Reimagining consumer products

A new era is dawning for the consumer products manufacturing industry. Driven by supply chain vulnerabilities, geopolitical shifts, and the urgency of sustainability, companies are investing in reindustrialization to strengthen their domestic manufacturing base, innovate with cutting-edge technologies, embrace sustainable practices, and develop a highly skilled workforce.

Our Capgemini Research Institute report, The resurgence of manufacturing: Reindustrialization strategies in Europe and the US, found that 71 percent of companies in consumer product manufacturing either have a comprehensive strategy for reindustrialization in place or plan to develop one.

Take a look at how this transformation promises to improve the consumer landscape.

What is reindustrialization?

Reindustrialization is the re-establishment of global supply chains and manufacturing operations, often with the aim of bringing them closer to – or even within – domestic markets.

Resilience and geopolitical concerns drive reindustrialization

Supply chain resilience is paramount – 69 percent of consumer product manufacturers identify it as the primary driver behind their reindustrialization efforts. This emphasis on stability is further underscored by 63 percent citing geopolitical tensions and national security as key concerns, motivating a strategic shift towards domestic production.

A strategic shift towards domestic value chains

The consumer products manufacturing industry envisions a future where the entire value chain, from sourcing to manufacturing to delivery, is rooted domestically. In fact, 61 percent of organizations believe this is the strategic direction. Nearly half have already invested in reshoring, so the shift is well underway. Projections show that domestic facilities will account for almost half of production within three years, marking a significant departure from offshore reliance.

Climate goals and sustainable manufacturing

Reindustrialization is not just about operational efficiency, as environmental responsibility is also central.

Investing in digital transformation for sustainable reindustrialization

Technology is the cornerstone of the industry’s revitalization. Nearly 70 percent of consumer product manufacturers are optimistic about the innovative potential of reindustrialization and 63 percent are committed to investing in digital technologies to boost productivity. Notably, 60 percent are integrating technology specifically to combat climate change, recognizing the interconnectedness of digitalization and sustainability for achieving success.

The demand for a skilled and creative workforce

Reindustrialization demands a workforce equipped with a unique blend of skills.

Action steps for acceleration

Reindustrialization isn’t just a trend – it’s a strategic opportunity for consumer products manufacturers. By embracing domestic production, sustainable practices, and a digitally savvy workforce, the sector is primed for growth and a lasting competitive advantage.