Using CB Insights data, we identified D2C CPG startups to watch, as CPG brands aim to gather online shopper data and reduce reliance on brick-and-mortar retailers.
Even as the overall brick-and-mortar retail industry struggled, many CPG brands continued to rely on grocery and convenience stores to sell their fast-moving, relatively low-cost products.
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However, recent trends — such as the success of direct-to-consumer CPG startups like Dollar Shave Club, and the growth in online CPG sales for Amazon and other giants — suggest direct-to-consumer (D2C) options are no longer something CPG leaders can ignore. Startups like Dollar Shave Club and The Honest Company, for example, began to capture market share relatively quickly, and in 2016 Unilever acquired Dollar Shave Club for $1B.
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