The global FMCG market is projected to reach $ 15,361.8 billion by 2025, at CAGR of 5.4 percent from 2018-2025, as per a Valuates Report titled ‘Global Opportunity Analysis and Industry Forecast, 2018 – 2025’
The FMCG market in India grew 10 percent year-on-year (YoY) in January 2022, largely due to increased grocery and essentials consumption during the third COVID-19 wave in the country, The Economic Times reported.
Sale of electronic products such as fridges, smartphones and TVs grew at double digit pace in January despite ‘initial hiccups’, the report, based on data from Bizom, said.
As per Bizom, which tracks data from 7.5 million stores, commodity products grew 43 percent and packaged foods grew 38 percent, while sale of home and personal care products declined.
Akshay D’Souza, chief of growth and insights at Mobisy Technologies, which owns Bizom said there was “significantly lower impact on month-on-month sales” compared to earlier waves, adding: “Commodity products continue to grow sales despite an easing of prices for key products like edible oils, indicating strong consumption.”
Top executives concur and said that restricted store timings and mobility impact on businesses during the third Omicron wave is “unlike” the first two coronavirus waves.
Global Scene
The global FMCG market is projected to reach $ 15,361.8 billion by 2025, at CAGR of 5.4 percent from 2018-2025, as per a Valuates Report titled ‘Global Opportunity Analysis and Industry Forecast, 2018 – 2025’.
The report segments the global FMCG market by type (food and beverage, personal care, health care, and home care) and distribution channel (supermarkets and hypermarkets, grocery stores, specialty stores, e-commerce, and others)
Major factors driving the growth and expected to create “lucrative growth opportunity” are:
— Rise in disposable income
— Increase in consumer demand for sustainable products
— Easy availability of products
— Technological advancements that have enabled retailers to understand buying patterns and consumer needs.
Trends influencing the global FMCG market:
— Growing global population coupled with rising disposable income.
— Fact that these goods are essential and consumed in daily life
— These goods are frequently sold at supermarkets, hypermarkets, grocery stores, online stores, and other retail outlets
— Promotion of sustainable products is expected to further drive growth
— Consumer concern about climate and environment is expected to result in manufacturers delivering desired goods in reusable/recyclable packaging
— With sustainable plant-based diet gaining popularity around the world – one in three products in market are now vegan.
— Energy efficiency being adopted by FMCG goods brands
— Use of big-data analytics to understanding of customer needs
— Use of big data for inventory optimisation, forecast optimisation, supply chain analytics, and price and promotion analytics.
— Investment in packaging technology advancements to boost sales
— Introduction of new products at competitive prices
— Improvement of existing products to boost target market growth over forecast period.
Market share analysis
Based on type: Food and beverage is expected to hold the largest market share during the forecast period, with trend of healthy eating expected to make a “significant impact on growth”.
Based on the distribution channel: Supermarkets and hypermarkets segment are expected to hold the largest market share during the forecast period, where rise in disposable income and demand for a one-stop solution for all shopping needs will drive growth.
Based on region: North America is expected to remain dominant and grow at a steady rate. Lifestyle changes due to globalisation will however see Asia-Pacific grow at the fastest rate of 8.0 percent.
Key market players: The Coca-cola Company, Dr Pepper Snapple Group, Inc., Johnson & Johnson, Kimberly-clark Corporation, Nestle, Patanjali Ayurved, Pepsico, Inc., Procter And Gamble, Revlon, Inc., and Unilever Group.
