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CPG vs FMCG: Similarities and Differences

Posted: Wed Feb 12, 2025 9:26 am
by ujjal22
What are CPG and FMCG?
These terms are often used interchangeably, and products sometimes fall into both categories.

However, there are some key differences, and we'll take a closer look below.

But at this point, the best way to think about CPG and FMCG is that while they are incredibly similar, FMCG is a kind of subset of CPG, and the goods that fall under it are consumed and sold faster than CPG.


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Types of CPGs
Here are some examples of different types of CPGs:

Beauty, toiletries and personal care: cosmetics, makeup, Botim Data skin care, hair care, deodorant, shower gel, toothpaste, soap, etc.
Children's and infant products: toys, diapers, baby food, formula milk, etc.
Food and drink: packaged foods (like potato chips), beverages, and other consumable goods
Household products : cleaning products and tools, small appliances, storage containers, cleaning supplies, etc.
Medications : over-the-counter pharmaceuticals such as painkillers, vitamins, dietary supplements, and so on.
Pet products: pet food, pet toys, snacks and so on for pets.

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Types of FMCG
Types of FMCG include:

Beauty and personal hygiene : toothpastes, shaving creams, razors, soap, body washes, and other items used daily by most consumers.
Cleaning products : goods that sell quickly and are used daily or frequently, such as dishwasher tablets, dishwashing detergents, laundry detergents and fabric softeners, and household cleaning products.
Beverages : which are purchased by many consumers and consumed more than once a day, such as tea, coffee, and soft drinks
Over-the-counter medications : painkillers, antacids, and other remedies for everyday ailments.
Confectionery: items purchased and consumed daily, such as chocolates, sweets, and chewing gum
Animal products : pet food
Paper goods : goods that are used quickly and regularly, such as paper towels, toilet paper, and napkins

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CPG vs FMCG: Key Differences
CPG products tend to be used occasionally and are sometimes durable goods; for example, a bottle of shampoo will not need to be used or replaced daily.

In contrast, FMCG products are often part of everyday life, so they sell faster and in larger volumes. An example sometimes cited is milk vs. cat litter. The former is easier to sell in larger volumes than the latter.

Another difference is that CPG companies tend to invest money in brand development and strive for long-term customer loyalty. In contrast, FMCG companies are more focused on quick sales from a larger market. For example, in brick-and-mortar stores, FMCG products are often placed in areas with high consumer presence to attract impulse buyers. For example, near checkouts and at the end of aisles.

In short, CPG and FMCG brands take slightly different approaches to marketing to their target demographics (see below).