INDUSTRY
CONSUMER PACKAGED GOODS
Companies that produce and sell Consumer Packaged Goods (CPGs) are mostly high-volume businesses with relatively high margins. Nevertheless, the CPGs sector is prone to immediate exposure to economic volatility, including consumer shifts associated with the recent high inflation, supply chain disruptions, shortages of skilled labor, and soaring production costs.
Industry factsheet
The CPG industry includes the production and marketing of goods that are consumed quickly and need to be replaced frequently, such as food, beverages, cosmetics, and cleaning products.
EUROPE TURNOVER
MAIN CURRENCY
DOMESTIC TRADE
FOREIGN TRADE
SUPPLY CHAIN TEARING
€ 1.2 T
€
50%
50%
3+
EUROPE TURNOVER
€ 1.2 T
MAIN CURRENCY
€
DOMESTIC TRADE
50%
FOREIGN TRADE
50%
SUPPLY CHAIN TEARING
3+
Notable companies
Creditworthiness
Generally high for the established players like Nestlé and Unilever (AA or above), with variability among smaller or niche companies based on market presence and financial stability.
Geographic distribution, %
No Data Found
DSO
No Data Found
Working capital challenges
In 2023, CPGs’ Cash Conversion Cycle has increased by 16 days as compared to 2021 (Efficio Consulting). To overcome cash flow challenges, CFOs should consider freeing up capital for operational changes, mitigating credit risk, and increasing collection efforts.
- High competition and thin margins
- Managing perishable goods
- Demand forecasting accuracy
- Inventory management
- Promotional activities and discounts
Invoice sizes
€500,000
Maximum
€20,000
Average
€ 500
Minimum
Turnover size distribution
CPGs companies, Europe, %
No Data Found
Economic outlook
The global Consumer Packaged Goods (CPG) is forecasted to grow at a CAGR of 4.1% between 2023 and 2032. The CPG growth will be supported by increasing consumer spending, e-commerce expansion, and demand for health and wellness products. Innovation in sustainable packaging and products will be crucial.
Top invoicing currencies
- US Dollar
- EURO
- British Pound
Our working capital solutions for CPGs industry
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