Fast-moving consumer goods Market is predicted to reach Euro 19,032.31 Billion at a CAGR of 6.50% during the forecast period 2023-2032

Market Research Future (MRFR) has published on the “Global Fast-moving consumer goods Market”.

Market Synopsis

According to the MRFR analysis, the Fast-moving consumer goods (FMCG) Market was valued at Euro 10,703.32 billion in 2023 and is projected to reach Euro 19,032.31 Billion by 2032 at a CAGR of 6.50 %. The organized retail sector composed of retail formats and units like supermarkets, hypermarkets, big retail chains, and stores, is one of the key distribution channels in the fast-moving consumer goods including food & beverages, personal care, healthcare, homecare, electronics, and office supplies products. India, one of the key potential markets in the Asia-Pacific region has been witnessing strong growth in the organized retail sector space over the years, according to the India Brand Equity Foundation data, by the year 2023 to 2025, there are around 60 shopping malls span around an area of 23.25 million square feet is expected to be operational across the nation. Further, the country’s retail sector has received an investment of around Euro 4.51 billion between 2000 and 2022 owing to the wide availability of low-cost labor and raw materials have resulted in the strong growth of the organized retail sector in India.

Organization for Economic Co-operation and Development defined the middle-income class population as those households whose income is in the range of 75% to 200% of the annual median income of a nation. Though the share of the middle-class population in the global population witnessed a dip compared to previous year growth’s, the overall growth of the middle-income class population in the forthcoming years is expected to grow significantly registering a population of around 8,667 million people by the year 2030. The increase in the middle-income class population was very significant in some of the economies including the United States, China, India, and Canada. India has recorded an annual growth of 11.92% in the total population which falls in the middle-class definition between the years 2011 and 2021. The Hellenic Republic, the presidency of the government special secretariat of foresight in its economy & growth article has highlighted that by 2030, the two populous countries China and India are expected to occupy 66% of the total middle-class population across the global countries. The continuous and strong growth of the middle-class population translates to increased purchasing power for a significant amount of the population globally. In addition to this, the rapid urbanization in some of the key economies in the world has brought considerable shifts in consumer preference and consumption patterns for various day-to-day products including food & beverage, home care products, and electronics goods. Over the years with the advent of technology, the accessibility and affordability of the smartphone and the internet have increased and reached the nooks and corners of the globe including the rural markets, especially in developing countries including India, Kenya, Ghana, etc. India, one of the key potential markets in the FMCG market and whose rural market has a significant share in the FMCG product sales has around 399 million internet users in rural parts of India in 2021 which is 14% more than the preceding year. This number is expected to grow further and strongly in the upcoming years.  With rural India accounting for over 35% of the total FMCG revenue generated in India, the deep penetration of the Internet is paving new ways and opportunities for manufacturers.

On the basis of production type, the inhouse segment held a significant share in the fast-moving consumer goods market in 2022 owing to the increased benefits possessed by inhouse production, which in turn has positively impacted its market growth. As a part of this, the ability to save money over time is one of the key advantages of in-house manufacturing. The companies cover the costs of supplies, labor, and shipping when they outsource production. These expenses can easily mount, especially if they come from foreign providers.  As a result, in-house manufacturing, no longer required to cover these additional expenses. Additionally, since they have control over the production process, they can make adjustments that reduce costs even more. Another benefit is that in-house production, the company have the freedom to modify their consoles without consulting a separate supplier. If the company needs to make alterations or changes at the last minute because of consumer requests, this can be useful.  Additionally, the company can manufacture specialized goods in-house that cannot be obtained from outside vendors or other third parties. The company’s ability to go above and above for their consumers is greatly increased by this perk.

Based on the distribution channel, the store-based segment accounted for a market share of 86.8% in 2022 and is expected to exhibit a CAGR of 6.41% in the upcoming years owing to the presence of various store-based across the globe coupled with increased preference of consumers to purchase from them is set to drive its market growth in the future. As a part of this, according to MRFR analysis, in 2023, Tesco had 4,169 stores open, including franchise locations, in the UK and the Republic of Ireland. Since 2012, there have been more stores. When compared to the prior fiscal year, the company's shop count increased by the most 246 in 2014. Compared to previous years, store numbers barely increased slightly.

The growing organized retail sector across Asia-Pacific and Africa is likely to boost its market growth in the upcoming years. For instance, according to MRFR analysis, after the pandemic, India's retail industry saw a market size fall of 8.5% in FY 2021. While online retail continued to flourish, organized and traditional retail categories took a significant damage. The value of India's FMCG industry was around a 920.48 billion Euros in FY 2022, with conventional retail accounting for 81.5 percent of that value. Organized brick-and-mortar retail accounts for 12 percent of the total retail market, while internet sales channels account for 6.5 percent. Furthermore, the rising middle-class population across the globe is another factor boosting its market growth.

