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    Fast Moving Consumer Goods Market

    ID: MRFR/CR/10445-CR
    128 Pages
    Snehal Singh
    December 2024

    Fast-moving consumer goods Market Research Report: Information by Type (Food & Beverages, Tobacco Products, Beauty & Personal Care, Healthcare, Home Care, Electronics, Office Supplies), Production Type (Inhouse, Contract Based), Distribution Channel (Store Based, Non-Store Based) Forecast Till 2035

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    Fast Moving Consumer Goods Market Summary

    As per Market Research Future Analysis, the Global Fast-Moving Consumer Goods (FMCG) Market was valued at Euro 10,703.32 Bn in 2023 and is projected to reach Euro 19,032.31 Bn by 2032, growing at a CAGR of 6.7% from 2024 to 2032. The market is driven by the growth of the organized retail sector, rising middle-class populations, and increased digitalization in rural markets. However, challenges such as counterfeit goods and a shift towards sustainability are impacting growth. E-commerce penetration and favorable government policies are creating opportunities for market players.

    Key Market Trends & Highlights

    Key trends influencing the FMCG market include:

    • Rising demand for health and wellness products as consumers prioritize nutrition and sustainability.
    • E-commerce growth, with over 40% of UK consumers preferring online grocery shopping post-pandemic.
    • Increasing internet penetration in rural markets, particularly in India, with 399 million users in 2021.
    • Shift towards eco-friendly packaging and convenience foods due to busy lifestyles.

    Market Size & Forecast

    2023 Market Size Euro 10,703.32 Bn
    2032 Market Size Euro 19,032.31 Bn
    CAGR (2024-2032) 6.7%

    Major Players

    Key players in the FMCG market include Nestle SA, PepsiCo Inc, Coca Cola, Unilever, Tyson Foods, Procter & Gamble, JBS, and Kraft Heinz.

    Fast Moving Consumer Goods Market Trends

    The global fast moving consumer goods (FMCG) market is expected to grow at a rate of 6.60% during the forecast period and is attributed to the growth of the organized retail sector in the Asia-Pacific region coupled with rising middle-class across the globe. In addition, the trend of digitalization in the rural markets is affecting the growth of the market positively. However, the rise of counterfeit and fake goods presence in the market and the shift in consumer preference towards sustainability is hampering the growth of the market during the forecast period.

    Nevertheless, the strong penetration of the e-commerce channel is expected to create lucrative opportunities for the players in the market. Also, the favorable government policies in key economies are providing a conducive environment for global manufacturers to expand and strengthen their position in the market. Region-specific government regulations and stringent tax regimes are posing challenges for the players in the market.

    Over the years with the advent of technology, the accessibility and affordability of the smartphone and the internet have increased and reached the nooks and corners of the globe including the rural markets, especially in developing countries including India, Kenya, Ghana, etc. India, one of the key potential markets in the FMCG market and whose rural market has a significant share in the FMCG product sales has around 399 million internet users in rural parts of India in 2021 which is 14% more than the preceding year.

    This number is expected to grow further and strongly in the upcoming years.  With rural India accounting for over 35% of the total FMCG revenue generated in India, the deep penetration of the Internet is paving new ways and opportunities for manufacturers.

    The fast-moving consumer goods (FMCG) market is experiencing significant transformation driven by changing consumer behaviors and preferences. Key trends include the rising demand for health and wellness products, as consumers increasingly prioritize nutrition and sustainability. E-commerce continues to grow, making online shopping a vital channel for FMCG brands. There is also a shift towards eco-friendly packaging and sustainable sourcing, reflecting heightened environmental awareness. Additionally, convenience and ready-to-eat meals are gaining popularity due to busy lifestyles. Brands that leverage technology, like personalized marketing and data analytics, are better positioned to meet evolving consumer needs in this dynamic market.

    The Global Fast Moving Consumer Goods Market is poised for dynamic growth, driven by evolving consumer preferences and the increasing demand for convenience and sustainability in everyday products.

