when investing in companies in the consumer packaged goods sector it is best to evaluate key points of the company s financial data for information about accounts receivable and inventory turnover 
consumer packaged goods generally have short lifespans and are intended to be used quickly the name originates in their packaging which traditionally is easily recognizable wrapping that consumers can quickly identify on store shelves for example cosmetics typically have limited shelf lives as these products quickly deteriorate if exposed to extreme temperature fluctuations they are sold in individual packages at varying price points depending on the brand s position in the market after using the products consumers either discard or recycle the empty vessels frozen dinners are another popular example of consumer packaged goods these high volume perishable items are sold at retailers worldwide and are often purchased for immediate use by consumers consumers then replenish their frozen meals each time they visit the grocery store often choosing the brands they already recognize and enjoy consumer packaged goods vs durable goodsconsumer packaged goods are cheaply sold and replaced often by contrast durable goods are intended to last for several years and enjoyed for extended use consequently the purchase of a durable good typically involves considerable thought and substantial comparison shopping given the higher price tags attached to these investments computers and automobiles are examples of durable goods economic slumps often trigger flagging durable goods sales because people are more likely to hold onto their cash in times of economic uncertainty this is especially true with consumers who own older versions of a durable good a family may opt to squeeze a few more years from an outmoded washing machine rather than upgrade to a newer model by contrast sales of consumer packaged goods staples like bread milk and toothpaste are less affected by market fluctuations consumers consume or run out of these goods faster and must replace them or do without entirely during tough economic times consumers may spend extra on consumer packaged goods in place of more expensive luxuries during the economic downturn from the 2008 recession sales of nail polish went up as consumers splurged on at home nail treatments instead of pricey salon manicures in 2009 though consumer spending on cosmetics overall declined nail polish sales grew by 14 3 2