Maximizing fast moving consumer goods sales

Fast moving consumer goods (FMCG) are a diverse and quickly expanding sector within the CPG space. FMCG companies face the challenge of growing sales while navigating a competitive landscape. To succeed, they must stay ahead of market trends, adapt to shifting consumer preferences and leverage emerging technologies. Explore the strategies driving growth within fast moving consumer goods to succeed on shelf.

What is the fast moving consumer goods industry?

Products within the fast moving consumer goods industry sell quickly and at a relatively low cost. It is a competitive industry due to high sales volume and quick turnover of products on shelf. The FMCG industry relies on streamlined supply chains and organized distribution to meet consumer demands efficiently.

How do you define fast moving consumer goods?

Fast moving consumer goods are products in high demand that have a short shelf life because they sell quickly or are perishable. Typically, the FMCG category includes products such as:

• Packaged foods: items that are prepared processed or packaged to be more shelf stable, including candy and chocolate

• Beverages: soft drinks, bottled water and juices

• Dairy: yogurt, milk and cheese

• Meat: breakfast meats and deli meats

• Personal care and hygiene: toiletries, cosmetics and over-the-counter medications

• Vitamins and supplements: items that cater to health and wellness

• Household cleaning products: detergents and cleaning solutions

• Non-durable household goods: paper products, diapers and batteries

• Pet care: pet food and treats

• Tobacco and alcohol: tobacco, beer and liquor.

Most of these products are household essentials with low prices, except tobacco and alcohol.

Where are fast moving consumer goods sold?

Because there is a high demand for many FMCG categories, these products are found in various retail channels:

• Conventional grocery stores: Large-format stores offering a wide range of FMCG products

• Convenience stores: Small-format stores providing easy access to everyday essentials, often at a higher price than conventional stores

• Supermarkets and discount stores: Retailers offering fast moving consumer goods products at everyday low prices

• Online marketplaces: E-commerce platforms ranging from mobile grocery delivery apps to online retail stores

• Natural grocers: Shops focusing on specific categories like health foods or beauty products

• Specialty stores: Outlets focusing on specific categories like beauty products or pet care

• Drugstores: Chains and independently owned retailers, selling a variety of items, including personal care and over-the-counter medications

• Vending machines: Offering quick access to packaged foods and beverages in various on-the-go locations.

Fast moving consumer goods products may perform differently across various sales channels. To address this, many FMCG companies are adopting an omnichannel approach, seamlessly integrating their online and offline sales strategies.

What is the market share for fast moving consumer goods?

The FMCG sector continues to be a powerhouse in the global economy. Recent data projects the consumer goods market to reach a staggering $148.51 billion by 2031, expecting a compound annual growth rate (CAGR) of 3.66% between 2024 and 2031¹.

While that is the global outlook, market share for FMCGs varies widely by region and product category. In some markets, like North America, private-label brands are gaining traction as a result of households' budgets tightening and costs of goods rising. In many markets, global brands maintain a stronghold by adopting competitive pricing strategies, strong promotional calendars and deploying multimillion dollar advertising campaigns.

Fast-moving consumer goods sales by global market

The fast moving consumer goods market varies across regions:

• North America leads, thanks to advanced technology and brand-aware consumers⁴

• Europe maintains a significant market share, as the FMCG sector has expanded across many countries over the past few decades⁴

• The Asia-Pacific region offers significant growth opportunities, as more people move to urban areas and disposable incomes rise⁴

• Latin America demonstrates steady growth, especially in the personal care category, as governments improve healthcare infrastructure and allocate more funds to consumer healthcare spending⁴

• The Middle East and Africa show a lot of potential because of government initiatives to enhance healthcare systems⁴.

Across these regions, key market players are focusing on innovation, adapting products to fit local markets, strategic partnerships and expanding distribution networks to capitalize on regional opportunities and maintain their competitive edge in the global landscape⁴.

Harmonize and track retail data to increase FMCG sales

To determine which region and categories are growing or slowing in market share, it’s imperative for fast moving consumer goods to harmonize and track diverse retail data sets on a regular basis. Harnessing this data at scale allows companies to gain insights across regions into consumer behaviour, purchasing patterns and market trends. By analyzing this information, companies can:

• Identify emerging opportunities: Spotting growth trends in specific regions or product categories allows companies to allocate resources effectively and capitalize on new market opportunities

• Optimize promotional strategies: Regular monitoring of market data enables companies to adjust their promotional strategies in response to competitive behavior and changing consumer preferences

• Enhance supply chain efficiency: Insights from retail data can help to optimize inventory management and distribution strategies, increasing the likelihood products are available in high-demand areas

• Inform product innovation: Research and development teams can use market share data to reveal gaps in the market or spot declining product categories to guide research and development efforts for new product launches

• Adapt to local preferences: Understanding regional variations in consumer preferences helps to tailor products and marketing strategies to meet local needs

• Monitor competitors: Tracking a competitors' sales performance in different markets allows companies to pivot their strategy more quickly if needed.

Technology to maximize fast moving consumer goods sales

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