Consumer Packaged Goods…What Are They?

The consumer packaged goods (CPG) market has expanded in the past few years. CPGs are products used by the average consumer which are updated and replaced over time. They are priced for a modest profit, and they typically gather a high sales volume. Some renowned CPG brands are PepsiCo, Nestlé, and Procter & Gamble. Manufacturers organize consumer packaged goods into four categories:

  1. Food and Beverage – This is the most common CPG due to its varying shelf life. These include milk, canned sodas, and fresh meats, which consumers use over a short period of time.
  2. Beauty and Wellness – This category includes makeup, skincare, and supplements. Like food, cosmetics also have a short shelf-life since they can quickly deteriorate in certain temperatures. 
  3. Apparel – This includes all clothing items such as shirts and hats. Some seasonal products are only intended for a specific part of the year, and many consumers and retailers discard them when the season is over. Swimsuits are an example of this.
  4. Household Products – This includes all products used around the home, such as cleaning supplies and pesticides. While cleaning supplies have longer shelf lives than other CPGs, companies run their sales periodically to draw in consumers who might be out of the supplies they need.
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Retailers purchase CPGs frequently due to their high demand and varying shelf life. While food and beverages tend to expire sooner than other products, items from the apparel category, for example, are sold seasonally and can be replaced yearly. CPGs are also packaged in a way that is easy to recognize so that consumers can identify the product quickly and effortlessly. 

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Because of the growth of the CPG market, brands constantly battle for shelf space, so packaging is crucial for increasing sales. CPG companies spend a significant amount of their budget on advertising to increase their brand recognition and sell more of their products.

CPGs vs. Durable Goods

CPGs are perishable and frequently replaced or replenished, which contrasts with durable goods. Durable goods are meant to last for several years, and they receive extensive use. These products include cars, refrigerators, and furniture, and they are viable for a minimum of three years. Given how durable goods last longer than CPGs, they have higher price tags. Because of the more substantial price tag and larger investment, shoppers often research durable goods more than they research CPGs before making a purchase. Durable goods get considerably less replacement compared to CPGs such as food and cleaning supplies.

During times of economic instability, consumers may hold onto their money when considering new durable goods. If someone owns an automobile they want to replace, they may choose to wait until they have the funds to replace it if the market is fluctuating. However, CPGs are not as significantly affected by economic changes. CPG companies can more easily move products to shelves because of their price and because of the nature of the products.

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The Future of CPGs

As the years progress, the CPG industry continues to grow. Many large-name brands have become involved in the CPG market by manufacturing their products and selling direct-to-consumer (DTC). Online shopping has also made DTC sales skyrocket, as consumers can buy CPGs online without visiting a brick-and-mortar store. While the method of purchasing CPGs has changed, the market continues to expand.

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If you’re looking for resources about how to get into the CPG market, we can help. RIVIR CPGs hit the shelves quickly and efficiently, and our platform allows direct communication with manufacturers.

For more information about the RIVIR Platform and CPGs, contact us today.



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