TECHNOLOGY Q&A

Consumer Packaged Goods

What are consumer packaged goods?

Consumer packaged goods (CPGs) is an industry term for merchandise that customers use up and replace on a frequent basis. Examples of consumer packaged goods include food, beverages, cosmetics, and cleaning products. CPGs can be contrasted with durable goods (DGs), an industry term for merchandise that is not consumed or destroyed in use and is generally not replaced until the merchandise experiences a problem. Examples of durable goods include appliances, furniture, and automobiles.

Typically, CPG merchandise is sold by retailers in brick-and-mortar stores and packaging is designed to differentiate a product from its competitors on a pharmacy, grocery, or a big box store shelf. Because shelf space is a finite commodity, the CPG market is highly competitive. Until recently, it’s been difficult for manufacturers to take advantage of the internet and sell CPG through e-commerce channels.