Fast Moving Consumer Goods Market is predicted to reach USD 25 billion at a CAGR of 4.56% during the forecast period 2023-2030

Market Research Future (MRFR) has published on the “Fast Moving Consumer Goods Market”

Fast Moving Consumer Goods Market Highlights

Fast moving consumer goods are typically goods that are intended to be used frequently, consumed quickly, and have a high demand and low price. Additionally, FMCG products are frequently available and offered for sale in a range of stores and supermarkets. This enables shoppers to effortlessly and hassle-free purchase these items. In addition, FMCG purchases typically require little effort from the consumer. For instance, most people can identify their preferred brand or type of shampoo without having to try it first. This means that most customers arrive at the business with a clear idea of what they want and make an immediate purchase.

Besides this, the growing strategies adopted by major players to strengthen its foothold in the market and better serve the customers are likely to boost its market growth in the upcoming years. As a part of this, in May 2023, DKSH Business Unit Consumer Goods, a leading partner for consumer goods firms looking to expand their business in Asia and beyond, and Procter & Gamble (P&G) a consumer goods company have announced an extension of their current fruitful cooperation in Hong Kong and Macau for several years. In accordance with this contract, DKSH will keep using its devoted team of experts and distinctive capillary distribution network to promote excellence in sales, marketing, and in-store execution. This will help P&G provide customers with a positive shopping experience through all trade channels, including e-commerce and electro stores. Since 2016, DKSH and P&G have collaborated in Hong Kong. By combining their strengths and providing customers, shoppers, and consumers with greater value, DKSH and P&G will accelerate growth after successful rollouts and implementation plans, and they will establish an even stronger presence in the quickly growing consumer goods industry. The agreement takes on extra significance because it is being renewed in conjunction with DKSH Hong Kong's 100th anniversary. This significant occasion underscores the relationship's continued strength and the joint commitment to provide consumers in Hong Kong and Macau with great service and value.

Market Synopsis

According to the MRFR analysis, the global Fast Moving Consumer Goods market size is projected to reach USD 22,863.25 billion by 2030 at a CAGR of 4.56%.

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.

Similarly, the census data of the Kenyan government shows a 13.7% internet penetration in the rural market in 2019, and the country’s mobile money program M-PESA penetrated deeply in the rural markets in 2013 with 80% of the households utilizing it for monetary transactions for the purchase of various goods and services. This trend of digitalization helps the rural population in the key emerging market in knowing the product offerings of the company, the convenience to purchase without traveling far distances, etc. Also, it helps the manufacturers to reach the rural markets with innovative marketing strategies and brand image enhancements. For instance, the Cocoa Cola company uses bulk SMS messaging as a key strategy to reach a wide range of populations including rural consumers and has spent approximately 70% of its marketing spend on Africa in SMS marketing and has witnessed significant revenue generation with the same.

 COVID-19 Impact on Fast Moving Consumer Goods Market

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 was 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.

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.

Competitive Landscape

The key players operating in the global Fast Moving Consumer Goods market include Nestle S.A. (Switzerland), Pepsico, Inc. (US), Coca Cola (US), Unilever (UK), Tyson Foods (US), Procter & Gamble Co. (US), L’Oreal SA (US), Anheuser-Busch InBev (Belgium), JBS Foods (US), and Kraft Heinz (US), are dominating the market through constant product innovation and launches that are inline with the increasing demand in the global market. Further, in order to acquire a strong customer base in the global market, key manufacturers are expected to increase their investments in research & development and innovate their distribution strategies.

Access full report @ https://www.marketresearchfuture.com/reports/fast-moving-consumer-goods-market-11966

Segmentation

By Type

• Food and 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. 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.


• Tobacco and 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.


• 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).


• 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.


• 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.


• 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.


• 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.

By 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.


• 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.

By Distribution Channel

• Store-Based: Store-based distribution channel usually includes supermarkets & hypermarkets, specialty stores, departmental 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.


• 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 is one of the second-major markets for Fast Moving Consumer Goods after North America. It held a market share of 26.69% in terms of value in 2022 in the global Fast Moving Consumer Goods market. The region is likely to grow with a moderate CAGR which is 5.12% in the forecast years. 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.


• Asia-Pacific: Asia Pacific acconted for the majority of the share of the Global Fast Moving Consumer Goods that is 62.88% and has the most enduring prospects for the Fast Moving Consumer Goods market as it is forecast to grow with a CAGR of 7.35% till 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.


• 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.