Consumer packaged goods (CPG) are products with a short lifespan and recognizable packaging that 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 business sectors. Consumer packaged goods have a short lifespan and are in constant demand as customers purchase them on a routine basis. They usually have recognizable packaging designed 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 their end user. Such brands don’t only sell products but also create them. Examples include huge corporations like Procter & Gamble and Johnson & Johnson or 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 other effective sales channels. Amazon, Walmart, and Target are famous examples of retail companies. These well-established retailers provide their customers with anything starting from food and clothes and finishing with equipment rentals.
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 some 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 and preferences in products and communication channels. Besides, it’s advisable to optimize your company’s activity across different marketing platforms to lead your clients through all 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 that customers can find only in a specific store. This way, brands increase their profits and attract new customers.
- Acquiring competitors’ companies. One more trend that 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 significant number of brands.
- Self-care products. Self-care is the number one priority for many people. Skincare products sales improve drastically and continue growing.
- Meal kits. Cooking foods from scratch is always good for health, but it often takes a lot of time. Today, meal kits are incredibly popular, especially among people who are busy at work or parents who don’t have time for cooking. These pre-portioned 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 and preserve the public health and purity of our environment.
- 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 their clients design cars, and Lenovo allows buyers 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. However, you are probably 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 any store shelves. Companies that offer such products are involved in the development, manufacturing, and marketing stages.
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Last Updated: 22.03.2023