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COVID-19 Impact on the Fast-moving consumer goods (FMCG) Market

SARS-CoV-2 is the virus responsible for contagious diseases and caused a widespread pandemic across the regions in the world. The COVID-19 pandemic has brought different changes and obstacles in the operations of various businesses ranging from agricultural operations to electronics, from personal care products to automobiles, aviation to IT services, and many more sectors. The outbreak further caused severe volatility in the capital market further impacting the global economy negatively during the initial months of the pandemic. To tackle the spread of the virus spread, governments across countries have taken different strategies including the implementation of phased lockdowns as a means to curb the infection spread that resulted in the partial closure of essential goods and a complete halt of non-essential goods & services. Further, the movement of people and goods across borders has been restricted, due to which the shipment of goods from the production site and the end consumer has resulted in supply chain delays.

Though there were negative impacts on the production operations of the FMCG industries, the silver lining for the manufacturers during the outbreak is the increased demand for essential products including daily groceries, food products, beverages, home care, and personal care products compared to the normal times as the global population spent more time at home. In addition, the outbreak has impacted personal hygiene and sanitation awareness positively that translated to a surge in demand for products including hand sanitizers, cleaning products, disinfectant wipes, etc. Though the trend of online shopping for various FMCG goods has already gained some traction in a few markets, the pandemic has accelerated the adoption and growth of the e-commerce channels in the global market. Thus, the impacts of the outbreak of the virus on the fast-moving consumer goods (FMCG) market is quite mixed having both negative and positive effect.

There were strict restrictions on the movement of people and goods in public and commercial spaces during the initial phase of the pandemic which was also implemented in the manufacturing units to operate at reduced labor capacity. The local governments and authorities have directed the manufacturing units to follow a set of preventive measures to assure the safety and health of the workers from the spread of the virus spread. The procurement of the raw materials, a key role in the production of various raw materials posed a key challenge for the manufacturers during the lockdown as the raw materials are sourced from different suppliers including agriculture suppliers, chemical suppliers, electronic component suppliers, and many other suppliers who are present in both domestic and international markets

Shipping and logistics, one of the key stakeholders in the distribution of the fast-moving consumer goods was worst hit and had severe repercussions in the proper and efficient movement of the products from the raw material stage to the final product stage. The pandemic was responsible for various bottlenecks in the logistics and resulted in the weakening of credit availability as the interest rates were hiked by the governments of the key developed countries including the UK, the US, France, Canada, etc.

A few of the developed countries' governments spiked the interest rates and the global capital market was skeptical regarding the market growth, there was a credit crunch for the various production and manufacturing facilities spanning across different sectors. The credit crunch in addition to the surge in shipping & storage costs has impacted the pricing of the raw materials and final products negatively. Moreover, the panic-buying in the initial phase of the lockdown has increased the demand for a few of the essential goods including toilet paper and hand sanitizer which resulted in huge hikes in their prices. For instance, the price of toilet paper of around 36% of the brands in the United States witnessed an increase of 20% in the United States, as per the data published by the U.S. Prig Education Fund. Further, the data highlighted that 40% of the facial tissue brands have increased their product listing price by approximately more than 20 percent.  Similar were the price hikes of various products including hand sanitizer, food & beverage products, etc.

Competitive Landscape

The global fast moving consumer goods market is projected to register a CAGR of 6.60% during the review period. The market's growth can be attributed to the rising demand from the food and beverages industry. Market players are expected to witness profitable growth opportunities in the global market due to the increasing demand of fast moving consumer goods from global consumers in the market. The FMCG has remained heavily fragmented with tier-1 players accounting for less than one-fourth of the market and market continues to see newer entrants continuing to try and consume a revenue pie from the ever growing FMCG industry. The key players operating in the global fast moving consumer goods market include Nestle SA, PepsiCo Inc, Coca Cola, Unilever, Tyson Foods, P & G, JBS, Kraft Heinz. The tier-1 players have a global reach and diverse product portfolios. Nestle SA, PepsiCo Inc, Coca Cola, Unilever are some of the players dominating the global market due to brand reputation, product differentiation, financial stability, and diversified regional presence. The market players are focused on investing in research & development and adopting strategic growth initiatives such as product launches, joint ventures, patent approval, acquisition, expansion, certifications, partnerships, and investment to strengthen their market position and capture a large customer base.

