Definitive Guide to Consumer Packaged Goods CPG Industry: Key Segments, Trends & Leading Brands

They expect a top quality experience whether they’re browsing online, shopping in-store, or engaging on social media. A true omnichannel strategy connects these touchpoints so that messaging, pricing, and service feel consistent across every interaction. Half of global consumers are increasingly purchasing private label products, indicating a shift in brand loyalty and value perception. Even as the impact of the COVID-19 pandemic wanes, consumers continue to prioritize health-conscious choices. Simultaneously, there has been an increase in sales for brands actively championing sustainability. The Consumer Packaged Goods (CPG) industry is a major powerhouse in the US economy, making a significant impact on both employment and economic growth.

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Global consumer spending on CPG products is projected to increase by nearly 6% in 2025, adding approximately $3.2 trillion in spending compared to 2024. While FMCG is technically a subset of CPG, the two terms are often used interchangeably. The key idea is FMCGs are products with high turnover and frequent repeat purchases, whether they’re perishable or not.

Sustainability Initiatives in the CPG Industry

• He holds a master’s degree in financial economics from the University of Oxford.
• Requiring minimal consideration in the purchasing process, retailers ensure an ample supply on their shelves.
• By leveraging platforms like Facebook, Instagram, and TikTok, CPG brands can engage with consumers in real-time, share content, and run targeted ad campaigns.
• The proliferation of pet services reflects the humanization of pets as beloved family members.
• Expertise Accelerated offers high-quality, affordable offshore professionals resources that provide excellence in accounting, finance and supply chain management to its valued clients.

Much of the growth in the pet food market is on account of premium dog food brands. The two largest segments of the CPG market are food and beverages (30% market share) and personal care/cosmetics (20% market share). When we did the Airbnb IPO, we didn’t include non-variable (brand) marketing expenses in ‘CAC.’So, excluding them is a very ‘sell-side’ way to look at it, but it gives you a better idea of true CAC. Balancing revenue streams, managing expenses, and satisfying both investors and tax authorities can be daunting. key accounting considerations for consumer packaged goods cpg companies cfox A chart of accounts is a categorization of your company’s general ledger.

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No reader should act, or refrain from acting, based on this information without seeking professional legal counsel tailored to their specific circumstances. Good accounting aids CPGs to check stock, set prices, handle cash, and follow rules. Are you making one of the top 5 mistakes that plague wholesaledistributors? We’ve also included tips and guidance to help you save time and avoid costly mistakes. These trends are reshaping the CPG industry and companies that can effectively navigate and leverage them are likely to thrive. As an employee you have countless opportunities to become part of our global #TeamRWE.

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• Our extensive network of peers, specialists, and potential suppliers help each other succeed.
• Because people like you buy these goods all the time, companies have to manufacture and restock them continuously.
• In fact, more than one-quarter of the companies in our database were accretive growers that achieved organic growth and margin expansion at the same time (Exhibit 2).
• A cash receipts and disbursements forecast is a simple way to review what is coming in and going out of the bank, as well as preparing a short-term forecast of the expected activity.
• CPG brands boost marketing and innovation to build loyalty, not rely on short-term promos.
• A handful of expenses fit between gross revenue and net revenue on the income statement.

These agencies often have expertise in areas such as brand development, advertising, public relations, and digital marketing. Beyond e-commerce and online sales, digital solutions also provide significant operational advantages. They enable end-to-end visibility of core product information, accelerate product time to market, and promote digital transformation, among other benefits. These innovations are reshaping the landscape of the CPG industry, and companies that can harness these digital solutions will be at the forefront of the industry. Social media and influencer marketing are becoming increasingly important.

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Nomad Foods focuses on frozen foods, where it has strong products and expertise. For example, Church & Dwight cut to 7 key brands to boost growth and profits. In international markets, local brands also known as “local jewels” are as important. For instance, Kellanova is growing in Africa by combining Pringles with local snacks through regional partners. Focusing on strong brands helps drop weak ones, boost profits, and fund growth.

The key distinction lies in the emphasis on the ‘fast-moving’ aspect of FMCG. QR Codes are on the rise in the CPG industry, gaining momentum year after year. This trend creates a valuable opportunity for CPG brands to leverage QR Codes, offering innovative experiences to engage with their customers. DTC brands have become more popular among tech-savvy generations like Gen Z and millennials. What makes them particularly appealing is that consumers enjoy a more personalized experience, tailored to their specific needs and preferences. Product examples in this industry include vitamins, supplements, and OTC medications.

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But in recent years, smaller direct-to-consumer CPG brands have been gaining momentum. If you change your mind at any time about wishing to receive the information from us, you can send us an email message using the Contact Us page. Greater enterprise agility is key to acting more quickly on demand signals, while also providing a faster path to value across capability investments. Enterprise agility helps to realize value over a series of shorter sprints rather than over multi-year horizons, as is typically the case for larger technology investments. Generally, revenue is recognized when goods are sold, but CPG companies often offer discounts, promotions, and other incentives to encourage sales, which can make revenue recognition more complex.

Personal Care Products

Consumer Packaged Goods (CPG) companies have unique accounting considerations due to the nature of their business. Expertise Accelerated offers high-quality, affordable offshore professionals resources that provide excellence in accounting, finance and supply chain management to its valued clients. The balance sheet lists what the company owns and owes usually, inventory is the biggest asset. The cash flow statement tracks money in and out to help avoid cash shortages. CPG companies now focus on strong, flexible supply chains over low costs. JBS Foods localized operations to reduce risk, while PepsiCo uses AI to improve orders and delivery.

Digital solutions are significantly contributing to the transformation of the CPG industry. E-commerce, for instance, is enabling companies to have direct oversight of distribution and shipping, leading to improved punctuality and reduced instances of out-of-stock products. These platforms also provide a unique opportunity for CPG brands to engage directly with their customers and understand their needs better.

Sales of packaged goods like bread, milk, and toothpaste are less affected by market fluctuations. Consumers may switch to cheaper brands or use their purchases more frugally but they can’t do without them entirely. Durable goods are more vulnerable to economic downswings than packaged goods. Consumers are more likely to delay major purchases in times of economic uncertainty.