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Study shows consumer packaged goods industry supports 20.4 million jobs and contributes $2 trillion to GDP.
August 8, 2019
By: JESSICA HERRING
The consumer packaged goods (CPG) industry, which includes foods, beverages, household, and personal care products that Americans use every day, has a massive impact on jobs. In 2017, the CPG industry totaled 2.3 million jobs, paying labor income of $151 billion and adding $361.3 billion to the U.S. GDP, according to a report from the Grocery Manufacturers Association (GMA). The average income for employees of the CPG industry is $64,000, which is $4,000 more than the national average. The industry also directly accounts for 18% of all U.S. manufacturing employment. “The CPG industry’s impact on the American economy cannot be understated,” said GMA President and CEO Geoff Freeman. “Most people don’t consider the jobs and livelihoods they are supporting when they purchase a new tube of toothpaste or stock up on their favorite snacks, but the products we all rely on each day have an enormous impact on our economy.” The CPG industry supports one in 10 American jobs and is the largest manufacturing employer in the U.S., according to a report, which was conducted by PricewaterhouseCoopers LLP (PwC). The study showed the CPG industry supports 20.4 million jobs that generate $1.1 trillion in labor income, and contribute $2 trillion to the nation’s GDP. Through its indirect, induced and downstream impacts, the industry supports more than 18 million additional jobs in the wider economy that generate $957 billion in labor income and contribute $1.6 trillion in GDP. The additional support is a result of economic activity in related industries, such as agriculture—that produces everything from tomatoes for ketchup to aloe for skin care—or retail to get CPG products into the hands of consumers who depend on them. The GMA study is a detailed, comprehensive look at the CPG industry, with economic data for every state and congressional district. The positive effects of the CPG industry are felt coast to coast. California may have topped the states for the most CPG jobs, but in Nebraska nearly a fifth (19%) of all employment is directly and indirectly supported by the CPG industry, the highest of any state. The CPG industry directly provides at least 500 jobs in every congressional district. In 174 districts, the industry directly provides more than 5,000 jobs. Along with this new research, GMA launched a new microsite to share the economic data of all 50 states, 435 congressional districts, and Washington, D.C.
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