Definition: Consumer Packaged Goods

What are consumer packaged goods?

Consumer packaged goods (CPGs) are everyday items that people regularly buy for personal or domestic use. They are tangible products that are regularly consumed or disposed of through daily use.

Some common examples of consumer packaged goods are food products such as snacks, drinks, cereals and frozen meals. They also include household cleaning products, personal care products such as toiletries and cosmetics, dietary supplements and over-the-counter medicines.

Many consumer packaged goods are affordable and therefore accessible to a wide range of consumers. As they have a relatively short shelf life before they need to be replaced, companies market their brands, offers and loyalty programmes intensively through displays in large retail shops and pharmacies, where consumers make most of their purchases.

A subset of frequently purchased consumer packaged goods is referred to as "fast-moving consumer goods" or FMCG for short. FMCGs focus specifically on staple foods and beverages like packaged snacks and bottled drinks that sell at very high volumes and low margins with incredibly fast stock turnover. The main difference between CPG and FMCG lies in purchasing scale and frequency, with FMCG prioritizing products with the highest velocity.