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Dwight x CPG Wire Present: DTC Trends & Fundraising Index

5 April 2023

Janaury 1st — March 31st, 2023

Leading CPG Working Capital Provider Dwight Funding and DTC news aggregator CPG Wire combine expertise to present the first-ever index of the latest fundraises and trends across food & beverage, beauty, and general consumer product categories. 

Those of us who know DTC know that we have one of the most passionate and engaged communities of brands and service providers out there. With so much to be excited about, the sheer volume of information can be overwhelming. That’s where we come in. Between CPG Wire’s treasure trove of industry news and Dwight’s extensive network and benchmarking capabilities, we boiled down the past three months into the following product and fundraising trends.

About CPG Wire

CPG Wire is a news aggregator focused on consumer packaged goods. Find the latest food, beverage, cosmetics, and wellness news on 

About Dwight Funding

Dwight is a modern working capital partner for industry-leading businesses in eCommerce, Food & Beverage, and General CPG

Consumer Product Trends

Check out some of the trends on our radar, followed by our one-of-a-kind fundraising index with nearly 100 equity raises across CPG since the new year.

BEAUTY | The Skinification of Hair

The term ‘skinificiation of hair’ is when consumers apply the same level of care and attention to their hair regime as they do with skincare, and has recently become a big part of the conversation among beauty brands and service providers. Under the umbrella of skinification, we’ve seen a rise of emerging products geared toward scalp care and textured hair types, as well as increased investor interest in the category.

Scalp care in the news…
  • Australian scalp care brand, Straand, raised $2MM in pre-seed funds from Unilever Ventures
  • Dae Hair closed $8M Series A round led by Verity Venture Partners
  • PATTERN Beauty launched at Macy’s
  • Japanese scalp care brand, Michiru, made their debut in the US market at Target
  • Unilever and Walmart collaborated on a line of scalp care products called Beautiful Hair & Scalp
Textured haircare in the news…
  • P&G acquired Mielle Organics, textured hair care brand founded by Monique & Melvin Rodriguez
  • Adwoa Beauty raised $4MM from Pendulum
  • Uncle Funky’s Daughter launched at Target
  • Pardon My Fro launched exclusively at Walmart
  • 4U by Tia Mowry launched exclusively at 2,800 Walmart stores
FOOD & BEVERAGE | Asian-inspired Flavors, Gut Health, & Alt-Dairy

Consumers and founders alike are increasingly seeking out nostalgic flavors in the food aisle, leading to a proliferation of snacks, drinks, and condiments that celebrate authentic Asian ingredients and apply modern nutritional concepts. Additionally, evidence suggests that dairy might be on the outs amongst consumers, with products like probiotics and plant-based milks gaining popularity with investors and wholesalers. 

Asian-inspired flavors in the news…
  • Immi Eats, closed $10MM Series Around led by Touch Capital
  • Fly By Jing, raised $12MM Series B from Prelude Growth Partners and Pendulum
  • David Chang’s CPG product, Momofuku Goods, secured $17.5MM from Siddhi Capital
  • Xiao Chi Jie raised an additional $21MM from an undisclosed investor 
  • ​​Omsom launched at 500 target locations
  • MingsBings launched at 800 Publix stores and 400 Sprouts locations
Gut health in the news…
  • Edible wellness brand BelliWelli raised $15.4MM from The Invus Group
  • Australian tennis player Nick Kyrgios invested in probiotic soft drink brand ALIVE
  • Superfood-infused wellness brand Golde is launching at Ulta Beauty
  • Good Culture partners with Dairy Farmers of America on probiotic milk
Alt-dairy in the news…
  • Slate raises $10m 
  • Next Gen Foods acquired dairy-free ice cream brand Mwah! 
  • Morinaga acquired dairy-free cheese brand Moocho
  • Vita Coco launched a Barista MLK with LA’s Alfred Coffee
  • Oatly sold the vast majority of its manufacturing capacity for $98.1m
LIFESTYLE | Pet Nutrition & Women’s Health

Since the pandemic-driven spike in new pet owners, we’ve observed incredible innovation in the pet space. Investors are also noticing this vertical as of late, with pet care startup funding and M&A on the rise despite declining consumer spending patterns. 

The second major trend in the ‘lifestyle’ category, sexual wellness, has been on the rise for quite some time now, and does not seem to be losing any momentum in recent months. One venture group even announced that their latest fund will focus solely on sexual wellness and women’s health startups.

Pet care in the news…
  • Bundle x Joy lands $1mm in seed funding
  • UK-based natural pet food brand Scrumbles raised $7.2m from BGF
  • Beach Point Capital Management acquired Wet Noses
  • Mexico City-based Pet’s Table raised $2m in seed funding led by Left Lane Capital
  • Mars Petcare acquired Canada’s Champion Petfoods
  • Australian human-grade pet food brand Lyka raised $30m 
  • Pet lifestyle brand Yummers raised $6.3m led by L Catterton 
  • L Catterton invested in Partner Pet, China’s leading premium pet food brand
  • J.M. Smucker sold a number of pet food brands to Post Holdings for $1.2B
  • Belgian premium pet food brand Edgard & Cooper raised EUR 20m from The Craftory
Women’s health/Sexual wellness in the news…
  • Christina Aguilera joins Playground as Chief Brand Adviser
  • UK-based Luna Daily lands $3.7m in venture funding, will launch at Sephora in the U.S.
  • Maude rolls out storewide at Sephora
  • Bloomi expands their retail presence at Saks & Target
  • Cake raised $8m in Series A funding from Silas Capital, Lerer Hippeau, Bullish, and Selva Ventures
  • Amboy Street Ventures raised a $20m fund to invest in sexual wellness and women’s health startups 
  • Dame launched at Sephora 
  • Dame raised $7m led by Amboy Street Ventures

Stay up-to-date on the latest fundraises in your DTC category with the help of our comprehensive list of brands that brought in investor capital since January.

CPG Fundraising Index

Fundraising Landscape

VENTURE CAPITAL | Profitability

In the past few months, we’ve seen venture groups become more and more selective with their consumer investments. This is common in an uncertain economy; less money in circulation means increased difficulty to raise a new fund, making risk aversion & collecting on existing investments all the more important. As a result, VCs are doubling down on the cash cows within their portfolio, and are cracking down on profitability for new investments as well as existing portfolio companies. 

BANK FINANCING | Swimming Upstream & Non-Bank Partnerships

In terms of DTC debt landscape, traditional bank financing has historically been reserved for later stage businesses, but profitability has more or less become a requirement in recent months. As a result, we’re seeing banks re-route smaller credit clients to non-bank lenders, ultimately creating a domino effect among CPG capital providers.

To combat shrinking CPG credit portfolios and the onslaught of new corporate banking partners caused by recent bank closures, banks are establishing referral-based partnerships with non-bank lenders to ensure brands in their network are receiving service that meets their standards.


They say history repeats itself, and that’s certainly true when it comes to the fundraising landscape. An increased emphasis on profitability is commonplace in a recessionary economy and there is light at the end of the tunnel for early-stage brands feeling these effects. The key for early-stage consumer businesses will be to extend runway until the market inevitably shifts in their favor. 

You may be wondering how to extend runway with VCs and banks tightening their purse strings. We suggest speaking to your finance team about exploring your debt options. Odds are, you can leverage the assets you already have (think inventory and/or accounts receivables) for working capital to fund operations, marketing, inventory build, etc. For more on this, check out our article comparing the two most common non-dilutive capital structures for DTC businesses.

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