Segmentation

By Type:

Food & Beverages: The food and beverages segment are further bifurcated into food, confectionary, beer, liquors & spirits, wine, softdrinks, other beverages, cereals, grains and wheat. The growing population across various regions of the world is likely to increase the demand of various food and beverages products which in turn would boost its market growth in the upcoming years. As a part of this, according to the Food and Agriculture Organization, between 2009 and 2050, the world's population is projected to increase by more than a third, or 2.3 billion people. This is a considerably slower with 3.3 billion people, or more than 90% of its current population, were added during the previous 40 years of expansion. According to projections, developing nations will see almost all this expansion. Sub-Saharan Africa will experience the largest population growth among the latter group (+114%), while East and Southeast Asia would experience the slowest (+13%). Urban areas are expected to account for 70 percent of the world's population in 2050 (up from 49 percent now), whereas rural populations are predicted to decline after reaching a peak somewhere in the next decade.

According to predictions, increasing global food production by almost 70% between 2005–2007 and 2050 will be necessary to feed the 9.1 billion people who will inhabit the planet by then. It would be necessary for production in the developing world to almost treble. This indicates that production of several important commodities will rise significantly. For example, annual beef production would need to increase by nearly 200 million tons to reach 470 million tons in 2050, with 72 percent of that total going to developing nations, up from the current 58 percent. Producing the types of foods that are deficient would also be necessary to sufficiently feed the world's population and assure nutritional security.

The food segment includes a ranges of food items ranging from baby food, bread & cereals products, convenience food & snacks, dairy products & eggs, fish & seafood, fruits & nuts, meat, oil & fats, pet food, sauces & spices, spreads & sweeteners, and vegetables. Hence, the growing population across the various regions coupled with the increased preferences for different consumer groups to eat bread is likely to boost its market growth in the upcoming years. As a part of this, according to MRFR analysis, most gen z and millennials (78%) include carbohydrates in their daily diet. In the previous years, many people (73%) and 63%, respectively, bought bread and sweet baked goods. Many types of baked foods have favorable nutritional connections for millennial and gen z consumers. Furthermore, the majority (75%) of younger customers are unaffected by concerns about carbohydrates when it comes to eating baked goods.

Confectionary includes a range of items such as sweets, candied nuts, chocolates, chewing gum, sweetmeats, pastillage, and other confections produced primarily of sugar are referred to as sugar confectionery. In some cases, sugar-free versions of sugar confections and chocolate-based confections are separated into their own categories. The most common sugar confectionery is referred to by the term’s sweets (used in the UK and Ireland) and lollies (used in Australia and New Zealand).

Besides this, the global consumption of various types of alcoholic beverages such as beer, liquors & spirits, wine, are likely to drive its segmental growth in the upcoming years. As a part of this, according to MRFR analysis, the amount of beer consumed worldwide was about 185.60 million kiloliters. The spread of COVID-19 had a detrimental effect on 2020, but a recovery was noted in 2021, leading to a 4.0% increase over the year before. China placed first for the 19th year in a row, up 5.6% from the year before. However, when compared to other significant Asian nations, Japan, Vietnam, South Korea, and Thailand all had a downward trend, with year-over-year declines of 5.2%, 5.5%, 3.2%, and 3.0%, respectively. India, which fell from 13th in 2019 to 24th in 2020, considerably improved to take the 14th spot. Apart from this, the recent government support to strengthen the wine sector particularly across the Asia Pacific region is likely to boost its market growth in the upcoming years. As a part of this, the state governments of Maharashtra and Karnataka have taken action to help the wine sector through various subsidies since production is anticipated to increase in the upcoming years. These initiatives include reducing distribution limits, lowering or eliminating excise taxes on locally made wine, and offering financial incentives for the development of wineries and vineyards. On imported wines and wines from other states, several states have likewise levied high excise charges. In Maharashtra, the state government has loosened rules and restrictions for establishing vineyards and wine retail establishments. To encourage investment in the sector, the state government has developed wine industrial parks.

Soft drinks are refreshing, sweet, fizzy, and alcohol-free. They are made consisting of carbonated water mixed with sugar and fruit or plant extract-based syrup.  The growing consumption of soft drinks of various flavors, particularly among the various age groups in the Asia-Pacific region is set to provide lucrative opportunities for its market growth in the upcoming years. As a part of this, according to MRFR analysis, the soft drink industry has grown in value over the last two years at a compound annual growth rate (CAGR) of 11% and in volume at a CAGR of 5%. In the nation, 5.9 billion liters of soft drinks are used annually by 1.25 billion individuals. India consumes a lot of soft drinks per person, but only around one-twentieth as much as the United States, one-tenth as much as Kuwait, one-eighth as much as Thailand and the Philippines, and one-third as much as Malaysia.

