If you want a category that compounds, not just converts, CPG is it. Two structural advantages make it the best lane for durable growth and meaningful exits on Amazon.
1) The Repeat-Purchase Flywheel
Acquire a shopper once and the economics improve with every reorder.
- Launch economics: Day 1 CAC is subsidized by Month 2, Month 3, and Subscribe & Save.
- Media efficiency: You can bid higher to win new customers because LTV pays it back.
- Retention mechanics: Subscribe & Save, bundling, and pack-size progression lock in habit. Coffee is the archetype: when you nail flavor, grind, and value, customers stick.
2) A More Protected Competitive Field
In many CPG subcategories, direct factory competition from China is muted by tariffs and compliance friction. The result is less price compression and more room for brand to matter. Packaging, claims substantiation, reviews, and trust become real moats instead of temporary tactics.
SmartScout’s CPG Leaders for 2025
- Coffee Pods – $149.9M | 470 brands | 79% Amazon share | +22%
- Blended Vitamins – $149.1M | 2,591 brands | 12% share | +34%
- Dry Dog Food – $123.8M | 225 brands | 89% share | +22%
- Face Moisturizers – $108.7M | 1,772 brands | 41% share | +56%
- Facial Serums – $101.9M | 1,406 brands | 30% share | +40%
- Electrolyte Drinks – $92.8M | 410 brands | 7% share | +62%
- Shampoo – $91.9M | 1,330 brands | 66% share | +35%
- Magnesium Supplements – $87.8M | 1,004 brands | 17% share | +45%
- Whey Protein Powders – $83.4M | 337 brands | 46% share | +36%
- Multivitamins – $79.6M | 754 brands | 39% share | +45%
How to read this list
- Breakout lane: Electrolyte Drinks combine low Amazon 1P share (7%), strong growth (+62%), and a manageable brand count. That is a rare setup for agile operators.
- High growth, heavy crowding: Face Moisturizers and Facial Serums are surging, but thousands of brands fight for the same keywords and shelf space. Only enter with a tight brand story and clinical proof.
- Big revenue, limited access: Dry Dog Food and Coffee Pods are huge, yet highly controlled by Amazon 1P and entrenched incumbents. Without a differentiated supply position, margins suffer.
Turning CAC into LTV
- Design the retention arc: Launch with a trial size, follow with a better-value pack, then push Subscribe & Save at delivery three.
- Control inputs: Lock down consistent supply, lot tracking, and QC so customers never experience variance.
- Own the claim set: Make one primary benefit the hero. Back it with testing, transparent labels, and clear use instructions.
- Compete on convenience: Prime eligibility, fast replenishment reminders, and easy multi-pack options beat small price gaps.
- Measure the compounding: Track TACOS on first orders vs. cohorts at 30/60/90 days. Reinvest when LTV:CAC clears 3:1.
Red Flags to Avoid
- Commodity positioning: If your PDP is indistinguishable, you will rent clicks and never build subscribers.
- Review volatility: Quality drift kills replenishment. Protect manufacturing consistency before scaling ads.
- Category misfit: Chasing top-line revenue in 1P-dominated niches rarely ends well for 3P sellers.
Bottom Line
CPG wins on Amazon because customers come back and the playing field rewards real brand building. Pick a lane where 1P share is low, growth is real, and you can tell a credible story. Then let the repeat-purchase flywheel do its work.
FAQS
