The rise of direct-to-consumer (DTC) models in the CPG industry isn't just a trend. It's a shift in how brands approach customer relationships, market speed, and brand experience ownership.
This shift matters for marketers and insight leaders at established food and beverage companies. DTC poses a competitive threat but offers elevated clarity and control—the keys to protecting market share and driving stronger consumer engagement.
Selling directly gives brands more than just a different channel. It opens access to high-value first-party data like purchasing patterns, frequency, product pairings, and real-time feedback. These insights help marketers personalize outreach, tailor experiences, and make more confident product decisions faster.
When consumers buy from a brand's site, tracking behavior, tailoring experiences, and spotting new opportunities become easier.
Subscription models are gaining traction in food and beverage because they meet consumers where they are, offering convenience without sacrificing personalization.
Brands like Magic Spoon have built loyal followings by delivering better-for-you cereal directly to people's doors, while Trade Coffee matches subscribers with roasts based on their flavor preferences.
These brands are making repeat purchases easier by creating tailored experiences that feel intentional and engaging.
The best subscription experiences go beyond product delivery. They tap into content, community, and customization, giving customers reasons to keep coming back.
While DTC started online, many food and beverage brands now use physical activations to strengthen the brand experience. Pop-ups, sampling stations, and branded events are helping digital-first brands create offline engagement.
Olipop, for example, has expanded into retail while maintaining its DTC channel. This hybrid strategy allows brands to meet customers online, in-store, or somewhere in between.
Today's food and beverage consumers are driven by values as much as flavor or function.
Nearly one-third of consumers say a brand's ethics and sustainability efforts directly influence their loyalty, making it worthwhile for beverage brands to invest in regenerative initiatives.
DTC models come with challenges. For many legacy CPG brands, going direct means navigating fulfillment infrastructure, customer service expectations, and an increasingly crowded digital marketplace.
However, with the right insights, DTC can offer a competitive edge. It creates space for testing, iteration, and direct engagement that traditional retail can't match.
MDRG helps CPG brands understand consumer behavior through brand tracking studies, customer experience insights assessments, and product development research. Whether you're exploring an emerging DTC opportunity or refining an existing strategy, our Whole Mind™ approach can help you stay ahead of market shifts and consumer expectations.