FMCG industry's post pandemic condition analysis

● Shift in consumer behavior: The pandemic has led to a significant change in

consumer behavior, with people stockpiling essential items, leading to shortages, and a
shift towards online shopping. This has had a significant impact on the FMCG industry,
forcing companies to adapt to changing demand patterns and increased competition
from e-commerce players.
● One of the effects of the COVID-19 pandemic on the Fast Moving Consumer Goods
(FMCG) industry has been an increase in outsourced employees. This refers to the
practice of using external contractors or third-party companies to perform certain tasks
or functions within the organization, rather than hiring full-time employees.
● Online Sales Surge or Direct-to-Consumer Sales: With lockdowns and social
distancing measures in place, there has been a surge in online sales for FMCG
products. This trend is expected to continue as people become more comfortable with
online shopping.
● Increased focus on Health and Hygiene: The pandemic has heightened consumer
awareness about health and hygiene, leading to an increase in demand for products
such as hand sanitizers, disinfectants, and personal protective equipment.
● innovation in Packaging: With an increased focus on health and hygiene, there has
been an increased demand for packaging that is easy to clean and disinfect. This has
led to the development of new packaging materials and designs that meet these needs
● Expansion of Local Production: In response to supply chain disruptions caused by the
pandemic, there has been a growing trend of companies expanding local production to
reduce dependence on overseas suppliers. This has led to the development of new local
suppliers and job creation in the FMCG industry.
● Supply chain disruptions: The pandemic has resulted in significant disruptions to
global supply chains, with lockdowns and border closures leading to delays and
shortages of goods. The FMCG industry has had to find ways to ensure continuity of
supply and maintain inventory levels.Some of the key effects of supply chain disruptions
that fmcg still facing:
Shortages of goods: The pandemic has resulted in lockdowns, border closures, and other
measures that have disrupted the flow of goods and led to shortages of essential items such as
food and personal care products.

Delays in delivery: The pandemic has caused significant delays in delivery, as shipping and
transportation have been impacted by restrictions and disruptions.

Increased costs: Supply chain disruptions have led to higher costs for FMCG companies, as
they have had to find alternative sources of supply, pay premium prices for goods, and absorb
additional shipping and logistics costs.

Inventory management challenges: The pandemic has made it difficult for FMCG companies to
manage their inventory levels, as they have had to respond to sudden changes in demand and
deal with shortages and delays in supply.
 ● FMCG categories like food, that experienced strong growth during the pandemic are
expected to return to normal growth rates in the coming years. On the other hand,
markets like alcoholic drinks which depend on out of home sales for a large share of
revenue were negatively impacted by the pandemic and are expected to receive a boost
in growth over the the next few years as consumers make up for lost time

While the COVID-19 pandemic has had a significant impact on the

Fast Moving Consumer Goods (FMCG) industry, there have also been some positive
impacts. Here are some of the key ways in which the FMCG industry has been positively
impacted by the pandemic:

Increase in online sales: The pandemic has accelerated the shift towards online
shopping, leading to a significant increase in online sales for FMCG companies. This
has allowed companies to reach new customers and expand their reach.

Growth in essential products: The pandemic has led to an increase in demand for
essential items such as cleaning products, personal care items, and food products. This
has resulted in growth for companies producing these products, providing them with new
opportunities for growth and expansion.

Accelerated digital transformation: The pandemic has accelerated the digital

transformation of the FMCG industry, with companies investing in technology to improve
their supply chain operations, enhance the customer experience, and remain
competitive.

Development of More Sustainable Practices: With the pandemic highlighting the

importance of sustainability and reducing waste, FMCG companies have been looking
for ways to reduce their environmental impact. This has led to the development of more
eco-friendly packaging and an emphasis on reducing food waste.