Fast moving consumer goods (FMCG)

Fast-moving consumer goods are products that sell quickly at relatively low cost. These goods are also called consumer packaged goods.

FMCGs have a short shelf life because of high consumer demand (e.g., soft drinks and confections) or because they are perishable (e.g., meat, dairy products, and baked goods).These goods are purchased frequently, consumed rapidly, priced low, and sold in large quantities. They also have a high turnover when they’re on the shelf at the store.

Understanding Fast-Moving Consumer Goods (FMCG)

FMCG products, or merely fast moving consumer goods, are non-durable products that need to be sold, usually at a low cost, and consumed within a set duration. FMCG products are perishable and highly demanded, so they are produced and sold in large quantities. Examples of these goods include processed, baked, frozen and fresh food, beverages and confectionery, toiletries, over-the-counter medications etc.

FMCG products are goods that are meant for immediate consumption by the average consumer. They are day-to-day items that are purchased recurrently by consumers. It is an industry where competitiveness is one way to thrive, by offering various alternatives and choices for the consumer to choose from.
As a result, the turnover rate for this industry is also high, crediting the high volume production and equally high purchases.
Packaging plays a major role in the operations, not only for identification, but to also provide any possible extension to and efficacy to the mostly perishable goods in this segment.
These goods are often divided into categories, owing to their shelf-life. They include processed goods like cheese, cereals etc. and prepared meals that are ready to eat and/or frozen food that is heated at the time of consumption. Beverages, baked goods, cleaning products and prescriptionless medications, stationery etc.

Highlights of Fast Moving Consumer Goods Products (FMCG)

FMCG products have inelastic demand i.e. despite the change in factors of demand, the demand for them is loosely affected.
The recent shift in consumer perspective to purchase and support local brands increased the importance and brought local contributions in the FMCG industry to light. Local consumption reduces costs in marketing, packaging and transportation, while also making it convenient for the consumer to procure their products.
FMCG products make up more than a half of the entire consumer spending segment. It also is the largest employing industry, often providing jobs in many rural and urban areas.

Types of Fast-Moving Consumer Goods

Processed foods: Cheese products, cereals, and boxed pasta
Prepared meals: Ready-to-eat meals
Beverages: Bottled water, energy drinks, and juices
Baked goods: Cookies, croissants, and bagels
Fresh foods, frozen foods, and dry goods: Fruits, vegetables, and nuts
Medicines: Aspirin, pain relievers, and other medication that can be purchased without a prescription
Cleaning products: Baking soda, oven cleaner, and window and glass cleaner
Cosmetics and toiletries: Hair care products, concealers, toothpaste, and soap
Office supplies: Pens, pencils, and markers

The Fast-Moving Consumer Goods Industry

Because fast-moving consumer goods have such a high turnover rate, the market is not only very large, it is very competitive. Some of the world’s largest companies compete for market share in this industry including Tyson Foods, Coca-Cola, Unilever, Procter & Gamble, Nestlé, PepsiCo, and Danone.

Companies like these need to focus their efforts on marketing fast-moving consumer goods to entice and attract consumers to buy their products.

That’s why packaging is a very important factor in the production process. The logistics and distribution systems often require secondary and tertiary packaging to maximize efficiency. The unit pack or primary package is critical for product protection and shelf life, and also provides information and sales incentives to consumers.

FAQs

What Are Consumer Packaged Goods?

Consumer packaged goods are the same as fast-moving consumer goods. They are items with high turnover rates, low prices, or short shelf lives. Fast-moving consumer goods are characterized by low profit margins and large sales quantities. Some products that fall within this group include soft drinks, toilet paper, and dairy products.

What Are 3 Types of Consumer Goods?

The three main consumer goods categories are durable goods, nondurable goods, and services. Durable goods, such as furniture or cars, last at least three years. Often, economists will watch durable goods spending to track the economy’s health. Nondurable goods are items with a shelf life of under three years and are consumed rapidly. Fast-moving consumer goods fall within this category. Finally, services include intangible services or products, such as haircuts or car washes.

What Are Some of the Largest Fast-Moving Consumer Goods Companies?

Nestlé, Procter & Gamble, and Coca-Cola are among the world’s largest fast-moving consumer goods companies. Swiss-based Nestlé, for instance, operates over 2,000 brands that cover everything from vitamins to frozen foods.8 Notably, the competition for market share is high within the fast-moving consumer goods industry. In response, companies focus heavily on packaging to attract customers and preserve the product’s shelf life and integrity.

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