The Fast-Moving Consumer Goods (FMCG) industry is undergoing mammoth changes, especially in the post-COVID world. Tеchnology has bеcomе an intеgral part of this industry. That is why there is no doubt that thе latеst trеnds in this industry revolve around technology dеvеlopmеnt.
The fundamental goals for any business in the contemporary landscape are growth and sustainability. Embracing the latest trends in FMCG industry at an early stage positions you ahead of competitors in the market. Find out all current trends in FMCG industry below.
Top 6 Latest Trends in FMCG Industry
- Consumers Want Convenience
Busier lifestyles in recent years have made consumers demand convenience. Spending hours to source meals and food options not only kills appetite but also means that most people do not have access to a variety of meals. That is where the FMCG industry has improved with the proliferation of various services.
One of the latest trends in FMCG industry is the restaurant delivery apps like Uber Eats, Zomato, etc. They distribute ready-made meals to your front door. Following their path, even supermarkets are stepping up their game. Consumers can also gеt a large selection of ready-to-eat meals.
Companiеs that manufacturе food and drink products arе making things more convеniеnt. For instancе, thеy havе startеd to offеr a biggеr range of meals that are not only easy to prepare but also have a frеsh tastе. Additionally, thеrе аrе more options for nеw food and drink items, conveniently packaged.
Read this blog to know which industries fall under the FMCG sector: The Biggest Challenges Faced by the FMCG Sector in 2023.
- Health is Very Important to Consumers
The backbone of the FMCG industry is to pay attention to the health of its consumers. Health-conscious food options are a staple in many food outlets. Whether it is low-sodium, reduced fat or sugar-free products, products that are “health-conscious” have a good reputation amongst consumers.
Up until a few years ago, finding such food options was hard since they were available in health stores or niche outlets. However, nowadays, owing to the latest trends in FMCG industry, many local supermarkets and food stores have a selection of healthy food items.
For instance, products like plant-based protein milk alternatives (like soy or almond), and lab-grown or “cultured” meat are becoming more popular. There is a high demand for allergen-free products. For instance, many latest products insist on being gluten-free to appeal to those with dietary restrictions.
As per the latest trends, allergen-free products are gaining popularity even among people without allergies. Consumers who do not suffer from a gluten allergy are using gluten-free products owing to their perceived health benefits.
- Consumers are Environmentally Aware
As per research on the FMCG industry trends, consumers are becoming more and more environmentally conscious. They understand the negative impact of FMCG production and its by-products. There are many products labelled as “organic” and “local” – it gives them a broad appeal as does the adoption of more plant-based foods.
Consumers who eat meat, dairy, poultry, fish, etc, can choose products that are “grass-fed”or “free-range”. But it is more than just the product. It also depends on the product packaging. FMCG packaging trends impact consumer choices as more and more consumers are looking for plastic-free solutions.
As sustainability becomes the core of the latest trends in FMCG industry, consumers and retailers have to make ethical choices. Such choices must positively impact the environment and promote sustainability as well as individual health. Let’s see why sustainability is important.
- Sustainability
Consumers in recent years have shown their interest in purchasing “green” or environmentally-conscious products. The younger generation prefers using sustainable products as a practice of curbing climate change.
According to the latest trends in FMCG industry, modern and younger consumers pay more attention to companies’ social activities. They seek responsible manufacturing practices.
As sustainability comes to the forefront, FMCG trends in India need to step up their game. Such FMCG market trends need to focus on sourcing their materials from ethical sources. Not just that they also need to address the packaging materials and if they are environmentally-friendly.
Since there is the practice of mass consumerism in the FMCG industry, the latest trends in FMCG industry need to offer compostable, recyclable and reusable packaging. It serves two purposes- meets the consumer demands and does not contribute to pollution.
However, it is not just sustainable practices that consumers want. Companies need to pay attention to marketing as well. How well they market their products determines their success. Find out more below.
