CPG industry contributes $2 trillion to U.S. GDP

August 7, 2019

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 new report released by the Grocery Manufacturers Association (GMA). The GMA study provides a detailed, comprehensive look at the U.S. CPG industry, with economic data for every state and congressional district.

The findings from the study, conducted by PricewaterhouseCoopers LLP, show 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 gross domestic product (GDP).

“The CPG industry’s impact on the American economy cannot be understated,” said Geoff Freeman, GMA president and CEO. “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.

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 or retail.

The report shows that while California may have topped the states for the most CPG jobs, nearly a fifth (19%) of all employment in Nebraska 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.

Report (pdf)