What are consumer packaged goods (CPG) and how to protect against counterfeiting

Introduction: What is CPG packaging?

CPG packaging covers packaging solutions for consumer goods. CPGs (consumer packaged goods) are products that are used frequently by customers. They require regular replenishment or replacement. As technology advances, brands and manufacturers have access to an innovative range of packaging options and tools and capabilities designed to protect products and reduce the risk of counterfeiting. In this guide, we’ll discuss CPG meaning and talk about how companies can modernize their approach to prevent fraud and tampering.

What does CPG company stand for?

CPG stands for consumer packaged goods. A CPG company specializes in creating and selling products to customers either directly or through retailers and marketplaces. Consumer packaged goods are products that are consumed frequently.

What products are considered CPG?

Consumers purchase and use CPG products regularly. In many cases, these products have a relatively short shelf-life and they must be replaced or replenished frequently. There are several common examples of CPGs, including:

• Beauty products
• Fresh and frozen food
• Beverages
• Clothing
• Makeup and cosmetics
• Household cleaning products

Examples of well-known CPG brands include L’Oreal, Coca-Cola, Nestle and Procter & Gamble.

What is CPG vs FMCG?

CPG companies may produce CPGs and FMCGs. FMCGs are types of CPG, but they tend to sell faster. FMCG stands for fast-moving consumer goods. Examples of FMCGs include:

• Toiletries, including soap, toilet paper, shower gel and shampoo
• Beverages, including coffee and juice
• Processed and ready-made foods
• Wellness products, including vitamins and supplements

What is CPG technology?

The CPG industry is evolving all the time thanks to new technologies and innovative solutions, which increase efficiency, prevent counterfeiting and fraud, facilitate effective supply chain management and improve customer engagement and experience. CPG companies utilize a raft of tools, applications, systems and technologies to create high-quality goods, lower the risk of counterfeiting and enhance customer experience. Examples include automation and machine learning, digital passports and inventory tracking, anti-tamper seals, data analytics and smart packaging solutions.

What is the difference between CPG and durable goods?

Consumer packaged goods are different from durable goods. They are designed to be consumed or used within a short space of time, and they have distinctive packaging, which makes them easily identifiable. Durable goods are intended to last much longer than CPGs. They are usually more expensive, and they are often designed for frequent or repeated use. Examples of CPGs include beauty industry products and makeup, perishable foods and frozen ready-meals. Examples of durable goods include cars, household appliances, jewelry and furniture.

What are the most important trends in the CPG industry today?

Key trends for the CPG industry today include:

• Catering to conscious consumers

Consumers today want to know more about brands and the products they sell. People are more inclined to look for brands that support good causes and champion sustainability. Over 70% of consumers seek to buy from brands that align with their values (source). With a business model that relies on brand transparency and history and such elements, brand loyalties is built.

• Consumer trust and security

As online shopping has become more popular, customers are eager to choose brands they trust with their personal data. CPG companies and retailers can take additional steps to protect consumers, as well as their brand reputation and product authenticity. By being able to verify that a purchased product has not been previously opened and is authentic.

• Using data to create personalized experiences

Brands have access to huge amounts of data today. CPG companies can use data and client feedback to create personalized experiences, improve review scores and ratings and increase sales.

• Fast, easy, safe delivery options

Online sales have boomed since the start of the pandemic. Consumers are now used to fast, easy, safe and convenient delivery options. Also, they expect transparency in delivery from manufacturing to delivery to the consumer.

Demand for transparency in CPG products

Transparency is increasingly important within the CPG industry. Consumers want to know what they’re buying and who they are buying from. CPG companies can promote transparency in multiple ways. Firstly, they can use cutting-edge technology to provide information about product origins and contents. Secondly, they can communicate openly with customers and clients. Thirdly, they can be transparent about their brand cultures, values and backstory. In addition, companies can be open and honest about how they collect and use data. Data from the Consumer Goods Forum suggests that 70% of customers want transparency when looking for products (source).

The tamper-evident tape of CPG packaging

Tamper-evident tape is often used for consumer goods to highlight when products have been tampered or interfered with. Using this kind of tape protects consumers and helps to lower the risk of financial losses for CPG companies.

Why do we have tamper-evident seals?

Tamper-evident seals are mechanisms, which are used to prevent tampering with consumer products. Seals are applied to packaging, such as cartons or pouches. If the product has been tampered with or disturbed, this will be clear to see, as the seal will be broken, damaged or missing. Using tamper-evident seals for products helps to protect consumers from eating, drinking or using products that could be dangerous or unsafe due to tampering. For manufacturers, tamper-evident seals are an effective way to keep products in pristine condition until they reach the consumer.

What is tamper-evident tape used for?

Tamper-evident tape is used to prevent unauthorized access to products and show evidence of tampering if somebody has tried to get into a package or break a seal. Tamper-evident tape is used most commonly on packaging for products including pharmaceuticals, toys, toiletries and valuable items.

What will cause the tamper-evident tape to be removed?

If packaging has been tampered with, tamper-evident tape will show signs of disturbance or it may be missing altogether.

How do you monitor CPG packaging to the point of destination?

Using new technologies provides opportunities to monitor CPG packaging to the point of destination. Examples, such as product track and trace, end-to-end authenticity solutions, digital passports and tamper-proof blockchain solutions can help to protect manufacturers, distributors and consumers.

How is the authenticity of CPG packaging verified?

Digital transformation in CPG has enhanced verification capabilities and reduced the risk of tampering and counterfeiting. Solutions like NFC-encrypted blockchain systems like Authena Shield enable seamless tracking and verification. Thanks to this end-to-end solution, brands can follow their products along the supply chain until the end customers, who, in turn, can verify CPGs information, authenticity and integrity with a quick and simple smartphone interaction.

Conclusion

Consumer packaged goods (CPGs) are products that are sold frequently. They are replaced and replenished regularly. CPG companies can utilize modern technology to reduce the risk of counterfeiting, protect consumers, and easily communicate their sustainability efforts.