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CPG Industry Supports 20 Million US Jobs, Contributes $2 Trillion To GDP

GMA CPG study

The consumer packaged goods (CPG) industry supports one in 10 American jobs and is the largest manufacturing employer in the United States, according to a report released Aug. 6 by the Grocery Manufacturers Association (GMA). The study, conducted by PricewaterhouseCoopers LLP, shows that 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.

“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 encompasses the food, beverage, household and personal care products that Americans depend on every day. The industry’s direct impact alone is massive, totaling 2.3 million jobs in 2017, paying labor income of $151 billion and adding $361.3 billion to the nation’s GDP. The average income for employees of the CPG industry is $4,000 more than the national income average. The industry also directly accounts for 18 percent of all U.S. manufacturing employment. 

Through its indirect, induced and downstream impacts, the industry supports more than 18 million additional jobs in the wider economy that generates $957 billion in labor income and contributes $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 skincare—or retail to get CPG products into the hands of consumers who depend on them. 

The GMA study is the most 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, 19 percent of all employment is directly and indirectly supported by the CPG industry, the highest of any state. In 174 congressional 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.

For more information about the study, click here.

GMA is the trade organization representing the world’s leading food, beverage and consumer products companies and associated partners.

PricewaterhouseCoopers LLP relied on the IMPLAN model to calculate the economic contributions of the U.S. CPG industry. IMPLAN is a modeling system developed for estimating economic impacts and is similar to the Regional Input-Output Modeling System developed by the U.S. Department of Commerce. The model is primarily based on government data sources.

About the author

Treva Bennett

Senior Content Creator

After 32 years in the newspaper industry, she is enjoying her new career exploring the world of groceries at The Shelby Report.

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