What Are Consumer Packaged Goods (CPG)?

Consumer packaged goods (CPG) are everyday items that consumers use regularly and often replenishꦬ. Products lik🐽e food and beverages, cosmetics, and cleaning products are consumer packaged goods.

Demand for consumer packaged goods is relatively steady in good and bad economic times, but this is still a highly competitive sector of the U.S. economy. Virtually every product in the sector has many competing brands, and the 澳洲幸运5开奖号码历史查询:switching costs for consumers are low.

Their short lifespan is what distinguishes consumer packaged goods from durable goods. Durable goods are more expensive but are e🔴xpected to last for years before they need to be replaced. Home appliances and cars are examples of durable goods.

Consumer Packaged Goods (CPG)

Despite experiencing a slowdown in growth over recent years, the consumer packaged goods industry is one of the largest industries in North America. It contributed approximately $2 trillion to U.S. gross domestic product (GDP) in 2023, according to a report by the Consumer Brands Association.

Se๊ctor leaders include well-established companies lik🦩e Coca-Cola, Procter & Gamble, and Colgate-Palmolive.

Although CPG makers generally enjoy healthy margins and robust balance sheets, they must continuously fight for shelf space in stores. Even well-known companies continuously invest in advertising to increase 澳洲幸运5开奖号码历史查询:brand recognition and stimulate sales.

Consumer packaged goods get their name from their wrappings, which arꦇe designed to be easily recognized and to capture attention on stor𓆏e shelves.

Examples of Consumer Packaged Goods

澳洲幸运5开奖号꧒码历史查询: Consumer package෴d goods have a short shelf life.

Fo👍r example, cosmetics are packaged in small quantities and are meant to be used up and replaced quickly. Similar products are sold at widely varying price po𒉰ints depending mostly on their marketing strategies.

Frozen dinners are available in a wide variety and are meant for immediate consumption. Popular mea🙈ls m⛎ay be produced for decades while new items are added as consumer preferences change.

Durable Goods

Durable goods are designed for extended use. Their purchase can in💦volve con💦siderable thought and comparison shopping given their high price tags.

Personal computers, refrigerators, and 🌠automobiles are examples of durable goods.

Durable goods are more vulnerabꦍle to economic downswings than packaged goods. Consumers are more likely to delay major purchases in times of economic uncertainty.

T༺his is especially true with consumers who own old🧜er versions of a durable good. A family may opt to squeeze a few more years from an outmoded washing machine rather than upgrade to a newer model.

Sales of packaged goods like bread, milk, and toothpaste are less affected by market fluctuations. Consumers may switch to cheaper brands or use their purchases more frugally but they can't do without them entirely.

The Bottom Line

Consumer ꧑packaged goods, or CPGs, are goods used daily by average consumers. They are used quickly and therefore must be repurchased quickly. Examples are food, beverages, personal care items, and cleani𓆏ng supplies. They are different from durable goods, such as computers or washing machines, which are more expensive and last many years.

The consumer packaged goods industry is one of the largest industries in the U.S. economy. Consumers continue to purchase consumer packaged goods even during economic downturns, though they may hold off on buying durable goods during the same time.