    U.S. Department of Commerce

    Fast Moving Consumer Goods Market Drivers

    Rising Urbanization

    The Global Fast Moving Consumer Goods Market Industry is experiencing a notable surge due to the rapid urbanization occurring worldwide. As more individuals migrate to urban areas, the demand for convenience products increases. Urban consumers tend to favor ready-to-eat meals, personal care items, and household goods, which are characteristic of the fast-moving consumer goods sector. In 2024, the market is valued at approximately 335 USD Billion, reflecting the growing purchasing power and changing lifestyles of urban populations. This trend is expected to continue, with urbanization projected to drive further growth in the sector.

    Market Segment Insights

    Global Fast-moving consumer goods Segment Insights

    Global Market Type Insights

    Based on type, the global fast moving consumer goods market has been segmented into food & beverages, tobacco & tobacco products, beauty & personal care, healthcare, home care, electronic and office supplies.

    The food and beverages segment are further bifurcated into food, confectionary, beer, liquors & spirits, wine, softdrinks, other beverages, cereals, grains and wheat. The growing population across various regions of the world is likely to increase the demand of various food and beverages products which in turn would boost its market growth in the upcoming years. As a part of this, according to the Food and Agriculture Organization, between 2009 and 2050, the world's population is projected to increase by more than a third, or 2.3 billion people.

    This is a considerably slower with 3.3 billion people, or more than 90% of its current population, were added during the previous 40 years of expansion. According to projections, developing nations will see almost all this expansion. Sub-Saharan Africa will experience the largest population growth among the latter group (+114%), while East and Southeast Asia would experience the slowest (+13%). Urban areas are expected to account for 70 percent of the world's population in 2050 (up from 49 percent now), whereas rural populations are predicted to decline after reaching a peak somewhere in the next decade.

    According to predictions, increasing global food production by almost 70% between 2005–2007 and 2050 will be necessary to feed the 9.1 billion people who will inhabit the planet by then. It would be necessary for production in the developing world to almost treble. This indicates that production of several important commodities will rise significantly. For example, annual beef production would need to increase by nearly 200 million tons to reach 470 million tons in 2050, with 72 percent of that total going to developing nations, up from the current 58 percent.

    Producing the types of foods that are deficient would also be necessary to sufficiently feed the world's population and assure nutritional security.

    Global Market Production Type Insights

    The Fast-moving consumer goods Market based on production type has been segmented into inhouse and contract based. The inhouse segment accounted for the highest market share of 41.96% in 2022 owing to the growing adoption of inhouse manufacturing among the manufacturers and is expected to register a CAGR of 5.73% during the forecast period 2023-2030. However, the contract-based segment is expected to grow at a CAGR of 7.21% during the forecast period.

    Inhouse refers to the idea of reclaiming techniques and processes that were previously outsourced. It is the reverse of outsourcing, which has historically been employed to minimize costs or when a business lacks the resources (usually employees, machinery, technologies, or other skills) necessary for a particular task. Moreover, the growing benefits possessed by inhouse production has increased manufacturers’ inclination towards it, which in turn is a vital factor boosting its market growth. As a part of this, smaller businesses, especially those with a unique product value proposition, greatly benefit from the capacity to customize.

    In-house manufacturing makes it possible to fulfil client requests for customized products more quickly than outsourcing, which requires that customizations go through several channels and procedures. Another advantage is that a study from Karlsruhe University of Applied Sciences indicated that widespread outsourcing of industrial processes has a significant negative influence on a company's profit and productivity, contrary to conventional belief that outsourcing is always less expensive. In-house production is frequently a more economical option, particularly for companies that produce small numbers of highly customized products.

    This is because there are fewer steps in the production process between the wallet and the final product.

    Moreover, the presence of major players adopting inhouse production is set to boost its market growth in the upcoming years. As a part of this, in April 2021, Unilever expanded the number of its global digital marketing centers to enhance its internal capabilities. These hubs were developed to promote communication amongst experts in audience analytics activation, online engagement, performance marketing, content management, and data governance.

