Consumer Goods: CPG Examples and Trends (2024)

When was the last time you bought boxed food, soap, or toothpaste? Like many consumers, you probably buy these items several times a month. These products (prepared meals, toiletries, etc.) are consumer packaged goods (CPG) and are part of a multi-trillion dollar industry.

Consumer packaged goods are a mainstay of brick-and-mortar retail and a major part of the e-commerce economy. Here’s an overview of CPG, including key trends in the industry.

What is Consumer Packaged Goods (CPG)?

Consumer packaged goods (CPGs) are non-durable products that people buy and consume immediately. They can typically be found in grocery stores, pharmacies, and convenience stores. Three elements define CPGs: they have high turnover, are a necessity for daily life, and have consistent consumer demand. Examples of consumer goods include:

• food. Snacks, cereals, frozen meals and drinks.

• Household goods. Cleaning supplies, toilet paper, batteries.

• Personal care products. Cosmetics, toiletries, hygiene products, over-the-counter medicines.

Consumer packaged goods are distinct from durable goods and are classified into different types. Consumer Goods This will continue for years, if not decades. The CPG sector is highly competitive, with manufacturers and retailers competing for brand loyalty, advertising, and Packaging, Pricing Strategyand Distribution Network To gain market share.

CPG vs FMCG: What’s the difference?

FMCG (Fast Moving Consumer Goods) is a subset of CPG that specifically refers to products that have a high turnover rate. These items move quickly off the shelves and are purchased daily or weekly. Examples of FMCG include household staples like bread, milk, eggs, and toilet paper, as well as high-consumption items like coffee, snacks, and soda.

CPG is a broader category that includes all goods that are purchased frequently, while FMCG focuses specifically on fast-selling goods. CPGs can vary widely in cost and package size, while FMCG typically have a lower cost per unit and higher sales volumes. FMCG are often, but not always, perishable goods. For example, milk is FMCG, but so is Coca-Cola.

CPG Industry Trends

Valuation Approximately $2 trillionThe North American CPG industry is experiencing significant growth and transformation. Due to factors such as demographic shifts and changing consumer preferences, the industry is set to undergo significant change over the next few years.

CPG Growth

Consumer spending on CPG products is Approaching $2.8 trillion By 2029, it will be driven by several key factors.

• Increased disposable income. Rising incomes in emerging markets have led to increased consumer spending on CPG brands in recent years.

• Population growth. A growing global population will increase the overall demand for goods and services, expanding CPG’s consumer base.

• Changing consumer preferences. Consumers are increasingly demanding healthier, more sustainable and more personalized products.

Market potential

Three factors are shaping the market potential for CPG:

1. New international markets. Emerging markets such as China, India and Southeast Asia offer great potential for CPG growth due to their large and rapidly growing populations.

2. Electronic commerce. The Beginning CPG E-commerce Omnichannel shopping creates new opportunities for brands to reach consumers directly and provide personalized shopping experiences.

3. New science and technology. Technological advancements such as artificial intelligence and data analytics are helping CPG companies optimize their global supply chains and allowing CPG marketers to better personalize their outreach.

Changes in the CPG industry

Over the past few years, the CPG industry has seen significant changes in the following directions:

• Health and wellness. client More and more priority Food and personal care products are being made with healthier ingredients, and retailers are accordingly allocating more shelf space to these products.

• health care. Looking more closely at the wellness sector, the CPG market is Showing growth Non-prescription medicines and over-the-counter health products, such as pain relievers, cold medicines, vitamins, Home remedies.

• Direct to consumer (D2C) model. More CPG companies are bypassing traditional retail stores and selling directly to consumers online, giving them greater control and data analytics.

• Private brand. Retailers are increasingly developing Private brand A brand that offers high quality products at competitive prices.

CPG Company Examples

when Hayday Canning When they launched their canned bean line, co-founders Kat Kavner and Jamie Lynn Talley believed they could sell a consumer packaged good that stood out from their competitors’ standard offerings. “Canned food is a huge industry, but it gets a lot of attention because the food on the shelves is, you know, pretty boring, cheap, everyday items,” Kat wrote in a blog post. Shopify Master Podcasts“It’s nothing particularly innovative or exciting or flavorful.” That all changed when Hey Day launched a line of canned beans designed for consumers who value flavor and high quality, but also prefer the convenience of simply pulling a can from the pantry.

Breaking into the CPG market is especially difficult. After all, CPG products tend to be easily interchangeable, and consumers often buy from established brands out of habit. “A key metric for CPG is velocity,” Kat says. “How many of each item are you selling in a given store, in a given week?” Heyday’s extensive marketing efforts have helped them keep their products top of mind for consumers and keep sales volumes at sustainable levels. Free in-store samples, coupons, and ample funds Viral Marketing All these campaigns contributed to establishing the Heyday brand.