Other beverages include a range of items such as fruit & vegetable juice, mineral water, roast coffee, instant coffee, tea and others. The growing consumption of fruits and vegetables juices owing to the various benefits associated with its consumption such as boosts immune system, improve digestion, provides energy, reduces the risk of chronic disease such as heart disease and stroke and many more is likely to boost its sales in the upcoming years. Hence, the growing number of people suffering from heart diseases is set to increase the demand for juices. For instance, according to MRFR analysis, In India, there were 19,238 heart attack-related fatalities in adults between the ages of 30 and 60 in 2020. The number of heart attack deaths in this age group increased by more than 6% between 2020 and 2021. In India, heart attacks claimed the lives of 2,541 people ages 18 to 30 in 2021 and 2,695 in 2020. This indicates that from 2020 to 2021, the number of heart attack deaths in this age group declined by 0.057%.

Furthermore, the curbing population particularly across the Asia-Pacific region has increased the production of cereals, grains, and wheat which in turn is set to create huge opportunities for its market growth in the future. As a part of this, India's food grain output hit a record 315.7 million tons in 2021–22 despite the challenges faced by climate change, according to the Economic Survey 2022–23 that was delivered to the Parliament by the Union Minister of Finance and Corporate Affairs. Additionally, according to the First Advance Estimates for 2022–23 (Kharif alone), the nation's total food grain output is predicted to reach 149.9 million tons, exceeding the average for the preceding five years (2016–17 to 2020–21). According to the survey, pulse production has also been much greater than the average of 23.8 million tons over the past five years.

Tobacco Products: Tobacco is usually a plant that contains nicotine, a highly addictive substance. Tobacco products are created by processing the plant's leaves. Tobacco products includes smokeless tobacco, hookah, e-cigarettes, heat-not-burn tobacco products, cigars and many more.  The increased consumption of tobacco products particularly across the low- and middle-income countries is likely to increase its sales, eventually contributing to its segmental growth. For instance, according to WHO the world's largest tobacco producer and user is China. More than 300 million smokers, or about one-third of the global population, live in China. Currently, more over half of adult men consume tobacco. China is home to around one out of every three smokers worldwide. In addition, second-hand smoke (SHS) is a daily occurrence for over 700 million non-smokers in China, including over 180 million children. Every year, SHS exposure results in 100,000 fatalities. However, the threats associated with the consumption of tobacco products coupled with the increased imposition of tax on tobacco products are likely to serve as a challenge for its market growth in the upcoming years. As a part of this, according to WHO, the most economical strategy to lower health care expenses and cigarette usage, particularly among young people and low-income individuals, is to impose tobacco taxes, which also boost revenue in many nations. The tax hikes must be significant enough to raise prices above the rate of income growth. In high-income countries, a 10% increase in tobacco prices results in a 4% drop-in smoking rates, while a 5% drop occurs in low- and middle-income nations. Tax evasion and avoidance, both legal and illegal, reduce the effectiveness of tobacco control measures, especially greater tobacco taxes. The tobacco industry as well as others frequently assert that the high tariffs on tobacco products are to blame for tax evasion. However, evidence from numerous nations shows that even with higher tobacco taxes and prices, illicit trafficking can be stopped. In addition, India is one of the 181 nations that have signed onto the WHO Framework Convention on Tobacco Control, according to the National Health Mission's official. On the retail price of all tobacco goods, including cigarettes, it suggests a tax of at least 75%. However, India's cigarette taxes are lower than the WHO's recommended levels.

Beauty & Personal Care: Beauty & Personal care products include cosmetics, skin care, hair care & styling products, perfume and many more which are used for personal hygiene and to improve the appearance of an individual. Moreover, the presence of various government bodies across Europe coupled with the wide usage of beauty & personal care products across the region is likely to contribute to its segmental growth. For instance, according to Cosmetic Europe, the majority of Europe's 500 million customers use cosmetics and personal care products every day to safeguard their health, improve their wellbeing, and increase their self-esteem. Cosmetics have been used by people for countless years. Some cosmetic and personal care products are projected to have a market penetration of close to 100% in the EU. In France, 98% of adult women and 94% of adult men use liquid shampoo, while deodorant use is nearly at the national average in the UK (94% of women and 87% of men use deodorants). Besides this, the rising working population, increasing awareness among consumer regarding the benefits associated with the usage of organic personal care products, shift in consumer preference as well as high disposable income are all contributing to its segmental growth. For instance, according to European Union, in the European Union (EU), the employment rate for women (aged 20 to 64) in 2018 was 67%, up one percentage point (pp) from the previous year and five pp from 2008. Although it was still 12 pp (*) lower for women than for men of the same age, the employment rate for women was still higher. Sweden had the highest employment rate for women in the EU Member States in 2018 (80%), while Greece (49%) and Italy (53%) recorded the lowest rates. Men had a greater employment rate than women did across all Member States. But the gender employment gap has shrunk from 15 percentage points in 2008 to 12 percentage points in 2018.

