Why Instagram Marketing Works for Early-Stage CPG Companies

Instagram marketing works so well for early-stage CPG companies. There’s a few different reasons, but ultimately it comes down to who Instagram users are and how they use the app compared to other marketing channels.

After ten years of marketing brands online, I have never once said “no, you don’t need Instagram.” But I have said “Facebook isn’t going to give you the strongest ROI” and “TikTok is not where we need to spend resources right now.”

If you’re leaning towards Instagram marketing for your early-stage CPG company, allow me to convince you you’re making the right call.

Instagram has a Low Barrier to Entry

Of all the marketing channels, social media has the lowest barrier to entry. It’s free, easy to get started, and you don’t need a marketing degree to create your first post.

When we look at the different social media channels, Instagram has an especially low barrier to entry as a business. Facebook is notoriously more complicated to use than Instagram, especially when it comes to Meta Business Suite.

To become a registered Business Account on TikTok, and get access to important features like a link in bio, you have to submit legal documents. While that isn’t the end of the world, it’s time-consuming.

Instagram Marketing Helps Companies Reach 42% More People

In 2025, on average, Instagram marketing helps companies reach 42% more people than TikTok. When you’re an early-stage CPG company, reaching as many people as possible is crucial. Although honestly, even once you’ve been in business for years, reach is still in your top three marketing goals. At least it is for all of my social media marketing clients.

I can already hear you asking “what about Facebook?” and yes, Facebook has more users. We’re talking 3 billion Facebook users compared to 2 billion Instagram users. But that doesn’t mean they’re the right users.

Age: Facebook has an older user base while Instagram is the preferred social media channel for adults under 35.

Behavior: Facebook users tend to lean towards community pages and discussion boards, whereas Instagram users are quick to like, follow, and consume brand content.

Marketing: Facebook is great for reaching a lot of different people. Instagram is better for product discovery, which is exactly what you need as an early-stage brand.

“What about LinkedIn” is usually the next question I hear. And LinkedIn is a valuable tool for early-stage brands, especially for connecting with retail buyers, investors, other founders, and people who can support your growth, like a CPG social media strategist (hi, it’s me!).

But you’re unlikely to reach consumers on LinkedIn. However, pretty much everyone and their mother has Instagram. So not only are you reaching more people, you’re reaching all of the right people.

Instagram Engagement is Higher than Facebook

Oh, I forgot to mention this in the last section. Instagram’s engagement is higher than Facebook and YouTube, but not TikTok. TikTok’s engagement rate is about 5%, Instagram’s is 3.6%, YouTube’s is 3.4%, and Facebook is closer to 1%.

Visuals Still Matter on Instagram

Originally known for pretty pictures and a plethora of filters, Instagram is still one of the most design-relevant social media channels. On TikTok, anything goes. And frankly, the same is true with Facebook. Design matters on Pinterest, but that’s not really a social media platform, it’s a search engine.

As a CPG brand founder, you know how important design is. Hydroxide Food Science even made the claim that these days, brands aren’t creating new food products, they’re creating new packaging for existing food items.

Whether your product is an entirely new invention or a better-for-you rendition, where better to market your beautifully packaged product than the one social media channel that prioritizes aesthetics and design?

Instagram Users are Ready to Buy

I’m sure you’ve seen this statistic floating around: 81% of Instagram users have used Instagram to research products. Another fun statistic: 75% of Instagram users have taken action based on an ad. That action could be as low-effort as following your account or as valuable as making an immediate purchase.

We know that people use Instagram for product discovery, so when you’re an early-stage CPG company, it’s one of your most valuable marketing channels.

Feedback is Fast, Free, and (Probably) Unhinged

In the beginning, you need as much feedback as you can possibly get. Obviously. You want to improve your product, packaging, and marketing quickly so you can figure out what works best for your company, then grow grow grow.

On Instagram, you’re going to get a LOT of feedback in a fast, free, and probably unhinged way.

My favorite example comes from Good Mess. In that post they shared the feedback they’re getting and how they’ve actioned it. But most importantly, they wrote that post in a way that reminds the customer A) they’re human B) they take their feedback seriously C) they can have a sense of humor about it all. It pokes fun at their shortcomings, acknowledges they can do better, and shows they are serious about being the best fit for the audience.

Your Next Steps

Since you’ve made it all the way to the bottom of this blog post, you’re probably wondering what to do next when it comes to Instagram marketing for companies.

Consider this a choose your own adventure: if you’re not ready for Instagram marketing, check out Ready-to-Launch. If you’re already on Instagram but need help getting more reach, you need The Visibility Vault. And if you’re good on those, then I wonder if you’ve implemented systems to help you grow asap? If not, Scale on Socials is for you.

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Wait, Who Am I?

Hiiii! 👋🏻 I’m Sarah, a CPG social media strategist with over 10 years of experience. I went from starting a clean beauty blog right out of high school to managing social media for Canada’s largest wellness retailer. Now I live in the middle of nowhere in North Carolina, helping high-growth entrepreneurs get SEEN so they can build a crazy fun life their business supports, and not the other way around.

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