What Are Consumer Packaged Goods?
Sometimes referred to as CPGs, consumer packaged goods are any type of goods that are consumed in a short period of time. Often, these goods are priced to make a modest profit off each unit sold, but tend to be very profitable due to the high volume of sales. Many of the items that are used every day in households and other settings are considered consumer staples and thus part of this classification of products.
Many people understand that packaged goods are any items that are generally consumed in less than one calendar year from the date of purchase. Since goods of this type are not renewable and are often used to satisfy the demands of the moment, they are constantly being replaced. This has led to a situation in which manufacturers of these goods produce large quantities in order to meet the constant demand from consumers. At the same time, the high demand has led to a great deal of competition among manufacturers to capture a larger market share and thus increase their profits by way of volume sales.
Some of the best examples of consumer packaged goods are food and beverage products. Items like fresh produce, canned sodas, fresh meats, milk, and condiments are all intended for use in a short period of time. While some foods, especially canned products, are packaged so they remain usable for periods of longer than a year, other packaged products such as cereal are intended for consumption within one year of production.
Cleaning products are another example of consumer packaged products that are used daily in many households around the world. While many of these products have a much longer shelf life, they are normally consumed within weeks or months of their purchase. This leads to a situation where many producers of cleaning products will periodically run sales, hoping to attract the attention of consumers are running low on their favorite cleaning product, and thus motivate them to give the different product a chance.
Seasonal footwear is another frequently cited example of consumer packaged goods. Many discount retailers carry inexpensive footwear that is designed for use during the summer months, and can easily be discarded at the end of the season. There are even examples of casual clothing, such as swimsuits and summer shorts, that are sold as seasonal items and may or may not be retained once that season is over.
In general, consumer packaged goods are any type of goods that are intentionally designed for rapid consumption. This is in contrast to durable goods like furniture or major kitchen appliances, which are intended to last for years and even decades. Many consumer packaged goods are consumed within a week of purchase, and are replaced as part of the ongoing routine of maintaining the home.
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