Healthcare: The healthcare sector in the FMCG industry includes a range of products such as medicine, vitamins and dietary supplements, oral care, feminine care and many more. Moreover, the wide consumption of various types of dietary supplements among athletes owing to the various benefits associated with their consumption is likely to drive its market growth in the upcoming years. For instance, some supplements are helpful in giving athletes who have cut out a food group owing to a dietary allergy or another medical condition more calories. Athletes who need to put on weight or make up for a known vitamin shortfall can also benefit from supplements. Some popular supplements have ergogenic properties that improve energy synthesis and recovery. Protein, creatine, caffeine, bicarbonate, and beta-alanine are the ones that have been the subject of the most research.

Besides this, the curing population across various regions coupled with the large pool of people suffering various diseases has increased the demand for medicines, which in turn would open huge opportunities for its market growth. As a part of this, according to MRFR analysis, by the time the world population reaches 7.6 billion people in 2020, each person will use around 1.6 SUs of medicine daily. Most affluent nations use more than two SUs per person per day, and by 2020, China, India, Brazil, and Indonesia will have seen significant rises in average pharmaceutical volume utilization. In addition, approximately 818 billion to 916 billion doses will be used by the 889 million people in Europe in 2020, with most of these increases coming in central and eastern European nations like Poland, where usage will be close to the norm for developed markets. In 2020, Indonesia will switch to 3.26 standard units (SUs) per person per day, which will account for half of the growth in usage in Asia Pacific, which has 1.3 billion people (excluding China, India, and Japan). With 1.6 billion inhabitants, the Middle East and Africa region will have just 20% more consumption overall while having a population that is 2.5 times that of Latin America (657 million). In addition, over the next five years, spending on medications will rise by 31-34% (29-32% on a constant currency basis), while usage of medications will only rise by 24%. Demographic factors, such as an ageing population in developed nations and rising affluence, will be the primary drivers of volume increase along with wider availability of healthcare in emerging markets, to play a crucial role. The other portion of the increase in spending will be fueled by rising medicine costs brought on by the widespread use of newer, more expensive therapies as well as rising unit pricing in some nations.

Home Care: Home care includes a range of products which are used in homes such as cleaning products, laundry products, dishwashing products and many more. Hence, these products are widely used in household activities to maintain health requirements and well-being of an individual. Moreover, the increasing number of people residing in flats and homes across the various regions of the world is likely to increase the demand for home care products such as laundry products, dishwashing products and many more. As a part of this, according to the European Union, in 2019, 46% of EU citizens lived in flats, compared to 35% who lived in detached homes, 19% who lived in semi-detached or terraced homes, and 35% who did not. In 14 Member States, flats were the most prevalent housing form, particularly in Latvia (66% of the population), Spain (65%), and Estonia (61%). Ireland (8%) and the Netherlands (21% of the population) had the lowest percentage of citizens who lived in apartments among the Member States. In contrast, in Croatia (68% of the population), Slovenia (66%), Hungary and Romania (both 65%), and Denmark (54%), more than two-thirds of the people resided in detached homes. More than half of the population only resided in The Netherlands and Ireland, two EU members. In the EU, seven out of ten (70%) residents in 2019 resided in a home that they owned. In all EU Member States in 2019, there were more owners than tenants, with the largest percentages of owners being found in Romania (96%), Hungary (92%), Slovakia (91%) and Lithuania (90%). Germany and Austria had the lowest percentages of owner-occupied homes with 51% and 55%, respectively.  Hence, the above factors have increased the demand for home care products, owing to which manufacturers are coming up with a wide range of products to cater to growing consumer demand. As a part of this, in March 2023, Reliance Industries launched a variety of personal care and household goods, including laundry detergents, toilet and floor cleaners, bath and washing soaps, and other products. It plans to release a variety of goods, including glimmer beauty soaps, get real all-natural soaps, puric hygiene soaps, dozo dishwashing bars and liquids, home guard toilet and floor cleaners, and Enzo laundry detergent powder, liquid, and bars. with a total fatty matter of 76%, real and puric spas fall into the grade 1 category. Higher fatty content indicates higher quality.

Electronics: The electronics segment within the FMCG industry includes a range of items such as digital cameras, laptops, cell phones, air-conditioners, refrigerators and many more. The wide usage of electronics products by consumers coupled with the growing government support to strengthen the sector is likely to boost its market growth in the upcoming years. As a part of this, in June 2022, the electronics and IT ministry of the Indian government has up until May 31 approved a total of 314 applications with proposed investments totaling Rs. 86,824 crores. Bosch Automotive Electronics Private Limited invested Rs. 596 crores in the plans that were approved in May. It approved 16 bids from local and foreign businesses in October 2020, entailing an investment of Rs. 11,000 crores under the Production Linked Incentive (PLI) plan to produce mobile phones valued at Rs. 10.5 lakh crore over the ensuing five years. Along with Samsung and Rising Star, the firms also include Foxconn, Hon Hai, Wistron, and Pegatron, contract makers for Apple's iPhone. The domestic businesses Lava, Bhagwati (Micromax), Padget Electronics (Dixon Technologies), UTL Neolyncs, and Optiemus have had their proposals accepted.

