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The FMCG market size is estimated to grow by USD 456.6 billion at a CAGR of 3.27% between 2023 and 2028. The e-commerce sector has experienced significant growth, with online distribution becoming the preferred choice for consumers due to its convenience and accessibility. This trend is particularly noticeable in the pharmaceutical industry, where the rise in disposable income and a change in lifestyle have led to an increasing demand for prescription and over-the-counter medications. E-pharmacies offer customers the ability to order their medications from the comfort of their homes, often with the added benefit of discreet and confidential delivery. Additionally, e-pharmacies may offer competitive pricing and the ability to easily track orders and refills. The pharmaceutical industry's shift towards e-commerce is a response to evolving consumer preferences and a recognition of the convenience and efficiency that online platforms provide.
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The market encompasses a wide range of products including Food and Beverages, Toiletries, Oral Hygiene products, Detergents, Cosmetics, and Home care. The market is driven by changing lifestyles and the increasing middle-class population, leading to a surge in demand for Packaged foods and Health care products. Lifestyle changes, such as health-consciousness and dual-income families, have emphasized the importance of Cleansing products and Green alternatives. The FMCG sector is witnessing significant growth in the Health care segment, with a focus on preventive care and wellness. Online shopping and E-commerce platforms have made it easier for consumers to access FMCG products from the comfort of their homes. However, the market also faces challenges from Counterfeit brands, which can harm consumer trust and undermine the reputation of genuine brands. FMCG networks are expanding their reach to cater to the needs of consumers in both urban and rural areas. The use of technology, such as automation and digital marketing, is also becoming increasingly important for companies to stay competitive. Overall, the FMCG market is expected to continue its growth trajectory, driven by changing consumer preferences and demographics. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Growing preference for e-commerce online distribution is notably driving market growth. The proliferation of e-commerce has significantly impacted the sales of Fast-Moving Consumer Goods (FMCG) products. Consumers' preference for purchasing FMCG items online is driven by the extensive selection of brands, particularly in categories such as cleansing products, skincare, beauty products, and plant-based options. The convenience of shopping from home, coupled with personalized shopping assistance and product recommendations, has intensified the trend. E-commerce platforms enable consumers to gather information, compare prices, and make informed decisions on various food and beverages, personal care items, and other FMCG products. The rise in dual-income families and the growing health-consciousness have further fueled the demand for natural and green alternatives. The influx of e-commerce vendors, in-house production, contract-based production, subscription services, and mobile apps have expanded retail channels and modernized the FMCG market. Price wars among these vendors continue to intensify, ensuring competitive pricing and value for consumers. Thus, such factors are driving the growth of the market during the market forecast period.
Rising consumption of ready-to-eat food products is the key trend in the market. The FMCG market, encompassing supermarkets and hypermarkets, grocery stores, specialty stores, and various retail channels, has witnessed significant growth in recent years. This expansion can be attributed to several factors, including the rise of dual-income families and the increasing health-consciousness among consumers. Consequently, there is a heightened demand for cleansing products, skincare, and beauty items, as well as plant-based options and natural, green alternatives. In-house production and contract-based production have become common practices among manufacturers to meet the escalating demand for these products. Furthermore, modern retail formats such as mobile apps and subscription services have emerged, providing consumers with greater convenience and accessibility. The market for FMCG products, particularly those in the ready-to-cook and ready-to-eat categories, has experienced a surge due to the pandemic, with individuals working from home and seeking time-saving solutions. This shift is evident in the sales figures of various retailers, with Blinkit, an Indian online grocery store, reporting a 17% increase in sales in the ready-to-eat category, a 31% increase in readymade meals and mixes, and a 41% increase in frozen food during the pandemic. Despite the growth, the FMCG market faces challenges, including the prevalence of counterfeit brands, price wars, and competition from various retail formats. Nevertheless, the market's potential remains vast, with opportunities for innovation and growth in areas such as sustainable production methods and customized product offerings. Thus, such trends will shape the growth of the market during the forecast period.
