Is the FMCG Market Dying?

2022 was a challenging year for certain FMCG product categories. What awaits manufacturers and distributors in 2023?

According to the NIQ Report in the Q4 of 2022, despite rising prices and inflation, which contributed to a reduction in global demand for consumer goods by 2.1%, the global FMCG market nominally grew by 6.3%. Market growth was driven by an 8.4% increase in the amount of sales.

Interesting fact!

The fastest growing categories of the FMCG market were Snacking and Pet Care Products. Following categories were Frozen, Dairy and Paper products.

What do manufacturers and distributors need to know to increase efficiency and profit in 2023?

An analysis of the FMCG market in the regional context showed that in the countries of Europe, North and Latin America, the Middle East, and the Asia-Pacific region, inflation expectations and rising inflation rates had the greatest impact on demand. Consumers preferred daily goods and reduced demand for luxury goods.

Secondly, natural and environmentally friendly products of local production were in high demand among consumers. As a result, private brands and small manufacturers recorded comparatively high rate of sales.

The second group of beneficiaries in the current situation in the FMCG market were discount stores that offered everyday goods at a lower cost.

In 2023, the trend of conscious consumption maintains its position, which is undoubtedly a growth point for business. To strengthen competitive advantages, as well as to determine the growth point of your business, we recommend you to conduct a full distribution audit.

Since the distribution audit requires a certain set of control tools and knowledge, it is recommended to involve specialists. Smartup owns rich experience and an impressive portfolio of successful cases.

We will help to conduct a distribution audit and to automate your business processes.