According to recent study between April 2022 and February 2023, India's smartphone exports reached a value of over EURO 8.24 billion, according to figures from the India Cellular and Electronics Association (ICEA). This amount is nearly two times what it was during the same time last year. India's smartphone manufacturers have been exporting products worth roughly EURO 0.92 billion per month since September 2022. According to the ICEA, in addition to the MENA and South American markets, gadgets of Indian provenance are shipped to the UK, Netherlands, Austria, and Italy. In FY 2023, exports represent 24% of India's total manufacturing of mobile devices, up from 16% in the preceding year. In FY 2023, India is anticipated to generate smartphones worth EURO 36.6 billion, representing a 20% year-over-year growth. Out of them, devices worth around EURO 9.16 billion will be exported.

Office Supplies: Office supplies cover a broad range of products that companies of all sizes regularly use and utilize every day. Pens, writing paper, notebooks, post-It notes, scissors, erasers, staplers, labels, tape, basic reference materials (dictionaries, etc.), envelopes, and toner cartridges are just a few of the standard office supplies used by even the smallest company or home office. Moreover, the growing expansion of the tech firms across various regions has increased the demand for office space which in turn is likely to create huge opportunities for its market growth in the upcoming years. As a part of this, according to IBEF, India is one of the world's fastest-growing office space marketplaces, owing to rising demand for office rentals, the emergence of flexible office spaces, and the nation's expanding start-up and IT industries. New office space supply in India reached 25.11 million square feet (sq. ft.) in the first half of 2021 (January-June 2021), up 75% year over year across key cities (Delhi-NCR, Mumbai, Bengaluru, Pune, Hyderabad, and Chennai). This increase can be attributed to real estate companies' increased confidence in the demand for workspace recovering.

Tech companies, which are expected to account for between 20 and 25 percent of the demand for leased office space over the next five years, are a major driver of the demand for office leasing in Asia-Pacific (APAC), which includes India. Bengaluru, which is well-positioned to offer proprietors future advancements and investment opportunities, is listed in the survey as one of the top five destinations for occupiers, giving a strong infrastructure and a pool of talent. As a new tech hub, Hyderabad is also increasing India's real estate growth prospects. Additionally, Noida Motorway and Gurugram's Golf Course Extension Road have been listed as two of the top 10 developing submarkets in APAC in terms of tech occupiers. In India, business process outsourcing (BPO) rules the workplace. According to MRFR analysis, the market is anticipated to experience an increase in space at a rate of between 100 and 120 square feet per person after COVID-19. Hence, the growing office sector across the Asia-Pacific region is likely to increase the demand for office supplies, eventually contributing to its segmental growth.

Production Type:

Inhouse: Inhouse refers to the idea of reclaiming techniques and processes that were previously outsourced. It is the reverse of outsourcing, which has historically been employed to minimize costs or when a business lacks the resources (usually employees, machinery, technologies, or other skills) necessary for a particular task. Moreover, the growing benefits possessed by inhouse production has increased manufacturers’ inclination towards it, which in turn is a vital factor boosting its market growth. As a part of this, smaller businesses, especially those with a unique product value proposition, greatly benefit from the capacity to customize. In-house manufacturing makes it possible to fulfil client requests for customized products more quickly than outsourcing, which requires that customizations go through several channels and procedures. Another advantage is that a study from Karlsruhe University of Applied Sciences indicated that widespread outsourcing of industrial processes has a significant negative influence on a company's profit and productivity, contrary to conventional belief that outsourcing is always less expensive. In-house production is frequently a more economical option, particularly for companies that produce small numbers of highly customized products. This is because there are fewer steps in the production process between the wallet and the final product.

Moreover, the presence of major players adopting inhouse production is set to boost its market growth in the upcoming years. As a part of this, in April 2021, Unilever expanded the number of its global digital marketing centers to enhance its internal capabilities. These hubs were developed to promote communication amongst experts in audience analytics activation, online engagement, performance marketing, content management, and data governance.

Contract Based: Contract based manufacturing is when a manufacturer contracts with another business to produce certain parts or goods over a predetermined timeframe. A company may enter a commercial relationship with a contract manufacturer—which is regarded as a form of outsourcing—to produce parts, components, or full products for the company in accordance with their specifications. Following that, the corporation either completes its own product or uses the manufactured goods in its own production process. Contract manufacturers are typically autonomous businesses that exclusively subcontract with or sell their products to other businesses or governmental organizations. Although inhouse production offers various types of advantages, contract-based production also offers various benefits. For example, a company can save its own manufacturing time by using a contract manufacturer to produce only particular parts or components to support their own production line. This results in quicker time to market, better delivery, and better customer service.

