What are CPGs?

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Consumer packaged goods (CPG) are goods consumed in a short period of time, often priced to make a modest profit on each unit sold, but tend to be very profitable due to high sales volume. Examples include food, beverages, cleaning products, and seasonal footwear.

Sometimes referred to as GPC, consumer packaged goods are any type of goods that are consumed in a short period of time. Often these products are priced to make a modest profit on each unit sold, but tend to be very profitable due to high sales volume. Many of the items used every day in homes and other settings are considered consumer staples and therefore fall under this product classification.

Many people understand packaged goods to be any item that is typically consumed in less than one calendar year from the date of purchase. Since products of this type are not renewable and are often used to meet the demands of the moment, they are constantly being replaced. This has led to a situation where manufacturers of these products produce large quantities to meet constant consumer demand. At the same time, high demand has led to intense competition among manufacturers to capture a larger market share and thus increase their volume sales profits.

Some of the best examples of consumer packaged goods are food and beverages. Items such as produce, canned soft drinks, fresh meats, milk, and condiments are intended for use in a short period of time. While some foods, especially canned goods, are packaged so that they can be used for periods of more than one year, other packaged products, such as cereals, are intended for consumption within one year of production.

Cleaning products are another example of consumer packaged products used on a daily basis in many homes around the world. While many of these products have a much longer shelf life, they are typically consumed weeks or months after purchase. This leads to a situation where many cleaning product producers will periodically hold sales, hoping to attract the attention of consumers who are running out of their favorite cleaning product, and thus motivate them to give the different product a try.

Seasonal footwear is another oft-cited example of consumer packaged goods. Many discount retailers carry inexpensive footwear that is designed to be worn during the summer months, and can be easily thrown away at the end of the season. There are even examples of casual wear, such as bathing suits and summer shorts, that are sold as seasonal items and may or may not be retained once the season is over.

In general, consumer packaged goods are any type of goods that are intentionally designed for quick consumption. This is in contrast to durable goods like furniture or major kitchen appliances, which are meant to last for years and even decades. Many consumer packaged goods are consumed within a week of purchase and are replaced as part of the ongoing routine of home maintenance.

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