3M's Consumer Segment Struggles Amid Soft Demand: What's Next?

3M Company MMM has been facing persistent weakness in its Consumer segment. In the second quarter of 2026, the segment’s organic revenues declined 2.1% year over year, reflecting continued softness in consumer retail markets. Muted discretionary spending has remained a key headwind, weighing on demand and limiting growth across the segment.

Consumer-focused businesses worldwide continue to face a challenging macroeconomic environment, marked by inflationary pressures, muted discretionary spending and changing consumer behavior. These headwinds have weighed on demand for household and personal-use products, limiting growth opportunities for 3M’s Consumer segment. Weak housing activity has also pressured the home improvement business, while demand for packaging and expression products remained subdued in the second quarter.

Despite these challenges, 3M has a strong market presence, supported by a diversified product portfolio and recognized brands across home care, safety and lifestyle categories. MMM is focusing on operational efficiency, portfolio optimization and innovation to navigate soft demand conditions while protecting margins. Also, a gradual improvement in macroeconomic conditions and a stabilization in consumer spending could help drive a recovery in demand. 

Amid ongoing demand challenges, 3M’s focus on cost management and its diverse portfolio is expected to provide support for growth in the quarters ahead.

Segmental Snapshot of MMM’s Peers

Among 3M’s major peers, The Procter & Gamble Company’s PG Fabric & Home Care segment generated revenues of $7.4 billion in the fourth quarter of fiscal 2026. The Procter & Gamble segment’s results were up 1% year over year. The Procter & Gamble segment’s organic sales were unchanged year over year in the quarter.

Another peer of MMM, Avery Dennison Corporation’s AVY Materials Group reported sales of $1.80 billion in the second quarter of 2026, up 15.9% year over year. Avery Dennison’s segment sales rose 15.9% year over year. On an organic basis, Avery Dennison’s segment organic sales improved 9.7%.

The Zacks Rundown for MMM

Shares of 3M have gained 17.2% in the past year against the industry’s decline of 24%.

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From a valuation standpoint, 3M is trading at a forward price-to-earnings ratio of 20.19X, above the industry average of 17.71X. MMM carries a Value Score of D.

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The Zacks Consensus Estimate for MMM’s earnings for 2026 has increased 3% in the past 60 days.

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MMM stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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