What consumer-packaged-goods companies can learn from disruptor brands

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From the store shelf to the digital aisle, the state of play in the consumer-packaged-goods (CPG) market is being reorganized. CPG growth began to slow dramatically in 2022. Today, in the categories that account for nearly 85 percent of retail sales value in the sector, growth continues to decelerate, and in most categories it’s slowing rapidly. But there is still growth to be found, and across categories, much of it is being driven by new entrants rewriting the rules: disruptor brands.

These brands—defined by their rapid, outsize growth—are connecting deeply with consumers and reshaping the competitive landscape. While the emergence of smaller brands began before the pandemic, their presence has accelerated in the past two to three years. In categories ranging from salty snacks and beverages to vitamins and supplements, disruptors are accounting for a growing share of total category expansion. Incumbents, long buffered by their scale and long-term brand equity, are now struggling to keep pace with changing consumer expectations and faster-moving competitors.

Disruption in CPG falls into five distinct archetypes based on category size, maturity, and the speed at which innovation occurs: limited disruption, nascent disruption, scaled disruption, intense disruption, and transformative disruption.  Incumbent CPG brands can close the growth gap—but only if they shift their mindset and operating model. 

Six hallmarks of a disruptor brand.  Together, these archetypes show that disruption is not a uniform phenomenon. It takes different forms depending on category size, maturity, and innovation speed. That said, across categories, six traits consistently distinguish disruptor brands and explain how they achieve outsize growth.

1. Bold and culturally relevant messaging: Disruptors reach consumers with a bold, original, or novel message on social media and across digital platforms, leaning into cultural conversations to stay relevant.
2. Unique physical sales strategy: Disruptor brands are making their mark in the physical world too in unexpected ways—whether as one of the few branded options on a shelf dominated by private labels; through booths at consumer events, concerts, or conferences; via immersive pop-up experiences; or even in airports with experiential points of sale. Whatever form their physical presence takes, the key for disruptor brands is to engage consumers and seamlessly connect the in-person experience to the broader purchase journey—through tactics such as email sign ups, QR code activations, loyalty program enrollment, or social-sharing incentives. Doing so helps break through the noise of the crowded CPG landscape and build authentic, enduring connections with consumers.
3. Distinctive product innovation: At the product level, disruptors continuously experiment with new and creative formulations, packaging, form factors, and benefit combinations, often with a relentless focus on cocreating with communities. This constant iteration keeps them closely aligned with emerging consumer preferences. Incumbents can use AI-driven insight platforms, digital prototyping, and small-batch production to test and refine new formulations, packaging, and benefits at speed—while actively cocreating with consumer communities through social listening and feedback loops.
4. Digital fluency: A digital-first DNA underpins everything disruptors do. They leverage digital channels for marketing, customer acquisition, and community building, relying heavily on social, direct-to-consumer (D2C), and influencer ecosystems to reach and retain their audiences.
5. Speed and agility: Disruptors are agile, able to rapidly react and adapt to consumer and market signals and to nimbly change direction on product, pricing, and marketing. They remain open to disruptive partnerships and collaborations that help them move faster and stay ahead.
6. Consumer-centric purpose: Finally, the purpose of disruptor brands is clear to consumers. Each meets an unmet or deeply felt need from consumers, anchored by a mission that aligns closely with consumer values.

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