As one of the most critical sectors of the global economic landscape, the consumer goods and FMCG markets cover daily needs, essentials, and most commonly purchased items by consumers, such as food, beverages, personal care items, household products, and so on. They play a crucial role in our daily lives, contribute significantly to global trade, and uphold the integrity, adaptability, and reputation of certain types of businesses.
Consumer goods and FMCG trends: facts and insights
As one of the most critical sectors of the global economic landscape, the consumer goods and FMCG markets cover daily needs, essentials, and most commonly purchased items by consumers, such as food, beverages, personal care items, household products, and so on. They play a crucial role in our daily lives, contribute significantly to global trade, and uphold the integrity, adaptability, and reputation of certain types of businesses.
Consumer goods and FMCG trends: facts and insights
The consumer goods and FMCG industry encompasses a comprehensive, dynamic sequence of goods, typically consumed early and at a low cost. People typically consume these goods on a daily basis, exhibiting a high turnover rate. The industry comprises two subdivisions:
1. Durable Goods: They have a longer span of usage and include items like household appliances and furniture.
2. Non-Durable Goods: These are perishable and consumable items like food, beverages, and toiletries.
Leading sectors in consumer goods and FMCG
1. Essential Market: This includes packaged food, snacks, soft drinks, and alcoholic drinks.
2. Personal Care: This encompasses skincare, haircare, oral care, and cosmetics.
3. Household Items: Household products like cleaning agents, detergents, and consumables.
4. Health and Wellness: Companies such as nutritional supplements, over-the-counter drugs, and fitness also fall under this category.
5. Baby and Child Care: This includes diapers and baby foods.
Digital Influence: Branding leverages e-commerce, social media, and artificial intelligence to optimize the consumer's experience with the products.
Local touch: These companies build products according to the tastes, desires, and sometimes religious/cultural preferences within most sections of the world.
Direct-to-Consumer (D2C) Models: Some of these companies instead go straight to consumers, bypassing the long-established intermediary channel (retailers).
New Ways in Packaging: These include eco-friendly packaging, reusable packaging, efficient production cycles and operations, and minimization of packaging to prevent environmental damage.
Premiumization: Higher-end products experiencing heightened demand for FMCG industries are worth it.
Consumer Goods & FMCG Market Size
The global FMCG market has gained considerable value as a result of the rapid growth in population density, urbanization, and consumer spending. Asia-Pacific is considered the largest market by sales amount, accounting for 40% of the total global consumption of FMCG products, followed by North America and Europe.
Global Market Size: The global FMCG market is estimated to be worth almost $11 trillion as of 2024, and according to forecasts, it will grow at a 14% compound annual growth rate (CAGR) to reach about $14 trillion by 2030.
Impact on E-commerce: Due to the availability of digital platforms, the FMCG industry has seen a 25% increase in online sales.
Sustainability Initiatives: The demand for brown, biodegradable, and eco-friendly items has compelled manufacturing companies to innovate.
Health and Wellness: Increasing focus on health has ramped up the demand for supposedly better-for-you items to include natural, low-sugar, and plant-based products.
Emerging Markets: Urbanization and an increase in disposable income have led to the Far East region, Africa, and Latin America becoming significant markets in terms of consumption.
By Product:
Food & Beverages
Personal Care
Household Products
Health & Wellness
Baby Care
By Distribution Channel:
Hypermarkets/Supermarkets
E-commerce
Convenience Stores
Specialty Stores
By Region:
North America
Europe
Asia-Pacific
Latin America
The Middle East and Africa
Procter & Gamble (P&G): This company is well-known for its wide range of household and personal care brands.
Unilever: It holds a substantial stake in FMCG products, more than it does in sustainable FMCG products.
Nestlé: It is a global leader in food and beverages through its globally recognized brands.
Coca-Cola is a market leader in beverages with an extensive distribution network.
Pepsico: Iconic brands combine food and beverage offerings.
Types of Consumer Goods & FMCG
1. Convenience goods: These are products that one purchases with minimal effort, such as snack foods or toiletries.
2. Shopping goods: Products that need to be compared include clothing and electronics.
3. Specialty goods: These items differ from the previous ones in that they offer a single price, but the actual cost of the product may vary further, such as in the case of luxury cosmetics or fine wine.
4. Undesired goods: These items, such as insurance or first aid kits, are a result of the customer's ignorance of their needs.