Global Trends in FMCG to be looked for in 2019

Understanding future market trends is essential for FMCG businesses to make critical, near-future decisions when it comes to new-market penetration, market expansion and product development. Only when upcoming market trends are appreciated can revenue-focused strategies be developed. The trends influencing the FMCG sales in 2019 are: MORE DISPOSABLE INCOME AND GREAT NUMBER OF CONSUMERS IN ASIA The increase in GDP and disposable income will surely give its impact over the FMCG market in 2019. Emerging economies countries with increasing middle- class population are witnessing an increase in consumers with more money to spend. Organization for Economic Cooperation and Development (OECD) suggests that this would lead to a billion new consumers spending between US Dollar 10 to 100 per day by the end of 2020. By 2030 it is estimated that over two-third of the world's middle-class consumers would live in Asia. FMCG in emerging markets is growing two to four times more than in developed markets. DEMANDS AS PER POPULATION DENSITY As the world is growing rapidly, the population landscape is dominated by post-retirement FMCG shoppers. As per the forecast by the UN, next couple of decades is set forth to see over-65s population to double to around a billion. For FMCG, this rising tide of silver consumers could be a golden opportunity. GROWTH OF E-COMMERCE The e-commerce revenue is expected to rise to USD 4 trillion by 2020 globally. It is seen that e- commerce has grown four times faster than the offline sales, predicting to double global online sales within next 5 years. FMCG e-commerce is expected to make 10-12% of total FMCG global sales, opening a USD 400 billion opportunity for the industry players. With the growing market will be seen an increase in the competition, which means FMCG players will have to follow omnichannel sales approach to survive. MOVING TREAND TOWARDS HEALTHIER PRODUCTS Inspired by greater awareness, interest and understanding of wellbeing, trend of 'clean' food continues. There is a great emphasis over health and well-being products available in the market. Many out of these products are included in researches based on nutrition and longevity. The sales of snacks dropped in the years 2017 and 2018. Snack companies are moving towards “clean” food snacks to boost their sales. SUSTAINABILITY AS PER CONSUMERS In FMCG sector sustainability is expected to be at the lead in 2019. Environmental concerns are being the concept of responsibility as well as accountability. Consumers are becoming more cautious about sustainability across the whole supply chain; right from sourcing of ingredients to packaging. People are more influence by green, environmental factors bringing health of the land and agricultural regeneration to spotlight. FMCG TO BE HIGHLY INFLUENCED BY MILLENNIALS Millennial consumers being too conscious prefer to research about a product online and influence the peers by sharing information online than a mass-brand channel approach. They look for products that they perceive as innovative product lines. These under 35s have their individual identity, tastes and have the funds too. With the increased popularity of e-commerce amongst millennials, small brands and digital challenger brands have an increased scope to grab the market. DEMANDS OF CONSUMERS FOR PRODUCT CONVINIENCE With growing trend of modern lifestyle there is a great influence of on-the-go lifestyle in 2019. There has been an increase in demand for ready-to-eat products and an urge to have restaurant quality food at home that has influenced the growth in this sector. With the rising culture of delivery apps, consumers demand flexibility in how, when and where to shop their FMCG products. This has move the trend towards consumers making small and frequent purchases, growing the demand for convenience foods to fit this lifestyle dynamic. Undoubtedly, 2019 will be a year of huge change in the broad as well as the macro FMCG markets. Those businesses who understand these new and divergent pathways have a far better opportunity to navigate them successfully.

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