Consumer Packaged Goods - CPG

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DEFINITION of 'Consumer Packaged Goods - CPG'

A type of good that is consumed every day by the average consumer. The goods that comprise this category are ones that need to be replaced frequently, compared to those that are usable for extended periods of time. While CPGs represent a market that will always have consumers, it is highly competitive due to high market saturation and low consumer switching costs.

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BREAKING DOWN 'Consumer Packaged Goods - CPG'

The consumer packaged goods industry is one of the largest in North America, valued at approximately US$2 trillion. Although growth has slowed in this industry, companies that provide CPGs still benefit from large margins and strong balance sheets.

Some basic examples of CPGs are food and beverages, clothing, tobacco and household products.

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RELATED FAQS
  1. What are some important financial ratios to evaluate with respect to consumer packaged ...

    Since companies that sell consumer packaged goods are traditionally low-margin, high-volume businesses, the most important ... Read Full Answer >>
  2. What economic factors affect the performance of the consumer packaged goods industry?

    Three of the primary economic factors that influence the performance of companies in the consumer packaged goods (CPGs) industry ... Read Full Answer >>
  3. How will consumer packaged goods companies' stocks react to changes in oil prices?

    The stock prices of consumer packaged goods companies should react favorably to any significant decline in oil prices. Lower ... Read Full Answer >>
  4. What are the differences between a bond's yield to maturity and the spot rate?

    One should expect income when buying stocks in the consumer packaged goods sector. This sector is considered a defensive ... Read Full Answer >>
  5. What does marginal utility tell us about consumer choice?

    In microeconomics, utility represents a way to relate the amount of goods consumed to the amount of happiness or satisfaction ... Read Full Answer >>
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    There are many ways to achieve product differentiation, some more common than others. Horizontal Differentiation Horizontal ... Read Full Answer >>

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