Establishing the necessary culture of innovation for companies to design innovative digital products, implementing ideas developed through corporate entrepreneurship, and ensuring their commercialization on a global scale, GOOINN Innovation has examined the future of the FMCG market, future trends, new generation technologies, and value-creating ventures in one of the world’s largest industries.
Annual growth of 5.4% expected FMCG, which is one of the most competitive sectors, undergoes rapid and significant changes, whether it is personal durable goods, the food and beverage industry, or home care. Due to the development of consumers’ physical shopping experience and the emergence of experiential retail, the global FMCG market has experienced considerable growth in the last decade. It is estimated to reach $15,361.8 billion USD by 2025, growing at a compound annual growth rate (CAGR) of 5.4% from 2018 to 2025.
Trends will shape according to different generations, needs, cultures, and technologies
According to GOOINN’s FMCG Report, while small-scale stores and traditional channels contribute to the growth of fast-moving consumer goods retailers, modern retail in Turkey has a much greater growth potential compared to similar countries. The increase in e-commerce, which exceeds the European average, also demonstrates the importance of understanding globally prevalent omni-channel preferences.
Hot beverages and cleaning category are on the rise
As e-commerce expands rapidly in all categories, the hot beverage category leads the growth. The five fastest-growing e-commerce categories are Turkish coffee, instant coffee, tea, cleaning products, and room sprays.
We moved away from trying new products during the pandemic
In the rising omni-channel marketing, it is emphasized that besides understanding the consumer, the changed lifestyles, product preferences, and channel preferences of shoppers, especially after the Covid-19 pandemic, need to be analyzed. Although people have been somewhat reluctant to try new products due to the search for trust during the pandemic, it seems that the expectation for innovation has returned and contributes significantly to growth as the effects of the pandemic are overcome.
Promotions are back
As value perceptions change with the financial impact of the Covid-19 outbreak, the importance of products that add value to consumers in all sub-groups, especially in the food sector, increased overall sales. Promotions, which were gradually eliminated during the pandemic period, continue to play an active role in consumer preferences as they return to our lives after the pandemic.
Companies using retail analytics experience increased sales
In addition to understanding the consumer, being flexible in the changing retail environment is also crucial. In a period where retail analytics is needed more than ever, utilizing advanced analytical applications that combine digital technology with local and global examples clearly increases sales. Category management, marketing, supply chain, operations, and purchasing are among the multidimensional areas that digital and analytics need to focus on.
Companies using technology correctly will grow
Innovations play a key role in the fast-moving consumer goods industry, where technologies and market trends change rapidly. Therefore, it is said that companies that adapt and continue to adapt within this sector will positively contribute to the FMCG industry. In the past few years, it is assumed that this growth will continue in the long term. According to the FMCG Report, consumer demands and needs will continue to shape the future of the fast-moving consumer goods industry.
