What are Consumer Packaged Goods? 

Key Takeaways from the Article: 

• Consumer Packaged Goods (CPG) are everyday items that consumers use and repurchase frequently, typically sold in plastic, paper and tin packaging. 
• The CPG industry is vast, encompassing food, beverages, household products, personal care items, and more. 
• CPG products share characteristics like mass production, branding, and widespread distribution through retail channels. 
• The sector faces challenges including shifting consumer preferences, e-commerce growth, and sustainability concerns. 
• Experience in the CPG industry involves understanding consumer behavior, supply chain management, and rapidly evolving market trends. 

What Are Consumer Packaged Goods? 

The Consumer Packaged Goods (CPG) industry Is a field that touches nearly every aspect of our daily lives, yet many people outside the industry struggle to define it precisely.  

Consumer Packaged Goods, commonly abbreviated as CPG, are products that consumers use and repurchase nearly every day. These items are typically sold in packaging and are designed for immediate consumption or use. The term “packaged” is key here, as it distinguishes these products from bulk goods or raw materials. 

From the toothpaste you use in the morning to the snacks you consume during the day, and the cleaning products you use to tidy up your home – all of these fall under the umbrella of CPG. It’s an industry that’s omnipresent in our lives, yet often overlooked in its complexity and impact. 

According to Zion Market Research, the global CPG market size was worth around $160.75 billion in 2022 and is predicted to grow to around $244.92 billion by 2030 with a compound annual growth rate (CAGR) of roughly 5.40% between 2023 and 2030. This growth shows the essential nature of these products in our daily lives and the industry’s ability to adapt to changing consumer needs. 

Common CPG characteristics 

While the CPG industry is made up of a wide range of products, there are several characteristics that are common across the sector: 

• Mass production: CPG products are typically manufactured in large quantities to meet widespread demand and achieve economies of scale. 
• Branding: Strong brand identity is crucial in the CPG world. Companies invest heavily in marketing and advertising to build brand recognition and loyalty. 
• Packaging: As the name suggests, packaging is a defining feature. It serves multiple purposes, including protection, preservation, and marketing. 
• Wide distribution: CPG products are available through various retail channels, including supermarkets, convenience stores, and increasingly, e-commerce platforms. 
• High purchase frequency: Consumers buy these products regularly, often weekly or even daily. 
• Low unit cost: Most CPG items are relatively inexpensive, encouraging frequent purchases. 
• Short shelf life: Many products, especially in the food and beverage categories, have limited shelf lives. 
• High competition: The CPG market is highly competitive, with multiple brands often competing for market share in each product category. 

Types of consumer products 

While all CPG products share certain characteristics, they can be categorized into different types based on consumer behavior and purchase patterns.  

Understanding these categories is important for marketing strategies and supply chain management: 

1. Convenience products: Items that consumers purchase frequently with minimal effort. Examples include bread, milk, and toothpaste. These products are typically widely available and have low unit costs. 

2. Shopping products: These are products that consumers compare on attributes such as quality, price, and style before making a purchase. Examples might include clothing, furniture, or electronics. While not all shopping products fall under CPG, some higher-end personal care or household items might be considered both shopping products and CPG. 

3. Specialty products: These are unique items for which consumers are willing to make a special purchasing effort. In the CPG world, this might include premium organic foods or high-end cosmetics. 

4. Unsought products: These are products that consumers don’t typically think about until they need them. Examples in the CPG sector might include over-the-counter medicines or emergency supplies. 

Examples of consumer-packaged goods 

To give you a clearer picture of what falls under the CPG umbrella, here’s a list of common categories and examples: 

Food and beverages:  

• Snacks (chips, cookies, candy)  
• Soft drinks and juices  
• Packaged meals and ingredients 
• Dairy products 

Personal care:  

• Shampoo and conditioner  
• Toothpaste and mouthwash  
• Deodorant  
• Skincare products 

Household products:  

• Cleaning supplies  
• Laundry detergent 
• Air fresheners  
• Paper products (toilet paper, paper towels) 

Over-the-counter medications:  

• Pain relievers  
• Cold and flu remedies  
• Vitamins and supplements 

Pet care:  

• Pet food  
• Treats  
• Grooming products 

This list is far from exhaustive but gives you an idea of the breadth of products that fall under the CPG umbrella. 

Changes in the CPG market 

The CPG industry, like many others, is undergoing significant changes driven by shifting consumer preferences, technological advancements, and global trends. As a recruiter, we’ve observed how these changes are reshaping the skills and expertise companies are looking for in their employees.  

