What is CPG?

Anyone who’s familiar with the world of retail will have undoubtedly heard the term ‘CPG’ before. But what does it refer to and mean in regards to today’s retail industry? Let’s also explore some sample CPG brands and CPG Product examples. Let’s take a look.

What is CPG?

What Are CPG Products ?

Consumer Packaged Goods, or CPGs for short, are defined as physical products that consumers buy on a routine basis. They’re most of the items you see when walking into a store – from durable goods to household products – and represent a large portion of the retail purchases we make in our everyday lives. Consumer packaged goods (CPG) are items bought for individual use. Consumer goods are sold to customers directly for their own use; they are not meant for further manufacture or resale. The majority of consumer items are either sold online or on shop shelves. For example, cleaning products may easily sell online. However, consumers do not take online services for the sensitive product line. Toilet paper, meat, drinks, cigarettes, cosmetics, and home cleansers are all subject to the CPG label. Manufacturing, distribution, brand creation, and retail sale of nondurable items are all included in the CPG industry.

Understanding The Difference Between CPG And FMCG

When discussing the consumer packaged goods (CPG) industry, it’s worth also mentioning FMCG, its definition and how it relates to the latter. FMCGs, or Fast Moving Consumer Goods, are products that are sold to the public on a frequent and regular basis. They can be characterized as goods that consumers buy at a high pace and demand, and are often more casual and relatively low-cost. FMCGs are similar in nature to traditional CPGs, however they differ in the way that they move through the manufacturing and sale process faster and usually need their shelf space restocked more often. For example, toilet paper beverages, deodrant, potato chips, beauty products, etc. are FMCG. Some of these products have often high competition.

Understanding the distinctions between the various categories of consumer goods is crucial for marketing reasons since each category will call for a different set of strategies. For instance, you probably won’t need to spend as much money on marketing and promotion if you’re selling a product that is in great demand. To guarantee that consumers are persuaded to buy the goods, you will need to use a more aggressive marketing and advertising strategy if your product is seen as an unsought good. Consumers purchase durable goods easily for their households. For example, washing machine is a durable good. Therefore, washing machines can be sell easily.

People can also purchase consumer packaged goods (CPG) through online retailers. Consumer preferences vary when deciding to purchase consumer packaged goods (CPG). Many people believe that durable goods can only be purchased through brick and mortar stores. Every CPG firm competes in a highly competitive market and limited shelf space.

Another well-known CPG example is frozen dinners. Customers frequently buy these high-volume perishable goods from retailers throughout the world for immediate consumption and without much thought. Some consumer packaged goods have a short lifespan like dairy products. These goods often sell quickly. This is because these products expire after a set period. Retailers know this fact and they try to sell these products quickly. Retailers provide their services by selling durable goods to customers. They improve their business by offering their services to customers. Their sales have increased by selling CPGs. There is no doubt that the consumer packaged goods industry is highly competitive.

The terms CPG and FMCG are commonly used in exchange for one another, and some argue that they’re the same thing. The only factor that sets the two apart is their turnover rate, and many companies manufacture both CPG and FMCG products.

What Are CPG Companies ? What Do They Look Like?

As you might assume by its name, a CPG company is a business that specifically focuses its operations on CPG products. The US Gross Domestic Product is made up of 10%, or $2T, by the CPG business alone (the total value of goods and services a country produces in a set period). These organizations manufacture physical goods for consumer use, and because of their public-facing model, are some of the most recognizable brands on the planet. The following are some examples of top CPG companies and quick breakdowns of what they offer.

Coca-Cola

One of the most iconic CPG brands in the world, Coca-Cola is responsible for manufacturing and distributing non-alcoholic beverages. Founded in 1847, the company is headquartered in Atlanta, Georgia and today satisfies consumer demand in over 200 countries around the world.

PepsiCo

Another world-renowned CPG company, PepsiCo focuses its operations on the production and marketing of snacks, drinks, and other food items. The company was founded in 1898 and is currently headquartered in Purchase, New York.

CPG Drink Brands on Supermarket Shelves

Unilever

Unilever is a British-Dutch CPG brand that provides consumer goods in the food, homecare, and personal care categories. Some of its most popular brands include Dove, Lipton, and Hellman’s. The company was formed in 1930 through the merger of two pre-existing businesses and is headquartered in both London and Rotterdam.

P&G

Procter & Gamble, or P&G, is an American company that specializes in a wide range of products including laundry detergent, skincare items, and diapers. Headquartered in Cincinnati, Ohio, the company was founded in 1837 and today operates in over 70 countries around the world.

Johnson & Johnson

One of the world’s largest CPG companies, Johnson & Johnson produces a range of health-related consumer goods and products. Some of their most popular subsidiary consumer brands include Aveeno®, Motrin®, Nicorette® and BAND-AID®.

Kraft Heinz Company

Being the result of a merger between two prominent firms in 2015, Kraft Heinz is one of the largest CPG companies in the world. It encompasses Kraft, a business specializing in the sale of cheese and Heinz, a company known for its extensive range of condiment products.

Nestlé

A Swiss multinational CPG brand , Nestlé is the largest food company in the world. It focuses its operations on baby food, bottled water, coffee, and other beverages. Headquartered in Switzerland, the company was founded in 1866 and today operates in 189 countries.

Mars, Incorporated

An American CPG brand, Mars is most well-known for its production of chocolate candy. Some of its most popular brands include M&M’s, Snickers, and Twix. The company also owns a number of pet food brands, including Pedigree and Whiskas. Founded in 1911, Mars is headquartered in McLean, Virginia.

The Hershey Company

One of the oldest CPG companies in the United States, The Hershey Company was founded in 1894 and is headquartered in Hershey, Pennsylvania. The company is most well-known for its chocolate products, including Hershey’s Kisses, Reese’s Peanut Butter Cups, and Twizzlers.

Today’s market is incredibly diverse, and there are CPG companies to meet the needs of just about every consumer. These businesses provide physical goods that are necessities or otherwise enhance our day-to-day lives, making them an important part of the global economy.

As we have already discussed the consumer packaged goods potential is enormous, and it is extremely beneficial for CPG companies to do their proper marketing. CPG marketing allows the customers to get in-depth detail about their desired products. It helps companies to increase their sales. They can offer their services more easily to end users via CPG marketing. reach out to Gourmet Ads today to find out more.

Let’s Get Started ! 

Let the Gourmet Ads team walk you through all the options available to ensure that your Food, Supermarket, Beverage or Kitchen campaign has the best possible combination of Premium Guaranteed Inventory, First Party Data and Programmatic solution elements.