NEW YORK, Feb. 2, 2025 /PRNewswire/ -- Report with market evolution powered by AI - The global FMCG market  size is estimated to grow by USD 456.6 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  3.27%  during the forecast period. Growing preference for e-commerce online distribution is driving market growth, with a trend towards rising consumption of ready-to-eat food products. However, lack of proper infrastructure in emerging economies  poses a challenge. Key market players include Anheuser Busch InBev SA NV, Dabur India Ltd., Heineken NV, ITC Ltd., JBS SA, Johnson and Johnson Services Inc., Kellogg Co., Keurig Dr Pepper Inc., Kimberly Clark Corp., LOreal SA, Mondelez International Inc., Nestle SA, Patanjali Ayurved Ltd., PepsiCo Inc., Tata Sons Pvt. Ltd., The Coca Cola Co., The Kraft Heinz Co., The Procter and Gamble Co., The Wadia Group, and Unilever PLC.

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Key Market Trends Fueling Growth

The Fast-Moving Consumer Goods (FMCG) market is witnessing significant trends in various sectors. Food and Beverages, Healthcare, Toiletries, Oral Hygiene, Detergents, Cosmetics, and Home Care continue to dominate the market. Changing lifestyles, urbanization, and economic progress drive demand. Middle-class population growth fuels sales of Packaged Foods, Urban sector consumption of Consumer Electronics, and Pet Care. Inflation and raw material prices impact profitability. Counterfeiting is a concern for FMCG networks, especially in semi-urban and rural areas. Sustainable shopping, health consciousness, and lifestyle changes influence consumer behavior. Online purchasing via e-commerce platforms and third-party websites is on the rise. Supermarkets, hypermarkets, and grocery stores compete in price wars. Smartphone users leverage mobile apps for discounts and subscription services. Modern retail formats include supermarkets, hypermarkets, specialty stores, convenience stores, food malls, and company-owned websites. 

The FMCG market is experiencing significant growth in the ready-to-cook and ready-to-eat food product segment. This trend is driven by the increasing number of dual-income households and busy lifestyles. Convenience and time-saving features are key factors fueling this demand. For instance, processed foods accounted for approximately 70% of the American diet in 2022, according to Standard Process Inc. Research. During the 2020 pandemic, there was a notable in demand for ready-to-eat food products, with Blinkit, an Indian online grocery store, reporting a 17% increase in sales in this category, along with a 31% rise in readymade meals and mixes, and a 41% increase in frozen food sales. These figures underscore the shift towards ready-to-eat food products. 

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Market Challenges

• The Fast-Moving Consumer Goods (FMCG) market encompasses various sectors including Food and Beverages, Healthcare, Toiletries, Oral Hygiene Products, Detergents, Cosmetics, Home Care, and Packaged Foods. Challenges in this industry include changing lifestyles, urbanization, and economic progress leading to a larger middle-class population. Inflation and raw material prices pose significant hurdles. Counterfeiting of products is a major concern for FMCG brands, especially in semi-urban and rural areas. Consumers are increasingly opting for sustainable and healthier options, driving demand for eco-friendly and natural products. Urban sectors lead the way in online purchasing through e-commerce platforms and supermarkets/hypermarkets. Rural areas and offline retail stores continue to be important channels. Price wars, discounts, and subscription services are common strategies to attract consumers. The rise of smartphone usage has led to increased online shopping and the popularity of mobile apps. FMCG networks face competition from third-party websites and company-owned websites. Brands must adapt to modern retail formats and cater to health-conscious consumers, dual-income families, and the growing pet care market.
• The demand for Fast-Moving Consumer Goods (FMCG) products is experiencing significant growth in emerging economies, particularly in the Asia Pacific (APAC) region. This expansion is driven by several factors, including improving economic conditions, urbanization, and increasing health consciousness. The food processing industry's expansion in APAC further boosts FMCG product demand during the forecast period. However, challenges persist in providing adequate infrastructure for storing and manufacturing essential food processing ingredients such as preservatives, emulsifiers, enzymes, and others. Proper handling and care, including maintaining specific temperatures and preventing contamination, are crucial to preserve these ingredients' chemical compositions.

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Segment Overview 

This fmcg market report extensively covers market segmentation by

• Type
• • Food And Beverage
  • Personal And Beauty Care
  • Health And Hygiene Care
  • Home Care
• Geography
• • APAC
  • North America
  • Europe
  • Middle East And Africa
  • South America

1.1 Food and beverage-  The food and beverage segment experienced significant growth in the global FMCG market in 2023. This expansion was driven by the increasing demand for packaged and processed foods in both developed and developing countries. Improved economic conditions and rising disposable income levels have fueled this trend. Manufacturers of processed foods are focusing on product differentiation to stay competitive. The popularity of packaged and frozen foods among urbanized populations, due to changing dietary habits and convenience, is a major factor. Long shelf life is a key selling point for frozen food makers, leading to the development of new techniques to extend product life. The expanding global middle class and increasing number of working women are also contributing to the growth of this segment.

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Research Analysis

The Fast-Moving Consumer Goods (FMCG) market is a dynamic and ever-evolving industry that caters to a wide range of consumer needs. It includes sectors such as Food and Beverages, Healthcare, Toiletries, Oral Hygiene Products, Detergents, Cosmetics, and Home Care. With changing lifestyles and increasing health consciousness, there is a growing demand for packaged foods, cleansing products, and green alternatives. The middle-class population's purchasing power has led to an increase in demand for these products. Dual-income families and health-conscious consumers are driving the growth of the Healthcare and Oral Hygiene Product segments. E-commerce and online shopping have disrupted traditional FMCG distribution networks, making it easier for consumers to access a wide range of products from the comfort of their homes. However, this has also led to the proliferation of counterfeit brands, posing a significant challenge for authentic FMCG companies. FMCG networks are adapting to these changes by investing in digital marketing and omnichannel distribution strategies. Overall, the FMCG market is expected to continue its growth trajectory, driven by changing consumer preferences and lifestyles.

Market Research Overview

The FMCG (Fast-Moving Consumer Goods) market encompasses a wide range of products including Food and Beverages, Healthcare, Toiletries, Oral Hygiene Products, Detergents, Cosmetics, and more. The market is driven by various factors such as changing lifestyles, economic progress, and the growing middle-class population. Urban sectors and semi-urban and rural areas are witnessing significant growth in FMCG consumption. Inflation and raw materials prices pose challenges, while sustainability and e-commerce are shaping the future of shopping. Consumers are increasingly opting for online purchasing through e-commerce platforms, supermarkets, and hypermarkets, as well as third-party websites and company-owned websites. The rise of smartphone users and discounts further boosts online sales. Counterfeiting of products remains a concern, but consumers are becoming more aware of sustainable and natural alternatives, including plant-based options and skincare products. Modern retail formats, such as convenience stores, retail stores, food malls, and specialty stores, are also gaining popularity. Price wars among FMCG networks and competition from various retail channels continue to shape the market landscape.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Type
• • Food And Beverage
  • Personal And Beauty Care
  • Health And Hygiene Care
  • Home Care
• Geography
• • APAC
  • North America
  • Europe
  • Middle East And Africa
  • South America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

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SOURCE Technavio