Contract manufacturing enables companies to maintain reliable production of high-quality goods. By establishing that standard, the company can increase brand recognition and earn a reputation as a trustworthy distributor. Better business relationships with possible collaborators and future contractors may result from this as well. However, some of the drawbacks associated with contract-based manufacturing includes limited control. As a part of this, there are features and requirements that the hiring company wants in a product. Up until the product is given up for review, the company has very little influence once those desires have been expressed. The manufacturing and production of the product are mostly outside the client's control. Contrarily, the contract manufacturer often has little to no influence over the design of the product. Although the contractor is permitted to offer suggestions, there is no assurance that they will be accepted.

Distribution Channel:

Store Based: Store-based distribution channel usually includes supermarkets & hypermarkets, specialty stores, department stores and many more. A supermarket and hypermarket are usually a large retail space where products are displayed so that customers can choose what they want. Customers always fill a trolley from the shelf with what they desire, then have the counter clerk charge their credit card. The expanding advantages that supermarkets and hypermarkets have, like operating on a self-service basis, providing a variety of goods discounts accessible on various commodities, giving customers freedom of choice, and making significant profits, are expected to drive the market's expansion. Furthermore, the presence of many supermarkets across various regions of the world, coupled with the frequent visit of consumers there is likely to contribute to its overall segment growth. For instance, according to MRFR analysis, 88% of UK customers usually shopped at supermarkets for food and other necessities in 2022. Another study found that one-third of consumers made two to three weekly trips to the store to buy food. 

A specialty store is typically a retail business that offers unique and specialist goods. These stores focus on selling a certain product category or brand. The ability to provide customers with thorough knowledge about the product of their choosing is one of the rising advantages offered by specialist businesses, such as specialty shops. Specialty retailers benefit from better personnel and training, which produces knowledgeable workers. Employees are more likely to specialize in one type of product, making it easier for them to provide potential customers with thorough information that best suits their needs. For instance, a potential customer wishing to buy an electronics product will likely visit an electronics store because it will be easier for them to choose the item from there.

Non-store Based: Non-store based usually includes e-commerce websites such as Amazon, Flipkart, and many others. E-commerce is a method of distribution that uses the internet to move products and services from suppliers to customers. One way for people to buy and sell goods more conveniently is through e-commerce. The main advantages of this channel include its quick expansion, global marketing reach, direct consumer control, and a host of other features. The recent launch of popular FMCG products through an e-commerce platform and the rising sales of fast-moving consumer goods through online sales channels, particularly after the pandemic and as consumers prefer more online shopping and find it convenient, are expected to boost its market growth in the coming years. For instance, according to MRFR analysis, more than 40% of UK consumers in 2021 thought they would continue buying food online at the same rate they did during the pandemic after it ended. A further third of respondents stated they would keep doing their grocery shopping online, albeit less frequently. These goals are reflected in predictions for the penetration and growth rates of online grocery in the upcoming years. The annual growth and usage rates are anticipated to slow down given the opportunity to shop safely once again in stores, while this is not likely to be detrimental.

By Region:

Europe: Europe market value is expected to be Euro 2,698.2 billion in 2022 and Euro 4,004.2 billion in 2030 growing at a CAGR of 5.12% during the forecast period. Europe basically includes Germany, France, Italy, Spain, UK and Rest of Europe are all included in the analysis of the European market. Europe continues to hold a significant share in the global fast moving consumer goods market, owing to the increasing initiatives taken by key players to expand the production of various beverages across the region which in turn would boost its market growth. As a part of this, in June 2023, Carlsberg Group invested in Ukraine to upgrade The Kyiv Brewery's production line to enhance the yield capacity of canned goods by 80%. One of the company's biggest investment initiatives for the year is represented by the action. The newly created production line will be used to produce products for a variety of brands, including Lvivske, Carlsberg, Kronenbourg 1664, Arsenal, Kvas Taras, Somersby, Seth & Riley's Garage, Staropramen, Miller Genuine Draught and Battery. Cider, energy drinks, soft drinks, and beer (alcoholic and non-alcoholic) are popular goods being bottled. At a time when Ukraine is engaged in a protracted conflict with Russia, the investment represents a major player's confidence in the nation. The Carlsberg Group committed to invest 1.5 billion hryvnias, or €40 million (US$44 million), in Ukraine this year.