    Fast-moving consumer goods Market Distribution Channel Insights

    Contract based manufacturing is when a manufacturer contracts with another business to produce certain parts or goods over a predetermined timeframe. A company may enter a commercial relationship with a contract manufacturer—which is regarded as a form of outsourcing—to produce parts, components, or full products for the company in accordance with their specifications. Following that, the corporation either completes its own product or uses the manufactured goods in its own production process. Contract manufacturers are typically autonomous businesses that exclusively subcontract with or sell their products to other businesses or governmental organizations.

    Although in-house production offers various types of advantages, contract-based production also offers various benefits. For example, a company can save its own manufacturing time by using a contract manufacturer to produce only particular parts or components to support their own production line. This results in quicker time to market, better delivery, and better customer service.

    Contract manufacturing enables companies to maintain reliable production of high-quality goods. By establishing that standard, the company can increase brand recognition and earn a reputation as a trustworthy distributor. Better business relationships with possible collaborators and future contractors may result from this as well. However, some of the drawbacks associated with contract-based manufacturing includes limited control. As a part of this, there are features and requirements that the hiring company wants in a product. Up until the product is given up for review, the company has very little influence once those desires have been expressed.

    The manufacturing and production of the product are mostly outside the client's control. Contrarily, the contract manufacturer often has little to no influence over the design of the product. Although the contractor is permitted to offer suggestions, there is no assurance that they will be accepted.

    Store-based distribution channel usually includes supermarkets & hypermarkets, specialty stores, departmental stores and many more. A supermarket and hypermarket are usually a large retail space where products are displayed so that customers can choose what they want. Customers always fill a trolley from the shelf with what they desire, then have the counter clerk charge their credit card. The expanding advantages that supermarkets and hypermarkets have, like operating on a self-service basis, providing a variety of goods discounts accessible on various commodities, giving customers freedom of choice, and making significant profits, are expected to drive the market's expansion.

    Fast-moving consumer goods Market Region Insights

    Europe market value is expected to be Euro 2,698.2 billion in 2022 and Euro 4,004.2 billion in 2030 growing at a CAGR of 5.12% during the forecast period. Europe basically includes Germany, France, Italy, Spain, UK and Rest of Europe are all included in the analysis of the European market. Europe continues to hold a significant share in the global fast moving consumer goods market, owing to the increasing initiatives taken by key players to expand the production of various beverages across the region which in turn would boost its market growth.

    As a part of this, in June 2023, Carlsberg Group invested in Ukraine to upgrade The Kyiv Brewery's production line to enhance the yield capacity of canned goods by 80%. One of the company's biggest investment initiatives for the year is represented by the action. The newly created production line will be used to produce products for a variety of brands, including Lvivske, Carlsberg, Kronenbourg 1664, Arsenal, Kvas Taras, Somersby, Seth & Riley's Garage, Staropramen, Miller Genuine Draught and Battery. Cider, energy drinks, soft drinks, and beer (alcoholic and non-alcoholic) are popular goods being bottled.

    At a time when Ukraine is engaged in a protracted conflict with Russia, the investment represents a major player's confidence in the nation. The Carlsberg Group committed to invest 1.5 billion hryvnias, or €40 million (US$44 million), in Ukraine this year.

    Besides this, the increasing policies adopted by major government bodies operating across the region to strengthen the wine sector is likely to fuel its market growth in the upcoming years. As a part of this, the wine industry is supported at the EU level through wine assistance schemes in EU nations that produce wine. An annual budget of €1 061 million from EU funding is set aside to support the sector's investments, innovations, product promotion, restructuring, and harvest insurance. The wine support initiatives are part of the strategic plans for the current CAP.

    The budget for the wine industry will remain unchanged from the previous framework, and all currently eligible measures will be maintained. However, the goals and interventions to support a more sustainable wine sector will be strengthened, with at least 5% of the expenditure to be devoted to such goals.

    Get more detailed insights about Fast Moving Consumer Goods (FMCG) Market Research Report—Global Forecast till 2032

    Key Players and Competitive Insights

    The global fast moving consumer goods market is projected to register a CAGR of 6.60% during the review period. The market's growth can be attributed to the rising demand from the food and beverages industry. Market players are expected to witness profitable growth opportunities in the global market due to the increasing demand of fast moving consumer goods from global consumers in the market.

