Although FMCG for most of us is a mysterious-sounding abbreviation, we use this group of products more or less consciously every day, including this concept. What is FMCG? Who is the market leader in this sector? Find out in our latest article.
Definition of FMCG
FMCG (Fast Moving Consumer Goods) is an acronym that can be difficult for most of us to decipher, but in fact we come into contact with it every day. Because Fast Moving Consumer Goods, in Polish, fast-moving goods or basic necessities, are articles that we use every day and we can buy them in most stores and at a relatively low price. Here we can list drinks, sweets, cosmetics, cleaning products, tobacco products, alcohol and even over-the-counter drugs. Of course, these are not all articles that can be included in the FMCG.
Speaking of the consumer goods industry, it should be mentioned that it consists not only of production activities, but also marketing. The role of marketing is extremely important - if the consumer is not encouraged by advertising to the brand, he will most likely not buy the product, especially when the price differences are not too large compared to other, better-promoted products. Marketing activities are not limited to advertising, in order to create effective advertising, you need, among others market research or consumer behavior research. Of course, these are not all important aspects - in sales, even the place where the product is placed on the store shelf is important and is considered marketing.
The largest FMCG producers in the world
At the moment (October 2019), little has changed compared to previous years. Still at the forefront of producers of fast-moving consumer products are:
- Nestlé,
- Procter & Gamble,
- PepsiCo,
- Unilever,
- Ab InBev,
- JBS,
- Tyson Foods.
According to the data that can be found on the website handlextra.pl, the average return on sales of the 50 largest global producers increased in 2018 by 0.4 percentage points compared to 2017. This gives us the best result since 2002, or 18.2 percent.
The total turnover of the 50 manufacturers amounted to US $ 1,140 billion, 5.9 percent more than in 2017. Nestlé has been at the top of the list for a long time. The sales of this Swiss concern increased to the level of 93.4 billion dollars. Procter & Gamble is second, with sales of $ 66.3 billion, and PepsiCo is third ($ 64.7 billion).
The first 10 largest concerns on the FMCG market in 2018:
- Nestlé (CHE),
- Procter & Gamble (USA),
- PepsiCo (USA),
- Unilever (GBR, NED),
- Ab InBev (BEL),
- JBS (BRA),
- Tyson Foods (USA),
- British American Tobacco (GBR),
- Coca-Cola Company (USA),
- L'Oreal (FRA).