The 2026 Consumer Analyst Group of New York (CAGNY) annual conference in Orlando, Florida, concluded this week. The conference is a week-long gathering of more than 25 major consumer products brands, financial analysts, portfolio managers and other key players in the industry.
Under the current backdrop of a challenging consumer environment, the conference provided an opportunity for executives to share financial results, present long-term growth plans and lay out strategic visions for the coming year(s). Members of the RSM consumer products team attended the conference and identified several themes from the presentations and discussions that will influence the industry and middle market consumer goods and food companies in the months and years ahead.
Meeting the customers where they are
Being in the right place, at the right price, with the right—and many times—bold flavors, and with the right packaging, has never been more important. Expect further investments in pricing and promotions to improve affordability concerns and drive volume. Many presentations discussed innovating packaging options that emphasize easy on-the-go options and are flexible for consumers’ pantry sizes. Lastly, premium products are driving organic growth for many customers with a planned shift in mix to higher-end customers.
Functional nutrition
Consumers are eager for more nutritional dense product offerings with a higher emphasis on protein, fiber and gut health, while not compromising on clean ingredients and taste that will maximize the nutritional benefits from snacks and meals. The continued impact of GLP-1 drugs on consumption levels and basket sizes is forcing companies to emphasize the health and wellness benefits of products. That’s not to say occasional indulgences will not continue to attract customer interest, however, incorporating nutritional benefits within these products will further drive volume.
Artificial Intelligence and technology enabled transformation
AI, and the use of technology, is here to stay and those that can maximize the benefits will separate themselves from the competition. Use cases for AI include expediting research and development to shorten product launch timelines enabling faster go-to-market strategies, faster and more efficient marketing and advertising campaigns to target more diverse customers at scale, and the ability to analyze productivity and operational weaknesses. In the coming years these strategies will be table stakes for CPG companies where operating margin expansion is critical to sustained growth.
Financial rigor
Companies must have a disciplined financial framework that manages costs effectively and generates strong operating and free cash flow which will allow companies the ability to further invest in the business through pricing strategies, targeted capital expenditures, and strategic mergers and acquisitions. This allows companies to play offense in an increasingly competitive landscape. Many companies focused on the need to right-size capital strategy to reduce debt levels following years of strategic investments.
Strategic transactions
Companies with strong leverage ratios are now in a position to make strategic bets in the deal market with tuck-in acquisitions that fill either geographic and/or product category gaps, while also divesting brands that are no longer core to their portfolio. A disciplined approach ensures the right fit for acquisitions, stressing the need to integrate quickly is critical to ensure successful transactions.
For middle market consumer brands, agility and a focus on ever-changing consumer preferences for value, health and convenience are keys to sustained long-term growth. Companies that emerge as winners leverage technology and data to accelerate innovation, improve margins and refine go-to-market strategies. With disciplined capital management, middle market companies will position themselves to make strategic investments to compete against larger players.
For more, check out our outlooks for the following sectors: consumer goods, food and beverage, and retail and restaurant.
