The CPG Guys Podcast

Episode: 2025 Review and 2026 Predictions with NielsenIQ's Sherry Frey, Anna Mayo, Chris Costagli & Andrea Binder

Date: December 6, 2025
Host: Peter V.S. Bond (Sri Rajagopalan absent) Guests:

• Sherry Frey (VP, Total Wellness, NielsenIQ)
• Anna Mayo (VP, Beauty Vertical, NielsenIQ)
• Chris Costagli (VP, Food & Beverage Thought Leadership, NielsenIQ)
• Andrea Binder (VP, Pet Category Insights, NielsenIQ)

Episode Overview

This episode brings together four top NielsenIQ experts to review the trends, disruptions, and consumer shifts that defined 2025 across wellness, beauty, food & beverage, and pet care. Host Peter V.S. Bond leads the discussion on not only what brands and retailers learned this year, but also what to expect for 2026. Key topics included the rise of DIY health, digital’s growing impact on shopping behaviors, product transparency, the evolving role of GLP-1 drugs, and shifts in category-specific consumer priorities.

Key Discussion Points and Insights

1. Wellness in 2025 and Beyond (Sherry Frey, 03:30–17:13)

Key Themes:

• Holistic Wellness: Consumers define wellness across personal health, the health of the planet, and social responsibility.
• Empowerment and Prevention: There's a move toward DIY health solutions, driven by rising healthcare costs and a desire for proactive longevity.
• Ingredient Scrutiny & Legislative Impact: Bans like Red Dye 3 led to immediate, measurable changes in shopper behavior.

Memorable Quotes:

• “Wellness is top of mind for so many consumers... not just dealing with immediate things, but thinking proactively about health span, not just lifespan.” — Sherry Frey (04:04)
• “When Red Dye 3 was banned in January, we saw an immediate consumer reaction... that says you've got a very empowered consumer.” — Sherry Frey (07:47)

Trends & Predictions for 2026:

• Health tech and wearable devices will become more predictive and integrated, providing curated, preventative recommendations.
• DIY healthcare will accelerate, with more consumers taking GLP-1 drugs and leveraging tech for behavior change.
• Convergence between food, supplements, and beauty will continue, with more wellness products sold outside traditional outlets (e.g., TikTok Shop, beauty stores).
• Expect the “ecosystem” of wellness tech to expand into unexpected places: “Not just what we’re wearing—future tech will be in our mouths, behind our ears, in our refrigerators.” (15:40)

Notable Segment:

• Predictive, Preventative Health Tech in 2026 (14:39–17:13)

2. Beauty Trends: The Digital Tipping Point (Anna Mayo, 18:12–29:02)

2025 Highlights:

• Beauty has become essential; amid financial pressure, consumers are still prioritizing beauty purchases.
• Digital First: Beauty is nearing a tipping point—over 50% of US beauty sales are shifting online, led by Amazon and TikTok Shop.
• “Amazon is now the number one beauty retailer in the US... TikTok Shop has proven you can bring impulse purchasing online.” — Anna Mayo (19:20–19:54)
• Indie Brands & Creator Economy: New brands and influencers are booming, with TikTok and Amazon accelerating the indie revolution.
• Blurring Boundaries: Beauty and wellness are converging—products now promise inner and outer benefits.
• K-Beauty & Product Simplification: K-beauty imports, simpler routines, affordable innovations, and ongoing strength in fragrances.
• Aesthetics Boom: Increased demand for med spa and dermatological treatments is changing at-home beauty habits.

Looking to 2026:

• Expect continued digital share growth, with online approaching parity with in-store.
• Income Disparities: Growth comes mainly from high-income shoppers (+18%), while low-income spend declines (25:09).
• Price Pressures: Tariffs are driving price increases; watch for consumer reaction.
• AI-Driven Curation: Consumers increasingly use AI (e.g., ChatGPT, Shopify integrations) for personalized routines. “People really want to just type into ChatGPT, ‘Give me a skincare routine for my dry skin under $80’...” — Anna Mayo (27:04)
• Fragrance & Functional Ingredients: Fragrance boom may continue; look for trends around functional ingredients (protein, creatine, hydration, GLP-1 support) to filter into beauty.

Summary Trends (28:32–28:48):

• Wellness beauty
• Creator-driven beauty (TikTok Shop, influencers)
• Agentic (personalized) beauty

3. Food & Beverage: Inflation, Ingredients, and the Empowered Shopper (Chris Costagli, 29:13–45:57)

2025 in Review:

• Affordability Crisis: Persistently rising food prices dominated consumer decisions.
• “Around 85% say they’re seeing higher food and beverage prices at the shelf... 94% are concerned.” — Chris Costagli (29:36)
• Intentional Shopping: More consumers seek deals, buy private label, and cut back on ‘nice-to-haves.’ Dining out is down; meal-making and food waste avoidance are up.
• SNAP Households: Financial strain is hitting hardest here; benefit disruptions and new state waivers create insecurity and ripple effects throughout CPG.
• Ingredient Scrutiny: Red Dye 3 ban—sales for products using it dropped 7%, while “free-from” surged.
• “Consumers are actively pulling back… choosing products free of that artificial color.” (33:24–33:38)
• Technology as Enabler: Filters, scanning apps, health/sustainability ratings, and AI are making it easier for consumers to make informed, values-based choices.
• GLP-1 Impact: Consumers using these drugs are shifting purchases to higher-protein, high-fiber, digestive aid products.

