New Era of Consumer Packaged Goods: Inclusive Brands Rising Amid Funding Challenges
A New Era in Consumer Packaged Goods
The consumer packaged goods (CPG) sector is witnessing a remarkable transformation that reflects a more inclusive future. This shift is prominently outlined in the 2026 Annual Impact Report released by INCLUDED, the largest collective of founders and leaders of color in the CPG industry. Unlike the traditional focus on securing significant funding, many brands are now proving that resilient business practices and innovative thinking can thrive with minimal outside investment.
Shifting Perspectives
Traditionally, the narrative around entrepreneurship often glorified the act of raising substantial capital as a hallmark of success. However, the newly released report indicates a significant shift in this dynamic. According to the dataset of 98 member brands, 61% generate more revenue annually than the total capital raised. This statistic alone challenges the notion that fundraising is the only key to growth. For these brands, it's about what they do with their resources rather than how much they acquire.
The report further highlights that 24% of member brands have achieved a revenue-to-capital ratio greater than 41, showcasing exceptional capital efficiency. Most notably, 73% of these brands raised less than $250,000 in outside funding, proving they can succeed in a climate that often overlooks the smaller players.
Insights from Founders
Founding member Jomaree Pinkard expressed the necessity of shifting the focus from capital raised to sustainable business practices. He noted, “For years, the conversation centered on who raised the most capital. We need to pay closer attention to who’s building the most resilient business.” This insight resonated throughout the report, emphasizing that operational discipline and genuine consumer connection can be just as impactful as having substantial funds.
INCLUDED has evolved into a vital ecosystem for CPG founders, fostering connections between entrepreneurs, retailers, investors, and industry experts. This network supports the community in navigating the complexities of brand building and market distribution. In fact, since its inception, INCLUDED has facilitated over 3,000 introductions with retailers and distributors, generated 1,500 editorial features across various media outlets, and showcased 350 emerging brands at key industry events.
Overcoming Challenges
While the report celebrates these successes, it does not shy away from addressing the significant challenges faced by founders. Raising capital, distribution, marketing, and manufacturing stand out as the most daunting hurdles in the path to sustainable business growth. To tackle these challenges, INCLUDED plans to deepen partnerships across the ecosystem, expand access to retail opportunities, and continuously produce insights that clarify emerging trends in the industry.
Towards an Inclusive Future
Most notably, INCLUDED's community comprises more than 800 founders and ecosystem leaders, working together for an innovative and inclusive CPG landscape. Founding member Victoria Ho articulated the importance of cultivating trust and relatable relationships within this community. She mentioned that what they create collectively is not merely a resource but a valuable space for meaningful connections that drive innovation.
The comprehensive report is a testament to the entrepreneurial spirit of founders of color, reinforcing the idea that sustainable entrepreneurship is attainable within the CPG industry. As INCLUDED continues to pave the way for change, it serves as a model for building more equitable and successful business practices in a domain often dominated by conventional metrics of success.
In conclusion, the consumer packaged goods industry is in a pivotal stage of evolution. The emphasis is tilting towards strengths derived from operational excellence and community-driven growth rather than solely financial backing. As the trend gains momentum, it opens new doors for what the future of CPG can look like—a landscape more representative of diverse voices, fostering resilience and creativity in every brand journey.