Some key trends impacting the CPG sector 

• E-commerce growth: The rise of online shopping has transformed how consumers purchase CPG products. According to a report by McKinsey, e-commerce sales in the CPG industry grew by 40% in 2021 alone, accelerated by the COVID-19 pandemic. This shift has led to increased demand for professionals with digital marketing and e-commerce expertise. 

• Sustainability focus: Consumers are increasingly concerned about the environmental impact of their purchases. This has led to a surge in eco-friendly products and packaging, and a need for professionals with expertise in sustainable practices. 

• Health and wellness trend: There’s a growing consumer preference for healthier, natural, and organic products. The global organic food and beverages market size was valued at $231.52 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 13.9% from 2024 to 2030. This trend is driving innovation in product formulation and creating demand for professionals with backgrounds in nutrition and food science. 

• Personalization: Consumers increasingly expect products tailored to their individual needs and preferences. This trend is driving investments in data analytics and artificial intelligence to understand and predict consumer behavior. 

• Direct-to-consumer (DTC) models: More CPG companies are exploring DTC channels to build closer relationships with consumers and gather valuable data. This shift is creating new roles at the intersection of retail, marketing, and technology. 

These changes are not just affecting product development and marketing strategies; they’re also reshaping the skills and expertise that CPG companies are looking for in their employees. As recruiters, we’ve seen increased demand for professionals with backgrounds in data analytics, e-commerce, sustainability, and digital marketing, alongside traditional CPG skills like brand management and supply chain expertise.

CPG vs. FMCG: What’s the difference? 

In discussions about the consumer goods industry, you’ll often hear the terms CPG and FMCG used interchangeably. While they are closely related, there are subtle differences between the two: 

Consumer Packaged Goods (CPG) 

• Refers to a wide range of products that consumers use regularly and repurchase frequently 
• Includes both perishable and non-perishable items 
• Typically has a longer shelf life compared to FMCG 

Fast-Moving Consumer Goods (FMCG) 

• A subset of CPG that focuses on products with a rapid turnover and relatively low cost 
• Usually has a shorter shelf life 
• Includes mainly perishable goods and products that are consumed quickly 

Basically, all FMCG products are CPG, but not all CPG products are necessarily FMCG. For example, a bottle of shampoo would be considered CPG, but might not be classified as FMCG due to its longer usage period. On the other hand, a carton of milk would be both CPG and FMCG due to its short shelf life and frequent repurchase. 

From a recruitment perspective, the skills required for roles in CPG and FMCG companies are often similar, with a focus on understanding consumer behavior, managing supply chains, and navigating rapidly changing market trends. 

What is CPG experience? 

When we talk about CPG experience in the context of recruitment, we’re referring to a professional background that encompasses various aspects of the consumer packaged goods industry. This experience can be invaluable across different roles and departments within CPG companies.  

Here’s what CPG experience typically entails: 

• Brand Management: Understanding how to build, maintain, and grow consumer brands is a core competency in the CPG world. 
• Product Development: Experience in creating new products or improving existing ones to meet consumer needs and market trends. 
• Marketing: Expertise in developing and implementing marketing strategies to promote CPG products across various channels. 
• Sales: Understanding of retail partnerships, trade marketing, and the dynamics of selling CPG products through different channels. 
• Supply Chain Management: Knowledge of the complexities involved in manufacturing, distributing, and retailing CPG products efficiently. 
• Consumer Insights: Ability to analyze consumer behavior and market trends to inform business decisions. 
• E-commerce: Growing importance of online retail channels for CPG products. 
• Sustainability: Understanding of sustainable practices in product development, packaging, and supply chain management. 
• Data Analytics: Ability to use data to drive decision-making in areas like product development, marketing, and supply chain optimization. 
• Regulatory Compliance: Familiarity with food safety regulations, labeling requirements, and other relevant legal considerations. 

CPG experience is highly transferable within the industry, as many of the core principles and challenges are similar across different product categories. This makes professionals with CPG backgrounds highly sought after in the job market. 

The CPG industry is a vast and complex sector that touches nearly every aspect of our daily lives. From the food we eat to the products we use to clean our homes, CPG companies play a crucial role in meeting our everyday needs. 

Whether you’re a professional looking to enter the CPG industry or a company seeking to build a team equipped to tackle the challenges of today’s market, understanding the fundamentals of what CPG is and how it’s evolving is essential. The CPG industry will undoubtedly continue to play a significant role in our daily lives and the global economy, making it an exciting and rewarding field for career growth and innovation. Contact The Sterling Choice for your CPG recruitement needs.