2026 Outlook:

• Value Recalibration: Price consciousness will persist, but “value” will be recalculated—products must justify their price with real benefits.
• “Value... is a function of price and the justification for the price.” — Chris Costagli (38:50)
• Private Label Ascendance: These brands are now perceived as premium, not just budget.
• GLP-1 Disruption Grows: Wider access means more shoppers with changed dietary needs—opportunity for new meal solutions, emotional support, even skincare.
• Ingredient & Transparency Pressure: Clean label and transparency will become dealbreakers, as mobile tech and trust issues drive rapid switching.
• Online and Social Commerce: Impulse shopping migrates to social feeds (TikTok, Instagram), changing how new products break through—“Social shopping is really evolving as the place where CPG impulse happens.” (44:11)

4. Pet Care: Population Dynamics and Premiumization (Andrea Binder, 45:59–55:23)

2025 Recap:

• Slower Growth: In-store pet care is flat or declining; online is still growing but at a decelerating pace.
• Pet Population Shift: Pandemic dog boom has stalled; fewer new dogs leads to lower dog food sales. Cat ownership is rising—cats are cheaper, easier, and driving outperforming subcategories in food, treats, and litter.
• Amazon’s Dominance: Third-party pet supplies now account for 30% of online pet sales; over half of shoppers used Amazon third-party at least once this year (47:23).
• Fresh Food Surge: Refrigerated/frozen dog food is a bright spot—makes up 7% of the market, offsets dry/wet declines, but remains substantially more expensive.

Outlook for 2026:

• Online Approaches 50%: Continued growth in online and subscription pet food/services expects to take the category to near a 50/50 split with in-store.
• AI for Pet Care: Increasing use of AI for diagnostics, recommendations, and pet well-being.
• Education Needed: High cost of fresh pet food is a barrier; brands can encourage partial integration (e.g., mixing with dry) to increase trial.
• Pet Supplements Growth: Pet owners are proactively seeking health supplements for pets, mirroring human wellness trends.
• Emotional Insight: The “fur baby” phenomenon continues—80%+ view pets as family members.

Notable Quote:
"Fresh dog food is 3 to 5x the cost per pound of dry. Breaking down that cost barrier and promoting it as an additive will be key." — Andrea Binder (52:34)

Timestamps for Important Segments

| Timestamp | Segment | Guest(s) | |-----------|----------------------------------|-------------------------| | 03:30 | Wellness trends in 2025 | Sherry Frey | | 09:48 | Wellness predictions for 2026 | Sherry Frey | | 14:39 | Health tech, prevention, curation | Sherry Frey | | 18:39 | Beauty trends in 2025 | Anna Mayo | | 24:34 | 2026 Beauty outlook | Anna Mayo | | 28:32 | AI and functional beauty | Anna Mayo | | 29:31 | Food & beverage 2025 summary | Chris Costagli | | 37:45 | Food & beverage 2026 predictions | Chris Costagli | | 43:58 | Ingredient focus and transparency | Chris Costagli | | 45:59 | Pet care 2025 review | Andrea Binder | | 51:29 | Pet care 2026 predictions | Andrea Binder |

Notable Quotes & Moments

1. On Wellness Moving from Gimmick to Daily Expectation:

   • "Wellness is everywhere ... more than ever, we saw wellness in new channels, with lines blurring between TikTok Shop, beauty retailers, and wellness products." — Sherry Frey (08:23)

2. The Digital Beauty Tipping Point:

   • "Beauty has become so digital first. We are about to reach a place where more than 50% of sales are going to be happening online." — Anna Mayo (19:06)

3. Ingredient Bans Impacting Real-time Shopping:

   • "When Red Dye 3 was banned in January, we saw an immediate consumer reaction... it's a very empowered consumer paying a lot of attention." — Sherry Frey (07:47)

4. Value in Food Is More Than Price:

   • "Value to me is a function of price and the justification for the price. It really doesn't matter whether you're an essential or luxury product." — Chris Costagli (38:50)

5. Fur Babies Take the Lead:

   • "Over 80% view their pet as an equal member of their household to the human members." — Andrea Binder (54:41)

Conclusion

Across all categories, 2025 was marked by consumer empowerment, digital acceleration, ingredient and health scrutiny, and resilience under economic pressure. In 2026, the CPG industry must prepare for greater price sensitivity but also heightened demands for value, transparency, and health. Emerging platforms (social commerce, AI-driven personalization), new access to wellness technologies, and evolving demographic shifts (GLP-1 adoption, pet household changes) will define growth opportunities and strategic pivots.

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