CPG stands for Consumer Packaged Goods. CPGs are items that customers use regularly and require frequent purchases to replace or replenish them. Examples of CPGs include food, beverages, toiletries, cosmetics, cleaning products, and household goods. CPGs are different from durable goods, which are not consumed or destroyed in use and are generally not replaced until the merchandise experiences a problem.

CPGs are sold quickly and at a relatively low cost. They are characterized by frequent purchases, low engagement, low prices, short shelf life, and rapid consumption from the consumer perspective. From the marketer perspective, CPGs are characterized by high volumes, low contribution margins, extensive distribution, and high inventory turnover.

CPG companies are well-known and include Nestlé, Procter & Gamble, PepsiCo, Coca-Cola, and LOréal. CPG marketing is important because consumers have near-unlimited choice and zero switching costs. CPG marketing involves activities and campaigns used to generate awareness, brand affinity, and loyalty for a company’s consumer packaged goods. CPG marketing can involve online or offline marketing tactics in standalone campaigns, as well as “always on” programs.

CPG marketers face a number of challenges they need to overcome, such as high market saturation and low consumer switching costs. CPG marketing analytics involves the curation, ingestion, and analysis of data sets related to consumer packaged goods.