There are many differences between CPG and FMCG, the two categories of consumer packaged goods (CPG) and fast moving consumer goods (FMCG). The differences are so significant that they can be used as the basis for a marketing strategy.
The difference between a CPG and FMCG is quite significant. The products that fall under the category of CPG are products that are designed to be consumed and used by consumers on a daily basis. This could be anything from household items like shampoo, toothpaste, and deodorant, to food, such as salad dressing, to drinks, such as soda, beer, and coffee. On the other hand, the products that fall under the category of FMCG are products that are designed to be consumed and used on a short-term basis, such as those that are used for one-time events, such as a wedding or birthday party, or even for special occasions, such as a holiday.
CPG vs. FMCG: A Closer Look
CPG stands for Consumer Products Goods and FMCG stands for Fast Moving Consumer Goods. They are both similar but there are some differences between the two. Let’s have a closer look at the difference between the two.
- What Is the Difference Between the Two?
Both are the products that are manufactured in large quantities, but CPG products are usually available in larger quantities compared to FMCG.
- What Are the Functions of CPG and FMCG?
As mentioned earlier, both of these are the products that are manufactured in large quantities, but there are some functions and roles played by CPG and FMCG. Let’s have a closer look at the functions.
The functions of FMCG products are very common among us, the most common function of FMCG products is that they are used for daily needs and consumption. They are mainly used for personal hygiene, toiletry, cleaning and laundry.
CPG products are also known as household products. They are mainly used for the purpose of maintaining cleanliness and hygiene. They are used for cooking, cleaning, and decorating.
CPG Vs FMCG – Which One Should You Choose?
It is essential to understand the difference between CPG and FMCG to know which one is better for your business. Both the companies provide similar products but the key difference is that the FMCG product is more affordable.
FMCG stands for Food, Manufacturing, Chemical and Gas. The products offered by the FMCG companies are those that are used for cooking and baking. The main purpose of this type of products is to cook food in large quantities and sell them for a lower price.
The companies that offer CPG products are Pharmaceutical, Cosmetics, Personal Care, etc. These types of products are generally sold for a higher price and also have a longer shelf life.
Here are the common examples of CPG and FMCG companies:
- Clothes: CPG companies will sell clothes in a high price and the company also offers different sizes. You won’t find any size in the FMCG brands.
- Toothpastes: Toothpastes are generally sold in the FMCG companies and they don’t have different flavors.
- Makeup: Most of the makeup companies will sell their products in a higher price and offer different kinds of colors.
- Bread: You will find a wide variety of breads in the FMCG companies, as the bread is not that expensive.
- Milk: The milk that is provided by the FMCG companies is usually made of powdered milk.
- Bottled water: The water that is sold by the FMCG companies is free of chlorine and bacteria.
- Hair Oil: You will find the hair oils in the FMCG companies and they are available at a cheaper rate.
Benefits of CPG and FMCG Products:
Benefits of CPG Products:
– These products are generally available at a lower price
– They offer various types of flavors
– You can buy them in a larger quantity
– They offer a longer shelf life
– They are more durable and sturdy
Benefits of FMCG Products:
– The FMCG products are available in a smaller quantity
– They don’t provide any additional flavor
– They are available in different sizes
– They are cheaper
– They offer a long shelf life
Decide if your product is a CPG or FMCG
If you have been working for a few years and have an idea to start your own business, you might be wondering whether to start with a CPG or a FMCG. There are so many reasons to choose a CPG over a FMCG.
Here are the major differences between the two:
The cost to produce a CPG is much less than the FMCG. The reason for this is because the CPG needs just a single raw material and the production process is a bit more complex.
The sales of a CPG are higher than a FMCG as the people are used to buying CPGs. People buy products that are available in the market, not the products that are not available.
In case of a FMCG, you have to make a huge investment in marketing and branding. The risk is high and it might not be easy to turn a profit.
In case of a CPG, it is not possible to sue the company that produces the product. In case of a FMCG, if there is a problem in the product, then the manufacturer can be sued.
The above mentioned points will help you to understand the major differences between the two.
It is important to understand that there are many differences between the two categories of consumer packaged goods (CPG) and fast moving consumer goods (FMCG). It is also important to know that you can use these differences to your advantage. To do this, you need to understand the differences between the two categories of consumer packaged goods (CPG) and fast moving consumer goods (FMCG). There are many differences between the two categories of consumer packaged goods (CPG) and fast moving consumer goods (FMCG). The differences are so significant that they can be used as the basis for a marketing strategy.