Consumer packaged goods (CPG) are products with a short lifespan and recognizable packaging customers buy regularly. Examples include foods, clothes, drinks, products for cleaning, cosmetics, etc.
Today, the industry of consumer goods is considered one of the largest sectors. Consumer packaged goods have a short lifespan and are in constant demand. These are items customers purchase on a routine basis. They have recognizable packaging to be easily identified by buyers.
In this article, we’ll compare CPG and retail companies, explore consumer packaged goods trends, and see several examples.
Consumer Packaged Goods vs Retail
It’s essential to distinguish between CPG and retail businesses. So, let’s proceed to figure it out.
When we talk about CPG, we mean companies involved in the process of development, manufacturing, and marketing that aim at presenting the final product to the end-user. Such brands don’t only sell products but also create them. Examples include huge corporations like Procter & Gamble and Johnson & Johnson, fashion houses like Prada and Gucci. The last two design and manufacture exclusive apparel and accessories and sell these goods in their retail stores.
To compare, retail companies specialize only in selling goods and services to consumers through retail or online stores, social media, or some other effective sales channels. Amazon, Walmart, and Target are famous examples of retail companies. These well-established retailers provide customers with anything starting from food and clothes and finishing with rentals of equipment.
Now that you see the difference, it’s time to walk you through some trends.
Consumer Packaged Goods Trends
Digital technologies empowered the CPG industry to grow and prosper. Lately, the sector has undergone major changes. Now people are closely acquainted with online orders, address delivery, and even personalized products. The industry continues to introduce new trends.
- Omnichannel marketing strategy. Consumers have different shopping behaviors. That‘s why brands should analyze customers’ interests, preferences in products, and communication channels. Besides, it’s advisable to optimize companies’ activity across different marketing platforms to lead clients through the stages of their consumer journey. Omnichannel marketing implies inbound marketing methods and channels that help acquire new consumers.
- Private labels. Many brands consider creating their private labels. This process can occur in any industry: cosmetics, food, clothes, accessories, etc. Private label products are goods customers can find only in a certain store. This way, brands increase their profits and attract new customers.
- Acquiring competitors' companies. One more trend which has been observed lately is acquiring or investing in a rival brand. Unilever is a great example. Starting from 2015 this multinational giant has bought a great number of brands.
- Self-care products. Self-care is the number one priority for many people. Sales of skin care products improve drastically and continue growing.
- Meal kits. Cooking foods from scratch is always good for health but often takes a lot of time. Today, meal kits are incredibly popular especially among people busy at work or parents who don’t have time for cooking. These ready ingredients save time on preparation and allow consumers to try new dishes and cuisines.
- Sustainable goods. Many people go green and care about products that affect our environment. As a result, there’s a rising demand for goods that can’t harm our planet. Companies try to address this demand. By becoming conscious, brands help save energy, materials, preserve the public health and purity of our planet.
- Customized products. Lately, the approach has become very popular. Customized products are items you can change according to your taste. Since approximately 80% of customers would buy something from companies that offer custom products, many brands implement the strategy. Nissan lets clients design cars and Lenovo allows them to create custom laptops. Customization enables business owners to generate more sales, improve customer loyalty, and have more customer insight.
Let’s now look at some big companies in the CPG industry.
Examples of Consumer Packaged Goods
You can find examples of CPG brands and companies everywhere. A lot of people worldwide purchase drinks from Coca-Cola, home and personal care goods from Procter & Gamble, and foods from Unilever. Yet, most likely you are more familiar with their brands. They include Ariel, Downy, and Cheer for fabric care from Procter & Gamble. Unilever offers ice cream from Breyers, tea from Lipton, and beauty products from Pond’s.
To conclude, you can encounter consumer packaged goods every day on the shelves of stores. Companies that offer such products are involved in the development, manufacturing, and marketing stages.
- This article defines the term, uncovers the difference between consumer packaged goods and durable goods.
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- This article covers the definition, trends, and examples.
Last Updated: 31.05.2021