FMCG Market Research Reports Reports, Analysis & Trends
The FMCG industry is undergoing a critical transformation in response to the demand for more convenience for accessing services and changes in customer behavior. Prominent FMCG market trends involve formulation of sustainable solutions for packaging and product development, implementing digitalization, and enhancing customer experience. Since the last two decades, FMCG companies are extensively deploying big data analytics and artificial intelligence (AI) solutions, along with adopting omnichannel sales and e-commerce to gain a competitive edge in the industry. Furthermore, the FMCG market size is expected to rise significantly in the forthcoming years in view of the growing emphasis on manu Read More...The FMCG industry is undergoing a critical transformation in response to the demand for more convenience for accessing services and changes in customer behavior. Prominent FMCG market trends involve formulation of sustainable solutions for packaging and product development, implementing digitalization, and enhancing customer experience. Since the last two decades, FMCG companies are extensively deploying big data analytics and artificial intelligence (AI) solutions, along with adopting omnichannel sales and e-commerce to gain a competitive edge in the industry. Furthermore, the FMCG market size is expected to rise significantly in the forthcoming years in view of the growing emphasis on manufacturing healthier products, and promising development of the e-commerce industry globally. Retail e-commerce sales in the world were more than USD 2,200 billion in 2017, increasing up to USD 2700 billion in 2,018. Along with these, with the rising penetration of smartphones, millennial consumers these days are becoming more interested in seeking out brands with innovative product lines. Approximately 1.4 billion units of smartphones were sold to users on a global level in 2020. This is expected to increase the scope for smaller brands that resonate with these consumers online. Shifting consumer demographics is also predicted to result in the emergence of small towns and mid-density cities as new FMCG markets. High population densities in rural and semi-urban areas coupled with surging urbanization is leading to more people in these regions with access to technology, and thus develop same consumer patterns as their urban counterparts. This is a crucial factor projected to offer abundant growth prospects to the industry in the near future. Additionally, developing economies of Asian countries such as Indonesia, Thailand, India and Vietnam are observing a slew in the number of consumers willing to spend more cash resulting from rising disposable incomes. The disposable income per capita in Indonesia was reported at approximately USD 2,890 in 2018, up from USD 2,880 in 2017. The recent FMCG industry analysis shows that moving consumer goods markets in developing nations are growing 2 to 4 times more than in developed countries. Additionally, the future of this sector is also assessed to be driven by high penetration of smartphones globally, with the focus of companies towards providing a more digitized e-commerce approach. However, lack of efficiency in dealing with the product selling scenario effectively is considered to pose a major hindrance to the industry growth.
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