Consumer Packaged Goods - CPG

AAA

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.

INVESTOPEDIA EXPLAINS '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.

VIDEO

Loading the player...
RELATED TERMS
  1. Food Industry ETF

    An exchange-traded fund that invests in food and beverage companies, ...
  2. Manufacturer's Suggested Retail ...

    The amount of money for which the company that produces a product ...
  3. Consumer Price Index - CPI

    A measure that examines the weighted average of prices of a basket ...
  4. Balance Sheet

    A financial statement that summarizes a company's assets, liabilities ...
  5. Halo Effect

    The halo effect is a term used in marketing to explain the bias ...
  6. Recessionista

    A person who is able to remain stylish during times of economic ...
RELATED FAQS
  1. How is the basket of goods selected for the Consumer Price Index?

    In the United States, the inflation level in the economy is approximated by the Bureau of Labor Statistics via a basket of ... Read Full Answer >>
  2. What other sectors are most highly correlated with the automotive sector?

    The automotive sector is a broad category correlated with a variety of related industries. Auto parts manufacturers and raw ... Read Full Answer >>
  3. How do you calculate the income effect distinctly from the price effect?

    Economists calculate the income effect separately from the price effect by keeping real income constant in the calculation. ... Read Full Answer >>
  4. What's the difference between the income effect and the substitution effect?

    The economics concepts of income effect and substitution effect express changes in the market and how these changes impact ... Read Full Answer >>
  5. What's the difference between the substitution effect and price effect?

    The substitution effect is caused solely by the change in price of a consumer item. The price effect relates directly to ... Read Full Answer >>
  6. What's the difference between economic value added (EVA) and producer surplus?

    The difference between economic value added (EVA) and producer surplus is that EVA measures the returns of a company above ... Read Full Answer >>
Related Articles
  1. Economics

    What are Consumer Packaged Goods?

    Consumer packaged goods, CPGs, are items that consumers use and purchase often.
  2. Investing Basics

    Industry Handbook

    In this feature, we take an in-depth look at the various techniques that determine the value and investment quality of companies from an industry perspective.
  3. Entrepreneurship

    Cost-Push Inflation Versus Demand-Pull Inflation

    Gain a deeper understanding of aggregate supply and demand, forces which raise the price of goods and services.
  4. Markets

    A Look At Corporate Profit Margins

    Take a deeper look at a company's profitability with the help of profit margin ratios.
  5. Budgeting

    22 Ways To Fight Rising Food Prices

    As food costs rise it can be difficult to stay on budget. Here are some handy tips to spend less at the till.
  6. Options & Futures

    Cyclical Versus Non-Cyclical Stocks

    Investing during an economic downturn simply means changing your focus. Discover the benefits of defensive stocks.
  7. Savings

    How to Invest in Liquor (and Avoiding the Hiccups)

    Investing in liquor has been profitable for ages but there could be some hiccups along the way.
  8. Economics

    What are Consumer Goods?

    Products that are purchased for consumption by the average consumer. Clothing, food, automobiles and jewelry are all examples of consumer goods
  9. Mutual Funds & ETFs

    This ETF Can Weather Any Market Condition

    Looking for a winning ETF that's capable of performing in almost any environment?
  10. Home & Auto

    The Real Cost Of A Speeding Ticket

    Speeding can come at a cost that goes well beyond one driver and one ticket.

You May Also Like

Hot Definitions
  1. Venture-Capital-Backed IPO

    The selling to the public of shares in a company that has previously been funded primarily by private investors. The alternative ...
  2. Merger Arbitrage

    A hedge fund strategy in which the stocks of two merging companies are simultaneously bought and sold to create a riskless ...
  3. Market Failure

    An economic term that encompasses a situation where, in any given market, the quantity of a product demanded by consumers ...
  4. Unsystematic Risk

    Company or industry specific risk that is inherent in each investment. The amount of unsystematic risk can be reduced through ...
  5. Security Market Line - SML

    A line that graphs the systematic, or market, risk versus return of the whole market at a certain time and shows all risky ...
  6. Tangible Net Worth

    A measure of the physical worth of a company, which does not include any value derived from intangible assets such as copyrights, ...
Trading Center