This report is adapted from Glossy’s sibling publication Modern Retail. You can read the full report on Modern Retail.
Table of contents
Introduction
To stand out and overcome mounting competition in retail, temporary pop-ups have become a popular choice for brands to deliver a unique experience to customers. The word-of-mouth buzz and limited availability of a pop-up build excitement for the brand and its products, as well as possibilities for a long-term customer-brand connection. In Glossy+ Research’s survey of 60 brands, one-third of respondents (33%) said their brand was investing in pop-ups for the fall.
Digitally-native brands, especially those just starting to gain retailer distribution, are also heavily investing in pop-ups. “Pop-ups are becoming more and more important for all businesses that do business online because you can only get discovered in that one medium,” said Michael Brown, a partner and Americas retail leader at consulting firm Kearney. “It’s really about capturing new audiences and new customers.”
Glossy+ Research looked at CPG startups that are using pop-ups to test new markets and expand their reach. In Glossy’s sample of 21 startup CPG brands, 17 hosted a pop-up event last year.
Still, some brands are bullish on the concept. Here’s a look into how digital startups like electrolyte drink mix brand Liquid I.V., energy drink brand Lucky Energy and olive oil brand Graza are using temporary pop-ups to conduct market tests and reach customers with a unique brand experience.
Methodology
Glossy+ Research analyzed the pop-up events and activations that 21 CPG startup brands held during the time period July 1, 2023 — August 1, 2024. The brands were chosen by the editorial team based on past coverage and industry analysis of scaling startups by Glossy’s sibling publication Modern Retail.
We also conducted a focus group with executives from Liquid I.V., Lucky Energy and Graza to learn first-hand about the activation strategies these startups are using to grow brand awareness and increase product distribution.
CPG startups use pop-ups for multi-city market testing
The mobility and flexibility of pop-ups is a main attraction for brands. Rather than investing in a permanent flagship store or traditional retail location, pop-ups allow brands to establish a presence in multiple locations around the country and increase brand awareness at a lower capital cost. In Glossy’s study, nine of the 17 brands that organized a pop-up last year scheduled stops at multiple cities and locations across the country.
“A static flagship store is really limited to the people who are able to access that in a given location,” said Stacey Andrade-Wells, CMO at Liquid I.V. “For us, having an activation that can travel around the country is helping to expand the reach, the amount of sampling we can do of our product and, overall, the national brand awareness rises.”
Primal Kitchen partnered with Pinterest this year to visit New York City, Chicago and L.A. with its “Colorful Kitchen” pop-up. According to Ana Goettsch, Primal Kitchen’s head of marketing, the pop-up was an extension of the out-of-home and in-person activations Primal Kitchen has been rolling out over the past year. By traveling to multiple locations, startups like Primal Kitchen can increase a brand’s footprint by bringing product samples and IRL brand experiences to new areas.
The most popular pop-up locations for all nine brands were New York City and Los Angeles. However, holding pop-ups in other areas of the U.S. is equally important for most brands in order to build up retail distribution and awareness outside of New York City and L.A. Cities like Austin, Chicago, San Francisco and Boston were also important test zones for these brands.
The young, hip and growing community of Austin makes it a popular location to test out new products and concepts among curious, tech-savvy shoppers. The city has attracted big names like Meta, Google, Oracle, Tesla, Snap and Apple, which have relocated or expanded in recent years. Austin has seen the most growth in headcount at Big Tech employers with 44% growth since 2019, according to Forbes.
Many startups included in this report are also headquartered in Austin. Soda brand Poppi, Mexican-American food brand Siete Foods, sauce brand Yellowbird and energy drink brand Lucky Energy are all headquartered in Austin and often host pop-ups in the surrounding areas.
Boston is an attractive pop-up location for young brands based in Massachusetts and surrounding areas, such as Grillo’s Pickles which is headquartered in Westwood, Massachusetts, and soda brand Spindrift which is headquartered in Charlestown, Massachusetts. Hosting pop-ups in nearby Boston is an easy grab for the brands.
Samplings, exclusive experiences and merch offer the most impact at pop-ups
The brand executives who participated in Glossy’s focus group said they have found that offering product samples and incorporating a brand experience with a pop-up are key to making a pop-up successful. “One of the biggest, impactful things has been our sales team and brand ambassadors sampling product, telling the story and giving away merch,” said Hamid Saify, CMO of Lucky Energy. “We’ve had really good feedback with just the tried and true stuff.”
Liquid I.V.’s Andrade-Wells agreed. “This is a huge moment for product sampling,” she said. “We call [our sampling program] ‘sticks in hand.’ This year, with our festival activations, we actually increased our sticks in hand by over 30% in 2024 versus 2023. So, that’s a really key component for us.”
Other CPG startups seem to agree. In Glossy’s sample, all of the pop-ups analyzed included some form of product sampling. Nearly half (41%) included an immersive experience or activity.
The brand executives Glossy spoke with offered various opinions on how to differentiate a brand’s pop-up from a sea of competitors. “Have something little that encourages people to participate in some kind of active way, and not just show up and get something for free, or get a piece of merch,” said Kali Shulklapper, director of marketing at Graza . “Doing something that really encourages them to get involved in a more hands-on way is really important to creating a very memorable experience.”
Similarly, Lucky Energy’s Saify advises that customer participation requests should be kept simple. “Simplification is key for us. And, in key moments, not being overly branded,” he said.
Ultimately, finding innovative ways to encourage consumers to try a new product is of paramount importance for CPG startups, as they compete with household name brands with the marketing budgets of established food and beverage companies behind them.
Key findings
- Startups are using pop-ups to market-test new products and creative concepts.
- Nine of the 17 brands in Glossy’s study that organized a pop-up over the last 12 months scheduled stops at multiple cities nationwide.
- The most popular locations for all nine brands were New York City and Los Angeles. However, cities like Austin, Chicago, San Francisco and Boston were also important test zones.
- Product samplings and unique brand experiences make the most impact at pop-ups.
- All of the pop-ups analyzed (100%) included some sort of product sampling. Nearly half (41%) included an immersive experience or activity.
- Having a unique brand experience that encourages attendance and participation in a pop-up helps a brand differentiate itself from the competition, but it’s important to keep these tasks simple.
