Consumer Brands Association Releases New Study: CPG Industry Drives Over $354 Billion Economic Impact in California

ARLINGTON, Va. - A new study released today by the Consumer Brands Association reveals the unparalleled economic impact of the consumer packaged goods (CPG) industry in California. Conducted by PwC, the research highlights the CPG sector as California's largest manufacturing employer. The industry supports a staggering 2.6 million jobs in the state, which is the equivalent of filling the Rose Bowl to capacity 28 times and contributes $354.4 billion to the state's economy, which is enough money to fund the making of 5,000 Hollywood movies.

"As the backbone of the world's fifth-largest economy, the CPG industry's impact on California is nothing short of transformative," said John Hewitt, senior vice president of state affairs at Consumer Brands. "Our industry not only provides the food, beverage, household and personal care products that Californians rely on daily but also serves as a cornerstone of economic stability and growth across the state."

The comprehensive study, analyzing employment, labor and economic data from 2022, uncovers the far-reaching influence of the CPG industry in the Golden State:

• Employment Powerhouse: Directly and indirectly supports over 2.6 million jobs, accounting for 10.4% of California's total employment.
• Income Generator: Contributes $198.3 billion in labor income, fueling local economies and supporting families statewide.
• Economic Catalyst: Generates $354.4 billion in GDP, nearly 10% of California's total economic output.

The CPG industry's footprint in California is as diverse as the state itself, spanning from the agricultural heartland of the Central Valley to the bustling ports of Los Angeles and Long Beach and the innovation hubs of Silicon Valley. This sector encompasses:

• Agricultural Partnerships: CPG companies work closely with California's farmers, sourcing everything from almonds and avocados to tomatoes and citrus fruits, supporting the state's $50 billion agricultural industry.

• Innovation Epicenters: The industry has established numerous R&D facilities across the state, driving advancements in sustainable packaging, plant-based products and smart consumer technologies.

• Logistics Powerhouse: With two of the nation's busiest ports, the CPG industry significantly contributes to California's robust transportation and warehousing sectors, ensuring products reach consumers efficiently.

• Retail Ecosystem: From small, local grocers to major chains, the CPG industry supports a vast network of retailers, contributing to community vitality across urban and rural areas alike.

"The CPG industry's influence extends far beyond manufacturing," Hewitt emphasized. "It's a vital link in a vast economic chain, encompassing California's $59 billion agriculture sector, transportation, warehousing and retail. The findings in this report also reinforce the need for state and federal policies that facilitate job creation, spur innovation and build consumer trust."

Read the full report HERE.

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ABOUT THE CONSUMER BRANDS ASSOCIATION

The Consumer Brands Association champions the industry that makes the products you choose and the brands you trust. From household and personal care to food and beverage products, the consumer packaged goods industry plays a vital role in powering the U.S. economy, contributing $2.5 trillion to U.S. GDP and supporting 22.3 million American jobs.

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