    The FMCG has remained heavily fragmented with tier-1 players accounting for less than one-fourth of the market and market continues to see newer entrants continuing to try and consume a revenue pie from the ever growing FMCG industry. The key players operating in the global fast moving consumer goods market include Nestle SA, PepsiCo Inc, Coca Cola, Unilever, Tyson Foods, P & G, JBS, Kraft Heinz. The tier-1 players have a global reach and diverse product portfolios.

    Nestle SA, PepsiCo Inc, Coca Cola, Unilever are some of the players dominating the global market due to brand reputation, product differentiation, financial stability, and diversified regional presence. The market players are focused on investing in research & development and adopting strategic growth initiatives such as product launches, joint ventures, patent approval, acquisition, expansion, certifications, partnerships, and investment to strengthen their market position and capture a large customer base.

    Key Companies in the Fast Moving Consumer Goods Market market include

    Future Outlook

    Fast Moving Consumer Goods Market Future Outlook

    The Global Fast Moving Consumer Goods Market is projected to grow at a 4.61% CAGR from 2024 to 2035, driven by e-commerce expansion, sustainability trends, and consumer health consciousness.

    New opportunities lie in:

    • Leverage e-commerce platforms to enhance direct-to-consumer sales channels.
    • Invest in sustainable packaging solutions to meet eco-conscious consumer demands.
    • Develop health-oriented product lines to cater to the growing wellness trend.

    By 2035, the market is expected to exhibit robust growth, reflecting evolving consumer preferences and innovative strategies.

    Market Segmentation

    Fast-moving consumer goods (FMCG) Type Outlook (Bn Euro, 2018-2032)

    • Food
    • Confectionary
    • Beers
    • Liquors & Spirits
    • Wine
    • Softdrinks
    • Other Beverages

    Fast-moving consumer goods (FMCG) Production Type Outlook (Bn Euro, 2018-2032)

    • Inhouse
    • Contract Based

    Fast-moving consumer goods (FMCG) Distribution channel Outlook (Bn Euro, 2018-2032)

    • Store-Based
    • Non-Store Based

    Report Scope

    Report Attribute/Metric Details
    Market Size 2023 Euro 10,703.32 Bn
    Market Size 2032 Euro 19,032.31 Bn
    Compound Annual Growth Rate (CAGR) 6.7 %.  (2024-2032)
    Base Year 2023
    Forecast Period 2024-2032
    Historical Data 2018 -2022
    Forecast Units Value (USD Million)
    Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    Segments Covered Type, Production Type, Distribution Channel, Region
    Countries Covered Global
    Key Companies Profiled Nestle SA, PepsiCo Inc, Coca Cola, Unilever, Tyson Foods, P & G, JBS, Kraft Heinz.
    Key Market Opportunities ·       Eco-friendly products attract environmentally conscious consumers. ·       Health trends open avenues for organic and functional foods.
    Key Market Dynamics ·       Urbanization boosts demand for convenient products. ·       E-commerce growth expands market access for FMCGs.

    Market Highlights

    Author
    Snehal Singh
    Assistant Manager - Research

    High acumen in analyzing complex macro & micro markets with more than 6 years of work experience in the field of market research. By implementing her analytical skills in forecasting and estimation into market research reports, she has expertise in Packaging, Construction, and Equipment domains. She handles a team size of 20-25 resources and ensures smooth running of the projects, associated marketing activities, and client servicing.

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    FAQs

    How much is Global Fast-moving consumer goods in 2023?

    Global Fast-moving consumer goods accounted for Euro 10,703.32 Bn

    What is the growth rate of Global Fast-moving consumer goods?

    The growth rate of Global Fast-moving consumer goods is 6.7%. % CAGR.

    Who are the key players in Global Fast-moving consumer goods?

    Mondelēz International, Inc., Mars Incorporated, The Walt Disney Company, The Coca-Cola Nestle SA, PepsiCo Inc, Coca Cola, Unilever, Tyson Foods, P & G, JBS, Kraft Heinz.

    Which Category led the Global Fast-moving consumer goods?

    Food & Beverages led Global Fast-moving consumer goods.

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