FAST MOVING CONSUMER GOODS (FMCG)

JULY 22,2021

PRACHI BHOIR
Fast-moving consumer goods, also known as consumer packaged goods are
nothing but products that come under the category of fast selling and are
cost-effective. These are the products that we, as consumers, frequently use in our
daily lives. Which include soap, cosmetics, ready-to-eat food products, toothpaste,
soft drink, packaged food. The products that sell like hotcakes.

Why is FMCG leading the way?

So, in India, the fast-moving consumer goods industry is considered the fourth
largest economic sector. FMCG is climbing the charts because it is cheap and
cheerful. FMCG industry is providing a pocket-friendly solution for almost every
problem. It has a solution for every age group, for instance, you don't feel like
cooking for yourself and also running short on money, you know where to look at
Maggie! So, the industry is not limited to a particular gender or an age group it
makes products for everyone in such a way that everybody is content.

FMCG industry has a wide product list, for example, Hindustan Unilever Limited
is one of the most valuable companies in India that sells products that comes under
the category of home care, beauty and self-care, and foods and refreshment. All
these products are made for the consumption of average consumers, also called as

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middle class. FMCGs account for more than half of all consumer spending, but
they tend to be low-involvement purchases.

Like all the other industry FMCG has to deal with adversity. One of the major
challenges is competition as there are many companies, therefore, each company
has to do its best to stay in the market. Indian FMCG industry has to work with a
complicated distribution system. To improve the market share FMCGs companies
need to reach out at the lower end of the economic pyramid. Another difficulty that
this industry has to face is "Me-too products, which unlawfully mimic the labels of
established brands. Because of this, the scope of FMCG products is minimized.

Let's talk about the opportunities that come with the FMCG industry, that is, export
the potential products to the neighbouring countries. Increases the purchasing
power of Indian Consumers. As the income rises it leads to high spending on
consumer goods.

LIST OF FAST MOVING CONSUMER GOODS(FMCG)

● BEVERAGES:- This category includes all the products you prefer drinking.
For example, a pack of juice you grab to satisfy your thirst.
● BAKED PRODUCTS:- Various types of biscuits, cupcakes, bread, cookies,
packaged cakes and more fall under this category. The companies come with
creative varieties to grab the interest of consumers. These products are not
that durable and need to be consumed in the given shelf life.
● PROCESSED FOODS:- These products come in a package, it comes in
variety like ready to need or with nutritional value. Some of the products
come with artificial flavour and preservatives that help to increase their shelf
life.
● COSMETICS:- This category includes skincare products, everything that is
used in personal care.
● TOILETRIES:- This includes soap, detergent, toothpaste, razor and more.

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 ● HEALTH AND HYGIENE:- This includes medicine, surgical products,
sanitary napkin, tampons and so on.

TOP FMCG COMPANIES IN THE WORLD:-

● NESTLE AG:- It is a food and beverages company. It is known to

manufacture and distribute coffee, cereal, baby food, chocolate and more.
The famous brand of nestle is KitKat, maggie, Nescafe and so forth.
● Jhonson & Jhonson:- This is divided into three categories; Pharmaceuticals,
medical devices and consumer healthcare.
● Procter & Gamble:- Some of the well-known brands of the company include
Vicks, Whisper, Old Spice and more. The product portfolio of Procter &
Gamble comprises Baby, Feminine and Family Care; Beauty; Home Care;
Health Care and Grooming products.
● Pepsi Co:- It is the owner of highly recognized brands like lays, Pepsi and
others.

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FMCG companies are currently growing and will continue to grow very fast. These
industries provide a very pocket-friendly option along with quality and quantity.
Tho it falls under the category of non-durable as they have limited shelf life.