June 3, 2026
When Scale Stops Working: The Fight for Volume Growth at Large Consumer Goods Companies
Alvarez & Marsal’s analysis shows that revenue growth accounts for roughly two thirds of the difference in valuation multiples among leading consumer packaged goods companies. Growth-led earnings are valued at twice the level of cost-driven gains.
Yet many large CPG players are struggling to deliver it.
In this article the team explores:
- What's eating volume Market dynamics have shifted. The traditional advantages of size are eroding. Key pressures include shrinking volumes despite price increases, challenger brands taking share, and private label as a structural disruptor.
- The old CPG growth model is broken. What is needed now? The traditional model built for efficiency at scale no longer fits today’s fragmented, fast-moving market. Companies must move beyond incremental efficiency and rethink how they create growth.
- The Total Performance Approach Winning organizations pursue growth and efficiency at the same time. At the core is a shift to consumer-first decision making, supported by stronger retailer partnerships and real-time resource allocation
Explore how leading CPG companies can redesign their operating models and unlock sustainable volume growth.
