Fast-moving consumer goods (FMCG), also referred to as consumer-packaged goods (CPG) are bought frequently, are consumed rapidly, are priced low, and are sold in large quantities. Nearly everyone in the world uses fast-moving consumer goods (FMCG) every day. It is the largest group of consumer products because of high consumer demand. It accounts for more than half of all consumer spending, but they tend to be low-involvement purchases.
FMCG products are categorized int four different types depending on the industry they are sold in. These include food and beverages, personal care, healthcare care, and home care.
Food and beverages products are further divided into processed food (bread, pasta and potato chips), ready to eat food (packets of nuts or crisps), and beverages (bottled water, coffee cups and cans of soda). These products have a short life span and high turnover rates.
Next comes personal care products, such as toothpaste, soap, shampoo, lotions, deodorants, etc. These can also be classed as FMCGs because they are also required by most consumers on a daily basis, usually bought at a low cost and not built to last.
Healthcare products such as plasters, bandages, syringes, condoms, etc. are generally in high demand, not built to last and very distributed.
Home care products include stuff used for household purposes such as kitchen towels, toilet rolls, bleach, dusters, etc. These are standardized, low durability goods that are highly distributed and sold at a usually low unit price.
According to a report published by Allied Market Research, the global FMCG market size is anticipated to reach $18,939.4 billion with a considerable CAGR from 2022 to 2031. Rapid increase in the global population is leading to the rise in consumption of consumer goods, thereby boosting the growth of the market. Numerous other factors such as changes in the lifestyle of consumers in developed and the developing countries, the growth in trend of online shopping, R&D for the new brands and products, the growth in urbanization and premiumization of FMCG products, expansion of FMCG network in rural areas of emerging economies, and the introduction of new products with attractive pricing are also driving the growth of the market to a great extent.
In addition, the Asia-Pacific region is currently dominating the market with the highest market share and is also expected to witness the fastest growth rate during the forecasted period, owing to the large population base. Consumption of processed and packaged goods has increased considerably with an increase in the working population. With the economic development in nations such as China and India, new business industries will emerge even more in the region
Chief editor of review team at FinancesOnline
Chief editor of review team at FinancesOnline Alex Hillsberg is an expert in the area of B2B and SaaS related products. He has worked for several B2B startups in the past and gathered a lot of first hand knowledge about the industry during that time.