Lack of proper infrastructure in emerging economies is the major challenge that affects the growth of the market. In emerging economies, particularly in the Asia Pacific (APAC) region, the market for Fast-Moving Consumer Goods (FMCG) is experiencing significant growth. This expansion is driven by several factors, including improving economic conditions, urbanization, and increasing health consciousness among consumers. The food processing industry's expansion in these regions is further fueling the demand for FMCG products, such as cleansing products, skincare, and beauty items. However, challenges persist in APAC, particularly in the areas of infrastructure for storing and manufacturing essential food processing ingredients, like preservatives, emulsifiers, and enzymes. Proper handling and care, including maintaining specific temperatures and preventing contamination, are crucial to preserve the chemical composition of these ingredients. In response, various retail channels, including supermarkets and hypermarkets, grocery stores, specialty stores, and modern retail formats, are adapting to meet consumer demands. Innovative solutions like in-house production, contract-based production, subscription services, mobile apps, and green alternatives, including natural products and plant-based options, are gaining popularity. Price wars among retailers add to the competition, making it essential for FMCG brands to differentiate themselves through quality and innovation. Hence, the above factors will impede the growth of the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ITC Ltd. - The company offers FMCG products such as cigarettes, cigars, and AASHIRWAD atta.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The food and beverage segment is estimated to witness significant growth during the forecast period. The Food and Beverages, Healthcare, Toiletries, Oral Hygiene products, Detergents, Cosmetics sector, popularly known as Fast-Moving Consumer Goods (FMCG) market, experienced significant growth in 2023, driven by changing lifestyles and economic progress in both urban and developing regions. The increasing middle-class population and improved disposable income levels have fueled the demand for FMCG products, particularly in the areas of packaged foods, home care, and personal care.
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The food and beverage segment accounted for USD 1.20 billion in 2018. Manufacturers have responded to this trend by expanding their food processing and packaging solutions to cater to the growing demand for convenient and processed foods. The popularity of urbanization has led to a surge in the consumption of packaged and frozen foods, as well as packaged drinks. Inflation and raw material prices have presented challenges for FMCG manufacturers, but they have countered these issues by offering sustainable and eco-friendly product options to consumers. The demand for FMCG products is not limited to urban areas, as the semi-urban and rural populations are also adopting these products at an increasing rate. Online purchasing and e-commerce platforms have emerged as popular channels for FMCG sales, particularly among smartphone users who can easily access discounts and deals.
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APAC is estimated to contribute 43% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The Fast-Moving Consumer Goods (FMCG) market encompasses a wide range of products including Food and Beverages, Healthcare, Toiletries, Oral Hygiene Products, Detergents, Cosmetics, and more. Changing lifestyles and economic progress in various sectors have led to increased demand for these items. The middle-class population, in particular, is driving growth in urban areas, with a focus on packaged foods, consumer electronics, and home care products. Inflation and rising raw material prices pose challenges, but sustainability and shopping convenience are key trends. The urban sector dominates FMCG sales, but semi-urban and rural markets are also expanding, with online purchasing and e-commerce platforms increasingly popular. Consumer electronics, pet care, and healthcare are emerging categories. Lifestyle changes and discounts are major factors influencing consumer behavior. FMCG networks operate through supermarkets/hypermarkets, e-commerce platforms, offline retail stores, specialty stores, convenience stores, food malls, third-party websites, and company-owned websites. Smartphone users are a significant demographic, with many opting for online shopping. Counterfeiting is a concern, but efforts are being made to ensure product authenticity. Overall, the FMCG market is dynamic and diverse, adapting to the evolving needs of consumers.
The market report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The Fast-Moving Consumer Goods (FMCG) market encompasses a wide range of products including Food and Beverages, Healthcare, Toiletries, Oral Hygiene Products, Detergents, Cosmetics, and more. Factors such as changing lifestyles, economic progress, and urbanization have significantly influenced the growth of this sector. Packaged foods have gained immense popularity among the middle-class population due to their convenience and longer shelf life. Urban sectors have been the major contributors to the growth of the FMCG market, but the semi-urban and rural areas are also witnessing a surge in demand, driven by increasing economic progress and urbanization. Inflation and raw materials prices have posed challenges to FMCG companies, compelling them to focus on sustainable and cost-effective production methods. Counterfeiting of products remains a significant concern, necessitating stringent measures to ensure product authenticity. The rise of e-commerce and online retail platforms has transformed the FMCG landscape. Consumer electronics, pet care, and health care are among the popular categories sold online. Smartphone users are the primary drivers of online purchasing, availing discounts and offers on various e-commerce platforms and company-owned websites. Supermarkets/hypermarkets, retail stores, food malls, third-party websites, and specialty stores continue to coexist with e-commerce, catering to diverse consumer preferences and shopping habits. The FMCG networks are adapting to these trends, integrating omnichannel strategies to cater to the evolving needs of consumers.
Market Scope |
|
Report Coverage |
Details |
Page number |
149 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.27% |
Market growth 2024-2028 |
USD 456.6 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
3.13 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 43% |
Key countries |
China, US, India, Russia, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
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 |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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