- Consumers Want an Experience
Amongst the latest trends in FMCG industry, an important trend is to create experiences around products. Millennials and Gen-Z consumers want a story or an experience when it comes to using a product.
That is why industry players are looking to create experiences and encourage their consumers to share their experiences with the product. Many companies invest in digital capabilities to enable more personalised communication via social media and community management.
Furthermore, FMCG makers are launching more products that grab the attention of consumers. For instance, Coca-Cola did a campaign where you could put names on the cans, or snacks that come up with extreme flavours; etc.
Such products encourage consumers to share their experiences online. This, in turn, generates conversations with peers and friends for a better return on investments in marketing. Not just that companies also get a treasure trove of data that informs marketing efforts.
All these factors contribute to a well-oiled FMCG industry. However, there is one of the latest trends in FMCG industry that ensures that the industry keeps up with the rapid changes. That is technology- learn more on how it affects the industry.
- 3 Technology Trends
Technology, an enduring trend, continually transforms and evolves. In today’s landscape, staying abreast of cutting-edge tech is crucial for consumers. Utilising data allows brands to understand current customer interactions and leverage insights to their advantage.Let’s see the 3 big technology trends that have transformed the FMCG industry.
- Digitisation
Digital transformation in the FMCG industry is becoming a predominant trend as brands have started to interact with consumers across online and offline channels. Through online sources, companies have access to valuable data about consumer behaviour.
They can track and understand consumer behaviour by assessing social media platforms, and web and mobile applications. This drives FMCG digital trends allowing brands to better engage with their customers and increase conversion.
- Data Analytics
Digitisation means dealing with data analysis. Such latest trends in FMCG industry allow companies to analyse shopping patterns and marketing trends that are working. This allows the FMCG companies to explore how they market to customers, having analysed consumer behaviour.
FMCG analytics researches customer behaviours to help FMCG companies with a deeper understanding of their purchase habits. This helps to optimise communications with their customers offering more personalised experiences. Other than data analytics, there is another technological trend that helps the FMCG industry- AI. Find out more below.
- AI
AI is becoming more present in multiple industries. The latest trends in FMCG industry ses AI creating more opportunities. For example, voice-based systems give customers 24×7 support to find products.
It also helps to find customers through recommendation engines to provide personalised product suggestions. Implementing AI-based solutions helps FMCG companies to enhance customer experience, thereby increasing customer satisfaction and retention.
FAQs: Navigating Change: Exploring 6 Latest Trends in FMCG Industry 2024
What role does technology play in reshaping FMCG supply chain logistics?
Through social media, supply chains can understand consumer behaviour and update their services as per demand. Also, using AI and ML tracks shopping habits and even streamlines the supply chain process by assessing possible risks and delivery time.
How are FMCG companies addressing sustainability concerns in their supply chains?
Focus on sustainable packaging solutions like reducing plastic usage and recyclability and biodegradability of products. FMCG companies can address sustainability by using compostable or reusable packaging and following ethical practices.
What role does logistics play in FMCG industry?
FMCG logistics focuses on efficiency and effectiveness in daily activities like transportation and delivery of goods and materials. It looks after the management of the flow of goods from one point of origin to another to meet the needs of customers.
Can data analytics and AI enhance the efficiency of FMCG supply chains?
Yes, data analytics and AI optimise FMCG supply chains by predicting demand, improving inventory management, and enhancing overall operational efficiency.
What strategies can FMCG companies adopt to build resilience in their global supply chains?
FMCG companies can build resilience by diversifying suppliers, embracing technology, implementing robust risk management, and fostering collaboration across the supply chain.
Conclusion
In short, the FMCG industry in 2024 is experiencing transformative shifts due to technological advancements. Amongst all the latest trends in FMCG industry, embracing digitisation, data analytics, and AI is imperative for understanding consumer behaviour, fostering personalised experiences, and optimising supply chain logistics.
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