Consumer packaged goods
The consumer packaged goods (CPG) industry is one of the largest and most successful industries in North America. During the last several decades, this industry experienced remarkable growth in both revenue and shareholder returns, fueled by the expansion of emerging-market economies and the subsequent increase in global consumption. The last few years, however, saw a decline in people’s disposable incomes, as well as a general change in consumer attitudes. Nevertheless, CPG sales in the United States constantly grew over the past five years. Sales figures were estimated to exceed 760 billion U.S. dollars by 2016. Consumer packaged goods include commodities such as food and drinks, clothing and footwear, tobacco and cleaning products. CPGs are consumable items which need frequent replacing, unlike automobiles or furniture.
In 2014, U.S. consumers spent approximately 398 billion U.S. dollars on consumer packaged goods, with Baby Boomers and Senior citizens accounting for more than half of the country’s CPG expenditure. Grocery stores were the most popular CPG distribution channel, followed by drugstores and mass merchandisers and/or supermarkets. That year, 99 percent of U.S. households had bought consumer packaged goods from grocery stores.
CPG companies employ different marketing strategies to boost revenues. For instance, some 23 billion CPG coupons were redeemed in the United States from 2007 to 2014. As a result, American consumers were able to save some three billion U.S. dollars on consumer packaged goods annually.