What is FMCG?
FMCG stands for Fast Moving Consumer Goods. It is the first classification of the consumer market. We can define the consumer market as the market for products and services like toiletries, paper products, glassware, electronics apparel etc. These markets are meant for final consumption. In the consumer market, companies try to identify and meet the needs of the consumer through their products and services. Additionally, they try to position their products in consumer’s minds for better awareness and marketing. FMCG is a part of this consumer market. Some examples of leading FMCGs are Unilever, Coca Cola, Pepsi and Johnson and Johnson, Nestle etc. Apart from the products categories mentioned above such as toiletries, glassware, FMCG also consists of pharmaceuticals, packaged foods and soft drinks.
Characteristic of FMCG:-
The key characteristic of the FMCG market is it operates at low unit value with high potential volume. Since the products categorized are purchased, repurchased and consumed in bulk on the retail front, therefore it is named as fast-moving consumer goods. In FMCG, there are various categories and each category occupies a different share and this industry is one of the top 10 industries that will boom to great heights in near future. Before starting or investing in an FMCG business, you must be aware of the type of category and its market share. Some of them are listed below:-
⮚Food and Beverage - It consists of 49 % of the market share and is further classified into staple, impulse foods, baked, convenience, confectionery, dairy products and snacks. The non-alcoholic beverages listed in this category consists of soft drinks, fruit drinks/juices, water, tea coffee, health beverages such as Horlicks, boost etc.
Personal Care - It consists of 18% of the market share and is categorized into hair care, skin care, soap and bath, baby care.
Home Care - It consists of 11% of the market share and is further categorized into the surface, fabric, toiletries, insecticide, dishwashing and air cleaner.
⮚Cigarette and Alcohol- It account for 17% market share and the products are all under IMFL, Indian Manufactured Foreign liquor such as wine and beer.
Over the top - This category is also known as over the counter. It accounts for over 5% of the market share. This category consists of those products that we can get from the pharmacy without the requirement of a prescription such as disprin, crocin index, zandubaam etc.
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