What’s the Difference Between CPG and FMCG? A Complete Guide


CPG and FMCG are commonly used terms in the retail industry. Both refer to goods that are used daily and require replenishment and routine replacement. CPG means “Consumer Packaged Goods,” while FMCG means “Fast Moving Consumer Goods.” Understanding the differences between the two can help you navigate the retail industry better.



CPG – A Brief Overview


Consumer packaged goods include household products, beauty products, clothing, and other daily-use goods. They generally have a short lifespan and are used soon after the purchase. Every CPG company deals with limited shelf space and a highly competitive market. But since the demand is high, success can result in increased market share and quickly generate revenue.   

FMCG – A Brief Overview


Fast Consumer Goods include products that are sold quickly and at a lower cost. These products are considered moving as retailers regularly restock the shelves because of the high turnover rate. This happens for two reasons – high demand and perishable products.  


The Primary Distinctions


The main difference between them is how quickly a product can be sold over another. For instance, the sales velocity of shampoo and milk varies because people consume more milk than shampoo every day.


Another difference lies in their consumption in different parts of the country. For instance, in North America, industry professionals generally utilize CPG, whereas FMCG is preferred more internationally.  


Using Retail Data for CPG and FMCG


CPG manufacturing businesses can use retail analytics to optimize their CPG and FMCG product sales. The risk of falling behind increases if you don’t know what products are likely to sell faster and in what markets. However, knowing that one of your products sells faster can help you invest strategically to gain more distribution and boost sales velocity. 


Consumer at a grocery store

Based on your product line, CPG companies must know how to adapt to retailer sales capabilities and consumer needs.


If you own a business related to natural specialty products, you may be looking for ways to expand your capabilities among consumers. To improve your sales, reach out to Natural Consumer Packaged Goods consultants at emerge.


By partnering with the right CPG & Natural Products Sales outsourcing agency, you can easily streamline success for your CPG company. We’re recognized as one of the most reputable Natural foods sales consulting companies with years of experience working with a wide range of natural consumer packaged food brands.


Schedule a consultation with our team to learn more about our CPG Business Sales Management Services to achieve optimal sales outcomes.


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