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Why 8 out of 10 New CPG Food Brands Fail (and How to Avoid It)

Posted by Damian Roberti on May 7, 2025

Why 8 out of 10 New CPG Food Brands Fail (and How to Avoid It) Launching a CPG food startup is exciting, but the odds of success are daunting. In the U.S., the CPG (consumer packaged goods) food industry is brutally competitive – roughly 8 out of 10 new CPG food brands fail within a few yearsfastcompany.com. This high CPG food startup failure rate means founders must navigate numerous CPG brand challenges to survive. Below, we dive into data-driven reasons why so many new food brands flame out, and provide practical food brand success tips to avoid common pitfalls. Whether you’re an early-stage founder, operator, or marketer, this report-style...