Emotional Branding in CPG: Why It Works and How to Do It Right

In today’s dynamic and digitally driven retail environment, connecting with consumers on a rational level is no longer enough. Brands are increasingly turning to emotional branding to forge meaningful relationships in the consumer packaged goods (CPG) sector. Emotional branding is becoming a strategic imperative, especially as consumers seek more than simply transactional value in their purchases.

This article explores what emotional branding is, why it’s gaining momentum in CPG, and how leading brands are successfully implementing emotional branding strategies to create lasting customer loyalty.

At its core, emotional branding refers to the practice of forming an emotional connection in branding efforts to build lasting relationships between consumers and brands. The approach taps into feelings, values, and aspirations to shape brand perception.

So, what is emotional branding in CPG? It’s a way for everyday products — from laundry detergent to food and beverage — to become part of a consumer’s identity or lifestyle through resonance, rather than just functionality.

Consumers now increasingly expect brands to mirror their own priorities, whether those be sustainability, inclusivity, or joy in everyday moments. Emotional branding connects on a deeper level, enabling brands to foster trust and relevance in a highly competitive market.

At Mintel, we’ve identified several factors fuelling the rise of emotional branding in the CPG space, for example, changing value perceptions, generational differences, and more. Let’s explore them in more detail below.

Traditionally, a product’s value was measured by its price and the convenience or functionality it offered. Today, however, shifting consumer perceptions mean that value increasingly encompasses whether they trust a brand and whether its moral practices align with their own beliefs, thus creating an added layer of emotional value. Consumers’ definition of value is now multidimensional, expanding beyond just price and convenience: 47% of US consumers say that emotional value is just as important as product quality and price when making future purchase decisions — a sentiment that will continue to grow. It is therefore imperative for brands to tap into the market opportunities of a successful emotional branding strategy.

Today’s shoppers want their purchases to go beyond the transaction, aligning with personal values like sustainability, ethical practices, and social impact. Moving forward, Mintel expects that gift purchases will be all about how CPG brands build emotional connections that rely more on how products and brands resonate with buyers on a personal level. During financially uncertain times, celebrating multicultural consumers’ heritage (beyond designated heritage months), evoking nostalgia, and emphasising trust and reliability built over time, will strengthen customer relations.

For example, Flipkart has partnered up with the incense stick brand Cycle Agarbatti to bring the scents of Pongal to city (Mintel clients access only) commuters by transforming bus stops into nostalgia-filled spaces, evoking the cherished scents of Pongal and providing a sense of home. The campaign taps into the deep emotional connection that scents have with memory and nostalgia, reinforcing the power of sensory branding to drive customer engagement.

Consumers want brands that deliver experiences, not just products. The impact of emotions on CPG purchase decisions is growing, driven by shoppers’ desire to feel seen, understood, and valued.

Loyalty programs are a key tool for emotional branding in CPG:

Traditionally, loyalty programs focus on savings as a reward for repeated purchases with a brand or retailer. A more experiential take on loyalty programs that emphasises personalised rewards and literal experiences are on the horizon for this engagement tool with shoppers.

A strong emotional branding strategy aligns storytelling, personalisation, and brand values with consumer expectations.

Storytelling remains a cornerstone of emotional branding. Whether evoking nostalgia, cultural pride, or shared values, storytelling allows brands to connect with their customers and strengthen their brand loyalty. Especially in the gifting sector, building emotional connections with shoppers helps to remove the stress associated with gifting and differentiate offerings. CPG brands that communicate how they fit into consumers’ lives and identities are more likely to stand out. However, brands should also be mindful of the pitfalls of emotional branding campaigns. If executed poorly, they risk being perceived as inauthentic. While aligning with global passions can be powerful, striking the right balance between local and global cultural nuances is essential to avoid alienating core audiences.

Personalisation, enabled by AI and customer data, allows brands to tailor content, recommendations, and product experiences. This approach not only improves convenience but also makes consumers feel known and appreciated. Personalised products are already gaining traction in the beauty and personal care space with products tailored to individual skincare needs, and 50% of Germans show interest in customised beauty and prioritise personalised skincare.

Loyalty programs offer opportunities to expand personalisation efforts and a way for brands to show they’re listening to consumer feedback and foster customer loyalty by offering special perks or exclusive experiences: 63% of Gen Z and Millennials say that their favourite brands are those that feel like friends to them.

For example, US retailer Sephora hosted the “Rogue Celebration Event” in August 2024 as part of its loyalty program. It was a four-day experience featuring in-store and online activations for Sephora‘s top spenders. “Rouge-tier members” enjoyed exclusive rewards from brands like Kerastase, attended online masterclasses, and were the first to shop for new products from companies such as Givenchy.

Trust is at the heart of emotional branding. In fact, 56% of consumers state that a brand’s values must align with their own when making a purchase. Transparency about sourcing, sustainable practices, and ethical commitments allows brands to cultivate trust and loyalty.

A shift from transactional to experiential loyalty programs is a key emotional branding strategy, as offering personalised experiences instead of just discounts reinforces emotional bonds. This can happen through exclusive content, curated product recommendations, or community-driven perks.

Innovative brands are incorporating gamification, nostalgia, or community-building into their strategies. For example, campaigns that invite consumers to co-create or celebrate shared moments show how brands and emotions can be intertwined to drive relevance and loyalty.

Emotional branding is a powerful way to bridge the gap between product functionality and consumer identity. In an era of cautious spending, the benefits of emotional branding for consumer products lie in its ability to create relevance, trust, and differentiation. By embracing storytelling in CPG marketing, leaning into personalisation, and showcasing authenticity, brands can foster meaningful emotional connections and customer loyalty.

Is your brand ready to connect with customers on an emotional level?

Explore how to build emotional connections to drive purchases and foster long-term loyalty with Mintel resources. Browse all our Consumer Insights Reports on Mintel Store.

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