Besides this, the increasing policies adopted by major government bodies operating across the region to strengthen the wine sector is likely to fuel its market growth in the upcoming years. As a part of this, the wine industry is supported at the EU level through wine assistance schemes in EU nations that produce wine. An annual budget of €1 061 million from EU funding is set aside to support the sector's investments, innovations, product promotion, restructuring, and harvest insurance. The wine support initiatives are part of the strategic plans for the current CAP. The budget for the wine industry will remain unchanged from the previous framework, and all currently eligible measures will be maintained. However, the goals and interventions to support a more sustainable wine sector will be strengthened, with at least 5% of the expenditure to be devoted to such goals.

The Commission has provided more latitude for the financial year 2023's wine support programs implementation and finance. This will enable Member States to better adapt their policies to the state of the wine market in the current year and to make better use of green harvesting to avert or lessen a potential wine excess in the next year. Beneficiaries of the wine assistance programs are currently permitted to modify their planned activities and, in properly justifiable situations, to carry out their original projects only partially. The EU will also boost the co-financing rate of initiatives connected to restructuring, green harvesting, promotion, and investments from 50% to 60%. Hence, such initiatives are likely to contribute to its segmental growing during the forecast period.

Asia Pacific: Asia-Pacific is anticipated to create a Euro 4,355.55 billion opportunity from the year 2022 to 2030. Asia-Pacific is the most populated region in the world, consisting of some of the major economies, including Japan, China, India, Australia & New Zealand, and Rest of Asia-Pacific. The FMCG market is expected to grow across the region owing to the increasing strategies adopted by governmental as well as non-governmental organizations to strengthen the electronic sector which is set to positively influence its market growth in the upcoming years. As a part of this, India is actively seeking to increase its domestic manufacturing capacity in the electronics sector, taking advantage of the size of its digital market and its strengths in the information technology sector. Accordingly, the National Policy on Electronics 2019 (NPE 2019), which was authorized in February of that year to replace the NPE 2012, was announced by the Ministry of Electronics and Information Technology (MeitY). In addition, by enhancing local capacity to create key components, such as chipsets and 5G telecom equipment, India hopes to establish itself as a worldwide centre for electronics system design and manufacturing (ESDM) through NPE 2019. The policy initiatives and programs put in place under NPE also foster a climate that is favorable for business and investment, which helps the sector be more competitive internationally. The Indian government has developed several incentives and programs to increase electronics production. These include financial incentives for sizable investments in the semiconductor manufacturing industry, assistance with export promotion, and support for export promotion.

Besides this, the increasing investment across the region is set to boost its market growth in the upcoming years. For instance, the government has recently made good investments in and supported the FMCG industry. The industry experienced healthy FDI inflows of EURO 18.42 billion from April 2000 to March 2022 Additionally, the Department of Consumer Affairs has been given Rs. 1,725 crore in funding, while the Department of Food and Public Distribution has been given Rs. 215,960 crore in funding. To promote Indian food product names in foreign markets, the government approved the Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) in FY 2021–2022, with an investment of Rs. 10,900 crore (EURO 1.28 billion).

Africa: The region accounted for 1.5X times growth during the forecast period. Africa includes South Africa, Nigeria, Ghana, Kenya and Rest of Africa will witness moderate growth in the fast-moving consumer goods market in the upcoming years. The growing population across the region is likely to increase the demand for various types of fast-moving consumer goods such as food and beverages, beauty & personal care, healthcare, homecare, electronic and many more. For instance, according to MRFR analysis, by the middle of the century, the population of sub-Saharan Africa is expected to nearly quadruple to more than 2 billion. By 2070, it will surpass Asia as the most populous region in the world due to its three times quicker growth than the worldwide average. Africa has the world's youngest population, which certain studies indicated could either help the continent or make poverty worse, depending on how nations use this age group to spur economic growth.

Besides this, the increasing expansion policies adopted by key players to expand the production of alcoholic beverages to meet with the growing consumer demand is likely to serve as a key opportunity for its market growth. As a part of this, in August 2019, Heineken invested EURO 64.1 million in an expansion of its Sedibeng brewery to increase production to keep up with the rising demand for its beers. By 2020, the project will increase Sedibeng's capacity annually from more than 5 million hl to 8.5 million hl. At Sedibeng, southwest of Johannesburg, where the corporation brews beers like Heineken, Amstel, Windhoek, and Strongbow cider, construction has already begun. The largest beer market in Africa is in South Africa, which also has a sizable cider sector. Heineken has made the decision to move a portion of its production from Namibia, where it has a share in Namibia Breweries, the company that brews Windhoek Lager, to South Africa, where the beers are ultimately distributed. However, there are other reasons the company must expand its capacity as well. Strongbow is anticipated to shortly reach a sales volume of 1 million hl, whereas Heineken brand sales are currently rising in the double digits.