Executive Summary
Carpe Diem Partners continues to provide real-time market intelligence through direct engagement with C-suite executives and financial leaders. In our latest executive search engagements, we surveyed 112 executives from 95 multinational, publicly traded Consumer Packaged Goods (CPG) companies with revenues exceeding $5 billion. Conducted between October 2024 and January 2025, our research highlights the most pressing challenges CFOs face in 2025.
Key findings underscore the growing influence of AI in finance, persistent economic volatility, shifting consumer spending habits, increasing regulatory complexities, tariff uncertainty, and the ongoing transformation of workforce dynamics. This report synthesizes these insights into a strategic roadmap for financial executives navigating today’s shifting business landscape.
Evolving Challenges for CFOs in 2025
The macroeconomic and geopolitical landscape of 2025 presents an intricate mix of risks and opportunities. The key challenges identified by CFOs include:
1. Persistent Inflation and Interest Rate Uncertainty
- Inflation remains elevated in key markets despite central bank efforts to curb it. Supply chain disruptions, labor costs, and energy price volatility continue to contribute to pricing pressures.
- The Federal Reserve, ECB, and Bank of England have taken a cautious approach to rate cuts, keeping borrowing costs higher than many businesses anticipated.
- CFOs are adjusting capital allocation strategies to manage debt costs while maintaining investments in technology and expansion.
2. Geopolitical Tensions and Tariff Uncertainty
- U.S.-China Trade Relations: The U.S. has introduced new tariffs on Chinese technology, EVs, and critical manufacturing components, prompting retaliatory measures from Beijing. Companies reliant on Chinese suppliers face increased costs and potential disruptions.
- EU Trade and Regulatory Challenges: The EU’s evolving regulatory landscape, including digital tax proposals and stricter sustainability mandates, is affecting global operations and increasing compliance burdens.
- Tariff Volatility Across Markets: The re-evaluation of U.S. trade agreements with key partners, including Mexico and the EU, has created uncertainty for global supply chains. Potential changes to tariffs on goods such as agricultural products, industrial equipment, and consumer goods could impact cost structures and pricing strategies.
- Middle East and Eastern Europe Instability: Ongoing conflicts have contributed to energy price fluctuations and supply chain vulnerabilities, affecting global trade routes and raw material costs.
3. Shifting Consumer Spending Patterns
- Post-pandemic excess savings have diminished, leading to softer discretionary spending, particularly in high-cost economies.
- Consumers are increasingly price-sensitive, forcing businesses to adopt adaptive pricing models and enhance value-driven product offerings.
- Inflationary pressures in emerging markets are creating uneven demand patterns, requiring region-specific pricing and supply chain adjustments.
4. Regulatory Scrutiny and Compliance Challenges
- AI Regulation: Governments worldwide are implementing new AI governance policies, requiring companies to enhance transparency and risk mitigation strategies for AI-driven decision-making.
- ESG and Sustainability Mandates: The SEC’s Climate Disclosure Rule, the EU’s Corporate Sustainability Reporting Directive (CSRD), and other emerging regulations are increasing compliance costs and requiring companies to integrate sustainability into their financial reporting.
- Corporate Tax Reforms: The OECD’s global minimum tax rules and new digital tax frameworks are prompting multinationals to reassess tax planning strategies.
5. AI and Workforce Transformation
- AI-driven automation is reshaping finance and operational roles, creating both efficiencies and the need for new skill sets in data analytics, AI governance, and cybersecurity.
- Companies must balance AI adoption with human oversight to ensure regulatory compliance and ethical AI implementation.
- The hybrid work model continues to evolve, with companies optimizing real estate strategies, adjusting talent compensation structures, and addressing tax implications for remote workforces.
Strategic Roadmap for CFOs in 2025
To navigate these evolving challenges, CFOs must focus on:
Conslusion
The financial landscape of 2025 demands a proactive, data-driven approach where AI, geopolitical risk management, and economic adaptability are critical to success. Companies that embrace innovation while maintaining financial discipline will be best positioned to navigate uncertainty, respond to tariff fluctuations, and drive sustainable growth in an increasingly complex global economy.
Jeff DeFazio
Managing Partner
These market insights from Carpe Diem Global Partners are gathered from the firm’s extensive client work leading Board, CEO, CXO, and CHRO executive search engagements for public and private multinational companies. For deeper, custom insights, contact Jeff DeFazio at Jdefazio@carpediempartners.com or Michael Whitehead mwhitehead@carpediempartners.com.
Michael Whitehead Managing Partner