CPG (Consumer Packaged Goods)
CPG refers to products that are sold quickly, consumed rapidly, and replaced frequently, typically items in packaging like food, beverages, cosmetics, household cleaners, and personal care products. These are goods bought at retail that consumers use up or replace regularly, usually within weeks or months.
Why it matters
If you're making products like candles, skincare, snacks, or cleaning supplies, understanding CPG dynamics affects how you price, package, and distribute your work. Most small makers who sell physical products are actually operating in the CPG space, even if they don't use the term.
What CPG (Consumer Packaged Goods) is not
CPG is not a business model or strategy; it's a product category. Being a CPG doesn't mean you have to be a massive corporation; small artisan producers make CPG products too.
Where this shows up
- Retail shelf space and store negotiations
- Packaging design and labeling requirements
- Wholesale distribution conversations
- Supply chain and inventory planning
Related terms
- SKU (Stock Keeping Unit) individual product variant you track in inventory, critical for CPG producers managing multiple sizes or flavors
- Turn Rate how quickly your CPG product sells through retail; faster turns are generally better for small makers
- Shelf-stable whether a CPG product can sit on a shelf without refrigeration, affecting distribution options
- Food and Drug Administration (FDA) regulatory body that sets labeling and safety standards for CPG products like food and cosmetics