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Consumer packaged goods (CPG), also known as fast-moving consumer goods (FMCG), sell quickly and have a short lifespan. CPGs are typically inexpensive, but consumers use and purchase these products daily. If you want more details on consumer packaged goods, keep scrolling to learn about this financial sector and keep your eye on your right to repair.
And, if you’re curious about your smartphone breaking sooner than planned, read our article on Planned Obsolescence.
As stated, CPGs, or nondurable goods, are inexpensive, often disposable, and always in demand. The CPG label applies to things like toilet paper, beverages, tobacco, makeup, and household cleaners. In addition to packaged dry goods, products like meat, dairy products, and baked goods fall into consumer packaged goods. Generally, any low-cost product with a shelf-life frequently purchased in large quantities counts as a CPG.
While CPG and retail are essential aspects of consumer commerce, the terms are not interchangeable. Retail is just a single chain of the CPG industry. Retail deals with the sale of products to the end user. For example, when you buy bread from the store, that’s retail. The bread you purchased is a CPG, but the consumer packaged goods industry applies to the entire supply chain that brought that bread to the store. Everything from the bread’s manufacture, transportation, wholesale, and brand development falls under the CPG umbrella.
A durable good, sometimes called a slow-moving consumer good, is a product that’s meant to last and can usually be repaired. Usually, this is a smartphone like an iPhone, which you can get an iPhone repair kit for. These products typically take up storage space for extended periods because consumers don’t need to replace them often. Examples of durable goods include products like kitchen appliances, televisions, washing machines, and couches. Due to the frequency of new models, smartphones are becoming associated with CPGs, but they are still durable. Just so you know, software used on these smartphones may be affected by the DMCA law.
What are the top CPG companies?
The top CPG companies include food industry juggernauts Nestle and Coca-Cola Company. In addition, Procter & Gamble tops the CPG charts for household and beauty products.
Is CPG a good investment?
Experts recommend CPGs as a safe but slow-growing industry. That said, ask an investment professional to see if CPGs are right for you.
Is alcohol a CPG?
Not only is alcohol a CPG, but it is one of the fastest and most successful consumer packaged goods.
STAT: The CPG industry alone contributes 10% or $2T to total US Gross Domestic Product (the total value of goods and services a country produces in a set period). (source)
STAT: Over the past year, online channels contributed to nearly 70% of overall CPG growth. (tinuiti.com)