FMCGs, also known as Fast-Moving Consumer Goods or Consumer Packaged Goods are products which are sold quickly and at a relatively low cost. It is one of the fastest moving sectors especially in India as it is the fourth largest sector in India with household and personal care accounting for more than 50% of sales in India. Here, in this blog, we have covered all the major trends and careers of FMCG in 2022.
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This Blog Includes:
- What are Fast-Moving Consumer Goods (FMCG)?
- Types of Fast-Moving Consumer Goods
- Examples of Fast-Moving Consumer Goods
- FMCG Trends in 2022
- Utilising Technology
- Environment Awareness
- FMCG Careers in 2022
- What Are Some of the Largest Fast-Moving Consumer Goods Companies?
- FMCG Market in India
What are Fast-Moving Consumer Goods (FMCG)?
FMCG items, also known as fast-moving consumer goods, are non-durable commodities that must be sold, generally at a cheap cost, and used within a specific time frame. Because FMCG items are perishable and in great demand, they are manufactured and sold in enormous numbers. Processed, baked, frozen, and fresh food, drinks and confectionary, toiletries, over-the-counter pharmaceuticals, and other items are examples of these things.
Types of Fast-Moving Consumer Goods
FMCGs can be divided into several different categories, including:
- Processed foods: Cheese products, cereals, and boxed pasta
- Prepared meals: Ready-to-eat meals
- Beverages: Bottled water, energy drinks, and juices
- Baked goods: Cookies, croissants, and bagels
- Fresh foods, frozen foods, and dry goods: Fruits, vegetables, frozen peas and carrots, and raisins and nuts
- Medicines: Aspirin, pain relievers, and other medication that can be purchased without a prescription
- Cleaning products: Baking soda, oven cleaner, and window and glass cleaner
- Cosmetics and toiletries: Haircare products, concealers, toothpaste, and soap
- Office supplies: Pens, pencils, and markers
Examples of Fast-Moving Consumer Goods
Packaged food, toiletries, drinks, stationery, over-the-counter pharmaceuticals, cleaning and laundry products, plastic items, personal care products, and less priced consumer electronics such as mobile phones and headphones are examples of fast-moving consumer goods.
Some fast-moving consumer commodities, such as meat, dairy products, baked goods, fruits, and vegetables, are very perishable. FMCG sales are typically influenced by shop promotions, as well as holidays and other seasonal occasions.
FMCG Trends in 2022
Let’s explore the most popular FMCG trends in 2022:
Prioritizing of Health is becoming the Ultimate Consumer’s Preference
One of the major trends that have already started happening is consumers prioritizing their health. The pandemic has started a debate about immunity and thus the consumer’s focus has shifted to food items that are more beneficial for their health. Although low-sodium, sugar-free products have been in the market for decades but were only sold at special healthcare stores, it is only now that they have made their way into our regular supermarkets as the demand for them has expanded rapidly. Products like soy milk and alcohol-free mocktails are gaining wider acceptance and availability. Thus, this is a trend which is likely to only increase in 2022.
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As people’s lives keep getting busier, it all comes down to one thing i.e. convenience. People want more convenience in their life especially when it comes to getting their meals which is why food delivery giants like Uber Eats, Zomato etc have gained popularity as well. FMCG markets are responding to the desired convenience in the best way possible. For eg.- ready to eat meal options are becoming more popular especially among all the millenials just for the sake of convenience.
Consumers Look for an Experience
The FMCG sector has realised that consumers look for an experience rather than the actual product i.e. how the product makes them feel what they experience with that product. This is why major industry players of the FMCG sector are looking to create an experience around their products and encourage sharing among consumers by investing to enable a better sense of personalized communication through social media and community management.
FMCG makers are launching more products which encourage consumers to share their experiences online and generate conversation with their peers to get a better return on investments in marketing.
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Technology is the most powerful tool in today’s time and efficient utilisation of technology can do wonders for a business. Technology, as a trend has been in the market for quite a long time now and it is here to stay only. As technology continues to evolve, there are many avenues, these brands can take to stay ahead of the game.
Consumers are spending most of their time online and businesses need to figure out a way to create their identity digitally in order to scale up their brand. The use of data can help a brand to understand how their customers interact with them at present, and how they can utilise consumer insights to work in their favour.
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Consumers have started becoming more aware of the negative impact of FMCG production and its byproducts. Brands are under pressure to simplify messaging and deliver unambiguous information. It is not just the product itself, but how the product is packaged and labelled that will impact consumer choices as more and more consumers opt for plastic-free solutions. Organic products or local products have started catching the eye of the consumer and are getting more attention due to the sole reason for its impact on the environment.
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FMCG Careers in 2022
As explained above, FMCG is one of the biggest sectors in the world which creates millions of jobs directly or indirectly. Due to the smooth availability of raw material and the high number of consumers, India acts as a major destination for such companies and attracts them from all around the world. The pandemic disrupted the growth of the FMCG sector this year due to the nationwide lockdown and name on the production of goods other than essential services. However, the demand has started increasing after the nation opened up and the food industry witnessed growth. The big companies state that the worst is hopefully behind us and they are looking towards an optimistic recovery. However, instead of all this, the FMCG sector is assumed to increase substantially next year which will eventually lead to more job creation.
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As more and more single and multi-brand retailers are queuing up ahead for the government to invest in this sector, hiring will shoot up in this sector. According to several reports, the private sector food firms can create up to 7,00,000 jobs.
As the consumers become more global in their aspirations and desire, their appetite to consume products is only increasing. In order to meet this demand, companies have to invest in R&D and at the same time, the product life cycle is shrinking and companies are continuously launching new products. Due to all these reasons FMCG companies recruit people at all levels including freshers from B-schools.
What Are Some of the Largest Fast-Moving Consumer Goods Companies?
Nestlé, Procter & Gamble, and Coca-Cola are among the world’s leading manufacturers of fast-moving consumer products. Nestlé, established in Switzerland, for example, has over 2,000 trademarks ranging from vitamins to frozen meals. 2 Importantly, competition for market share is fierce in the fast-paced consumer products business. As a result, firms place a premium on packaging not just to attract customers, but also to maintain the product’s shelf life and integrity.
FMCG Market in India
From US$ 110 billion in 2020, the FMCG market in India is predicted to grow at a CAGR of 14.9 percent to reach US$ 220 billion by 2025. Despite statewide lockdowns, the Indian FMCG business increased by 16% in CY21, a 9-year high, driven by consumption-led growth and value expansion from higher product pricing, notably for basics. The rural market increased by 14.6 percent in the same quarter, whereas metro markets increased after two-quarters of negative growth. During the period 2015-20, final consumer expenditure climbed at a CAGR of 5.2 percent. According to Fitch Solutions, real household expenditure is expected to grow 9.1 percent year on year in 2021, after shrinking more than 9.3 percent in 2020 as a result of the pandemic’s economic impact. According to CRISIL Ratings, revenue growth in the FMCG industry would double from 5-6 percent in FY21 to 10-12 percent in FY22. Price increases across product categories will counteract the impact of increased raw material prices, which are driving growth, combined with volume growth and a recovery in demand for discretionary products. Despite lockdowns in several sections of the nation, the FMCG industry rose by 36.9 percent in the April-June quarter of 2021.
We hope that this blog helped you gain valuable insights about the FMCG trends and careers in 2022. Stay tuned to Leverage Edu for more such informational content on careers and education!