June 9, 2025 - Citrin Cooperman’s 2025 Manufacturing and Distribution Pulse Survey Report reveals that consumer products and retail companies are experiencing steady growth thus far in 2025. Key contributing factors to this growth include increased product demand, effective navigation of supply chain disruptions, and the ability to offset inflationary pressures in inventory and supply costs. Despite the positive financial indicators, however, consumer products and retail companies continue to navigate a complex landscape.

Key Challenges and Emerging Concerns

The top three challenges reported by our survey respondents in the consumer products and retail subsector include:

1. Managing cash flow (27%)
2. Implementing an effective environmental, social, and governance (ESG) strategy (26%)
3. High costs of capital (24%)

Cash flow management remains a critical concern, especially as companies balance investment in growth initiatives with rising interest rates and tightened credit markets. Additionally, tariffs are top-of-mind with 59% of respondents anticipating direct or indirect impacts on their operations with the implementation of new or increased tariffs. The top three tariff mitigation strategies the subsector is considering include demand planning, harmonized tariff schedule reviews, and freight consolidation. These strategies indicate a growing focus on operational efficiency and supply chain optimization to preserve margins and mitigate external shocks.

Strengths and Growth Momentum

Looking forward, consumer products and retail companies are approaching the upcoming years with a growth mindset.

Over the next three years, respondents anticipate their company will consider:

• Increasing capital investments (36%)
• Facility or plant expansion (35%)
• Entering new states markets (35%)

This signals a forward-looking approach focused on scalability, market expansion, and long-term positioning. Continuing with growth, 56% of respondents anticipate a sale of their business within the next three years, highlighting a potential period of consolidation and strategic repositioning.

To drive future growth and remain competitive, it is important for consumer products and retail companies to routinely assess and adequately respond to their customers’ evolving expectations and needs.

According to our survey respondents in this subsector, the factors most important to customers are:

1. Customer service – 37%
2. Pricing – 35%
3. Product availability – 32%
4. Technical knowledge – 29%
5. Range of products – 29%

The Road Ahead

Future success for the consumer products and retail subsector will depend on how well companies manage ongoing financial pressures, ESG integration, and evolving trade policy impacts on their supply chains. Businesses that can stay agile, capitalize on operational efficiencies, and prepare for market shifts will be best positioned to thrive in the years ahead.

Citrin Cooperman’s Manufacturing and Distribution Pulse Survey Report

Citrin Cooperman’s Consumer Products and Retail Industry Practice is a core focus of our Manufacturing and Distribution Industry Practice, striving to provide our clients with insights that will help them continue to grow and succeed in today’s quickly evolving environment. Our sixth annual Manufacturing and Distribution Pulse Survey Report aggregates insights from manufacturers and distributors in driving future growth, managing through instability, and improving their strategic business planning. Explore how this subsector compares to the full industry by accessing our 2025 Manufacturing and Distribution Pulse Survey Report below.

Access the 2025 Manufacturing and Distribution Pulse Survey Report