The Evolution of Premium CPG
In recent years, the world of premium consumer packaged goods (CPG) has undergone a profound transformation. Where once “premium” was synonymous with high price points, minimalistic packaging, and aspirational imagery targeting affluent, urban consumers, today the category is being reshaped by culture insights and trends. Younger, multicultural, and digitally native audiences are influencing what it means to be premium. These consumers prioritize identity, values, and cultural expression over traditional indicators like price or European heritage.
Multicultural Consumers Driving Market Growth
Consumer insights and trends reveal that premium CPG is no longer an exclusive space reserved for a homogenous demographic. From specialty skincare to artisanal pantry products, consumers of color are increasingly driving the growth and evolution of the premium market. A recent McKinsey report notes that Black consumers in the U.S. alone wield over $1.6 trillion in annual spending power. These consumers seek products that reflect their identities, values, and aspirations. Similarly, Hispanic consumers collectively hold more than $2.8 trillion in buying power, and research shows they are 66% more likely than the general population to pay a premium for authentic, high-quality products.
Beyond Price: The Importance of Storytelling
These cultural insights highlight a shift: premium is no longer defined solely by cost or exclusivity. Today’s consumers value storytelling, heritage, and transparency. Take Partake Foods, for example. Founded by Denise Woodard, the brand offers allergy-friendly, premium snacks while placing representation and inclusion at the core of its mission. The ingredients matter, but equally important is who makes the product, who it serves, and the story behind it.
Direct-to-Consumer Platforms and Audience Connection
The growth of direct-to-consumer (DTC) platforms has amplified these audience insights. Minority-owned brands can now build direct relationships with their customers, creating loyalty that goes beyond transactions. Brands like Topicals, led by Olamide Olowe—the youngest Black woman to raise $10 million in venture funding—demonstrate how premium products rooted in cultural insights thrive when they resonate with the communities they serve. These brands succeed because they understand the cultural nuances of their audiences and reflect them authentically.
Sustainability and the Influence of Gen Z
Consumer behavior insights indicate that younger audiences, particularly Gen Z, increasingly prioritize sustainability and alignment with their values. NielsenIQ data shows that 61% of Gen Z shoppers consider sustainability when purchasing CPG products, and multicultural Gen Z audiences are even more likely to seek brands that match their cultural and social values. This is significant because Gen Z represents the most racially and ethnically diverse generation in U.S. history, with nearly half identifying as non-white. For brands, this means cultural trends and research are no longer optional—they are essential to product positioning, marketing, and community engagement.
Redefining Prestige in Premium CPG
A reorientation of prestige is underway. Historically, products were considered luxurious if they were European, clinical, or had sleek, minimalistic branding. Now, premium brands compete with products that celebrate heritage, cultural narratives, and vibrant expression. Diaspora Co., a South Asian spice brand, exemplifies this shift. By offering single-origin turmeric and cardamom while educating consumers on how to decolonize their spice cabinets, the company blends research insights with cultural storytelling. Diaspora Co. also prioritizes fair wages for small farmers, further reinforcing the connection between premium quality and cultural responsibility.
Cultural Perception of Quality
Another important aspect is how consumers of color perceive quality differently. Audience insights show that premium is often tied to tradition, ancestral knowledge, and family heritage rather than packaging or minimal design. Golde, co-founded by Trinity Mouzon Wofford, offers matcha and turmeric blends inspired by holistic wellness practices. With its colorful, youth-friendly branding, Golde exemplifies how lifestyle, culture, and self-expression converge with product quality. These consumer behavior insights reveal that culturally resonant brands can command premium positioning while connecting deeply with their audiences.
Premium Beauty and Personal Care Trends
Beauty and personal care are among the fastest-growing premium categories. Black and Latina consumers, in particular, show disproportionate investment in products that reflect their identity. McKinsey Beauty Market Insights reports that Black consumers spend roughly $1.2 billion annually on beauty products and are 2.5 times more likely to engage with brands that align with their identity. Historically underserved, these demographics are now fueling growth in the premium segment. Brands such as Ami Colé and Rare Beauty focus on inclusive product development, diverse imagery, and mental wellness alongside high-quality formulations. These companies exemplify how consumer insights and trends drive product innovation and community connection in the premium space.
Health-Conscious Consumers and Cultural Relevance
The post-pandemic health-conscious consumer is another force reshaping premium CPG. Asian American audiences, for instance, have shown increasing interest in products that blend Western science with Eastern traditions. Brands like Poppi, a prebiotic soda, and Immi, a high-protein, low-carb instant ramen, appeal to health-aware Millennials and Gen Z shoppers seeking indulgent yet culturally familiar foods. These examples underscore the importance of cultural insights in creating products that satisfy multiple consumer priorities—health, taste, and cultural relevance simultaneously.
Retailers Responding to Multicultural Influence
Retailers are responding to these shifts by expanding access and visibility for culturally relevant premium brands. Sephora has increased shelf space and marketing budgets for BIPOC-owned premium brands. Programs like Target’s Forward Founders, which supported minority entrepreneurs, demonstrate how cultural trends and research inform not just product development but also retail strategy. Crucially, integration into mainstream shopping spaces—rather than relegation to “multicultural” sections—ensures that representation translates into real visibility. Research insights emphasize that visibility, parity, and cultural authenticity collectively enhance a brand’s perceived value.
Purpose-Driven Messaging in Mass-Market Brands
Even mass-market brands are adapting. Dove, for instance, has leaned into purpose-driven messaging around racial equity in beauty. Its CROWN Act campaign, advocating against hair discrimination, aligns brand messaging with deeper consumer values around authenticity and respect. Audience insights suggest that such culturally aware initiatives reinforce trust and relevance, positioning the brand within the premium consideration set for socially conscious consumers.
The Role of Purchasing as Cultural Participation
Modern consumers increasingly see purchases as acts of cultural and political participation. Morning Consult reports that 60% of Gen Z consider a brand’s values when making purchasing decisions. Missteps in cultural sensitivity or perceived inauthenticity can significantly damage trust. This reinforces the need for brands to leverage consumer behavior insights, cultural trends and research, and audience insights to ensure their offerings resonate meaningfully.
The New Definition of Premium
In essence, premium CPG is no longer defined solely by ingredients, aesthetics, or price. It is now determined by whether brands understand and reflect their audiences’ lived experiences, cultural backgrounds, and values. Today’s consumers are purchasing meaning, not marketing narratives they perceive as performative. Cultural insights and consumer insights and trends are the tools that allow brands to meet these expectations and foster lasting loyalty.
Transformation and Growth in Premium CPG
The evolution of premium CPG signals both transformation and growth. Products once judged luxurious for their European heritage or clinical presentation now compete with brands celebrating culture, vibrancy, and community. Brands that embed research insights, audience insights, and consumer behavior insights into product development and marketing strategies are best positioned to thrive.
Conclusion: Culture at the Core of Premium
Ultimately, the future of premium CPG will be shaped by cultural fluency, inclusivity, and authenticity. Brands must listen to and understand their audiences through ongoing cultural trends and research, ensuring every product tells a story that resonates. Consumers are no longer passive recipients—they are active participants in shaping the premium landscape.
The traditional definition of luxury is giving way to a more complex and culturally rich vision of premium. Success in this evolving landscape requires brands to integrate cultural insights, consumer insights and trends, audience insights, and research insights into every facet of the business. Brands that embrace this approach create not only premium products but also meaningful connections with their audiences, redefining what it means to be premium in the 21st century.
