No two types of freight are shipped the same way. Each type of cargo requires different shipping practices, timelines, and carrier specialties. Among many different cargo types, consumer packaged goods require much more attention and special allowances than others.
Today, let’s break down how consumer packaged goods shipping works and current trends affecting the freight industry and your supply chains.
What Does Consumer Packaging Mean?
Consumer packaging means any household or perishable goods — such as foods, cosmetics, and tools — with packaging designed to appeal to and inspire direct-to-consumer purchases.
Makeup products are examples of consumer packaged goods, or CPGs. Makeup products and merchandise are packaged with plastic or boxes with art, including information about those products. The packaging is designed to entice a potential consumer to purchase that makeup.
Most consumer packaged goods are used daily or shortly after purchasing. They also frequently require replenishment or replacement.
Some common examples of consumer packaged goods include:
- Food
- Beverages
- Tobacco and alcohol
- Makeup and beauty products
- Clothes
- Household products
- Consumer electronics
Once you know what CPG companies and brands are, you can optimize your supply chain for greater sustainability, eCommerce profitability, shelf life in your store, and other aspects.
How Are Consumer Packaging Goods Different From Durable Goods?
Consumer packaged goods are very different from durable goods.
While CPGs have short lifespans and are meant to be used or consumed quickly before being replaced, durable goods are the opposite. Durable goods, such as automobiles, are intended to be enjoyed or used for several years before replacement.
Because of this crucial difference, people purchase durable goods usually only after intense consideration and comparison. This requires marketers and shippers to adopt different approaches to producing and shipping these goods.
Aside from automobiles, other examples of durable goods include appliances and furniture.
How Are Consumer Packaging Goods Different From Fast-Moving Consumer Goods?
Fast-moving consumer goods, or FMCGs, are relatively cheap, fast-moving, fast-selling goods. (Note that FMCGs are included among consumer packaged goods in most classifications.)
FMCGs usually have a concise shelf life due to high consumer demand or if they are perishable. These include but are not limited to baked goods, meat and dairy products, soft drinks, and confections.
FMCGs are usually low-cost and sold in high volume. They are also purchased very frequently and consumed shortly after purchasing. Thus, they need to be shipped to their destinations shortly after being produced, so they do not expire.
How Are Consumer Packaging Goods Different From Retail Goods?
Consumer packaged goods are entirely different from retail as a concept. Retail just means selling products to the end users or customers.
For example, Best Buy is a well-known electronics retail store. They receive electronics from shipping carriers, then sell those products to customers for a profit.
Digital transformation has altered the retail industry in the internet age. Many retailers, including Best Buy, have business models that split CPG sales between brick-and-mortar stores and eCommerce sites to enhance customer experiences. While eCommerce was once a disruption, it is now a central part of the retail ecosystem.</>
Retail organizations or vendors may sell consumer packaged goods in-store very frequently. Other retail operations include grocery stores, furniture stores, household goods, and makeup stores.
What Are the Four Types of CPGs?
Consumer packaged goods are broadly available in four different types. Depending on the kind of CPGs you need to ship, you may need to choose other carriers or have a different shipment schedule.
Convenience Goods
Convenience goods are any goods that are bought very frequently and quickly. They do not usually require a lot of emotional investment or research on the part of the consumer. Essentially, consumers see convenience goods and buy them without overthinking.
Some of the most common convenience goods include household staples, such as regular food items like cereals, meat, dairy products, and fruits. They also have so-called “impulse goods.” These are things like candy or soft drinks and tobacco and alcohol products. Impulse goods are usually positioned close to the front of retail stores.
However, convenience goods also encompass emergency goods, like first-aid kits and hygiene items. Toothpaste, feminine hygiene products, and bandages are examples of emergency convenience goods.
As their name suggests, many convenience goods are available at retail stores and convenience stores like gas stations or neighborhood markets.
Specialty Goods
Specialty goods are products with unique characteristics, brand elements or features, or other aspects that make them “special” purchases for their consumers. Specialty goods as a consumer goods class encompass many different categories. They are usually identified based on consumer behavior or shipping needs.
For example, luxury cars are easy examples of specialty goods. They are only bought by those who put a lot of thought into the purchase and require special shipping to ensure they arrive at their final destinations intact and in pristine condition.
Specialty goods often require unique shipping practices or policies to ensure they are received correctly and in the right conditions for their end-users or consumers.
Shopping Goods
Shopping goods are consumer packaged goods that are usually purchased only after intense research or comparison on the part of the consumer.
For example, high-quality clothing may be considered a shopping good because that kind of clothing is usually only purchased after the buyer compares the clothing against other brands, tries on the dress to make sure it fits, and invests a fair amount of consideration.
Consumers typically shop or browse for a while before settling on particular shopping goods. Shopping goods can frequently be shipped with many other consumer packaged goods but may require special considerations or packaging processes.
Unsought Goods
Unsought goods are CPGs consumers don't know about or don't usually think about purchasing. However, they may still purchase unsought goods after being made aware of them through the efforts of a salesperson or retail store staff member.
For example, someone buying a new car may not immediately think about special footpads or cleaning products. But they may still purchase those unsought goods after being told it would be wise.
What Are the Current CPG Industry Trends?
Currently, the CPG industry is in slow growth compared to other sectors. That said, consumer packaged goods still represent one of North America's largest goods sectors. It is valued at nearly $2 trillion, largely due to the profits of huge, international, and well-established CPG brands such as L’Oréal, Coca-Cola, and Procter & Gamble.
Furthermore, environmentally friendly or "green" products are becoming increasingly popular and in demand. As a result, consumer packaged goods that emphasize eco-friendliness or minimize environmental impact are likely to sell more — and be shipped around the country more — than their counterparts.
True to this trend, many consumers are increasingly willing to pay higher prices for sustainably made, planet-friendly products. On top of that, many shoppers now find products and do product research via digital channels, such as online advertisements or social media marketing.
For example, someone might notice a product online, then do some social media or Google research to determine whether it is worth their time to give that product a try. In this way, digital marketing heavily impacts consumers’ shopping journeys, affecting retail store marketing, shipping trends, and, ultimately, the customer packaged goods industry.
How Does CPG Shipping Work?
Because CPG goods are usually not very large, they are frequently transported in crates and bulk. Furthermore, because most consumer packaged goods are meant to be bought and consumed in large quantities, they are usually shipped together in massive loads.
Some CPG shipping requires special considerations or practices, particularly for specialty goods. Therefore, some shippers may require their carriers to transport high-quality consumer packaged goods in smaller loads or with special care and attention to load fragility/condition upon receipt.
Solid logistics and carrier tracking technology bolster the best consumer packaged goods shipping. RPM helps companies like yours ship consumer packaged goods efficiently with our diverse and experienced carrier network.
What’s the Bottom Line?
All in all, consumer packaged goods shipping will not slow down or stop entirely. But this dynamic industry is constantly changing, so it’s a good idea to partner with a trusted transportation service that can help you get your consumer packaged goods to the right places and the right people on time.
RPM is that company. As an experienced and trusted end-to-end transportation provider, RPM is well-equipped and ready to help with your CPG shipping needs. Contact us today to learn more about our diverse carrier network, logistics services, and other significant benefits.
Sources:
Consumer Packaged Goods (CPG) | Investopedia
Consumer Durables | Investopedia
CPG industry contributes $2 trillion to U.S. GDP | IFT.org
