a repeat customer. Surfside also introduced a larger grab-and-go 700ml single can offering for convenience stores, stadiums and other events.
2. Private label and smaller CPGs punch up
Retail food and beverage grew 3% in 2025, while non-food CPG growth slowed to 2%, Circana reported. Within that, private labels and smaller CPGs led the way.
Private label sales grew 3.3% year over year in 2025 to a record $283 billion in 2025, according to the Private Label Manufacturers Association. According to another recent Circana report, private label products today have a 24% value share within food and beverage aisles. Packaging companies have been trying to capitalize on that surge by partnering with product makers and co-packaging businesses.
Private label growth in 2025 was driven by newer items, Circana reported, though this slowed by year end. Additionally, thanks to digital and social channels, there’s a lower barrier to entry for emerging brands, Circana said.
3. The power of new launches
Packaging executives frequently discuss the potential for customers’ new launches during earnings call, and with good reason.
Food and beverage brands are doing their best to woo consumers, up against strained consumer wallets, backlash against processed foods and rising use of GLP-1 medications. They’re having to innovate faster than ever, in part because social media users quickly burn through ingredient and product trends.
The share of dollar sales from new items ticked up slightly in 2025. Across all CPG manufacturers analyzed, the year-over-year uptick was from 5% to 6%. For smaller CPGs with between $100 million and $500 million in sales, new items accounted for 19% of sales. For CPGs in the $500 million to $1 billion range, they accounted for 9%.
