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FMCG Market Is Becoming a Global Phenomenon, Expected To Grow 5.4% by 2025 | Procter and Gamble, Unilever Group, The Coca-Cola Company
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Fast moving consumer goods (FMCG) is the largest combination of consumer goods with different product categories that include home, health, and personal care and food & drinks including its marketing, production, and distribution. The personal care segment is anticipated to witness substantial growth owing to the rise in disposable income of consumers, thus enabling them to spend considerable amount on luxury personal care products.
Other factors such as surge in trend of online shopping, R&D for the new brands & products, and expansion of FMCG network in rural areas of the developing countries are expected to open new avenues for the FMCG market players in the future. However, high competition among major market players and retail execution are expected to hamper the global FMCG market growth. In the recent decade, there is a trend that consumers are more concerned about their health and personal hygiene, thus preferring hygienic lifestyle.
Consumers choose their daily need products according to their hygienic compatibility and thus change their purchasing decisions according to their lifestyle. This trend is becoming opportunities for the FMCG market. Companies are offering the products, which are compatible to the lifestyle of their targeted consumer segment.
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The personal care segment is expected to grow comparatively faster than other FMCG types, witnessing a CAGR of 6.0%. The food and beverage segment in the FMCG market is driven by rise in disposable income, cross cultural interaction, and increase in population. The trend of healthy eating has been a top impacting factor affecting the growth of the food & beverage market.
Key Findings of the FMCG Market:
In 2017, based on type, the food & beverages segment accounted for around 89% of global FMCG market share, growing at a CAGR of 5.3% from 2018 to 2025.
In 2017, based on type, the healthcare segment accounted for 4% share of the global FMCG market and is expected to growth at the highest CAGR of 8.5%.
Personal care segment has occupied around 5% share of the market share and is expected to growth at the highest CAGR of 6.0%.
In 2017, based on distribution channel, the supermarkets & hypermarkets segment accounted for more than half of the market share of global FMCG market and is projected to grow at the highest CAGR of 5.8% during the forecast period.
In 2017, based on region, the FMCG market was dominated by North America, particularly the U.S., followed by Canada as the major market, while Asia-Pacific was dominated by developing countries such as China and India, with nearly 40% market share in 2017. In addition, LAMEA is expected to witness a 6.6% CAGR during the forecast period.
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The key players operating in the global FMCG industry include Procter and Gamble, Unilever Group, The Coca-Cola Company, Pepsi Co, Inc., Kimberly-Clark Corporation, Patanjali Ayurved Ltd., Dr. Pepper Snapple Group, Inc., Revlon, Inc., Johnson & Johnson (J&J), and Nestle S.A.
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