Consumer Goods

Consumer goods (CG) industry provides a wide range of daily usable products that are manufactured according to individual usage and as per end user requirements. Consumer goods industry is a flourishing and intensifying industry due to its fast processing and quick customer services. Consumer goods mainly consist of food products and beverages, healthcare products, cosmetics products, household cleaning products, variety of home appliances, electrical & electronic goods and so on. On the basis of product durability, consumer goods are divided into two categories; durable consumer goods and non-durable consumer goods. Durable consumer goods consist of long lasting products whereas non-durable consumer goods mainly include single usable products. Non-durable consumer goods are referred as fast moving consumer goods (FMCG) or consumer packaged goods (CPG). Demand for non-durable consumer goods is more than durable consumer goods due to their less shelf life. Durable consumer goods have high life span of one to three years which leads to comparatively lesser investment by end users. Durable consumer goods are further sub divided into white consumer goods (air conditioners, refrigerators, and washing machines), brown consumer goods (mixers, grinders, iron, and fans) and electronics consumer goods (TVs, PCs, cameras, and mobile phones).

Opportunities to be a part of global consumer goods industry

Over the last 25 years, the consumer goods industry has demonstrated high growth in comparison with other goods industries. Continuously increasing demand of consumer goods across the world is drawing attention of manufacturers, retailers, management authorities to invest in this industry. Rapid urbanization, coupled with changing lifestyle is driving demand for consumer goods from end user industries. These industries hold a high share in social as well as economic growth of the country as they create bulk employment opportunities. The consumer goods industry depends on technology by other industries to sustain its products in the market. Latest technology such as Internet of Things (IOT) is helping the consumer goods industry towards better use of data to benefit retailers and customers. Increasing health awareness is driving demand for personal healthcare products. Demand for private labeled consumer goods is attracting global manufacturers and retailers to invest more. Proliferation of social networking services is allowing manufacturers of consumer goods to advertise their products and expand their consumer base. Changing government regulations such as the government of India's relaxation of license rules and approval of 51% foreign direct investment (FDI) in multi-brand and 100% in single-brand retail are driving the growth of the consumer goods industry. Significant trade of consumer goods across the globe is also favoring the growth of this industry.

Changing lifestyle of consumers is also contributing to the growth of the consumer goods market. In 2016, North America dominated the global consumer goods market and the trend is expected to continue due to increasing health awareness in the region. The FMCG industry contributes 6% of the U.S GDP. The increasing population along with specific brand demand has made Asia Pacific the second largest market in the global consumer goods market. According to India Brand Equity Foundation, the revenue share of the FMCG industry in India has increased by 11% over the last decade. Urban markets account for the major share (65%) of the total revenue generated by the consumer durables industry in India. In 2015, revenue generated by the consumer durables industry in India was US$ 9.7 billion, which further increased to US$ 12.5 billion in 2016. There is a lot of scope for growth from rural markets with consumption expected to grow over the forecast period. Latin America is expected to exhibit significant growth in the next 10 years due to influence of the western culture and rising demands for consumer goods in the region.

Key challenges in front ofglobal consumer goods Industry

To compete in global market, consumer goods industries should be aware of all operational, marketing challenges such as,

  • Product differentiation refers to the ability of a seller to show how their product or service id different from other competitors. This is one of the major challenges faced by players operating in the consumer goods industry.
  • Adherence to various government regulations across different regions.
  • Changing consumer habits
  • Falling prices due to rise in competition is a major worrying factor for manufacturers. Companies are struggling to maintain product quality in accordance with the rising manufacturing cost.
  • Relaxation of import regulations is creating tough competition between local industries and leading brand industries.

Key global summits for consumer goods industry 

Global summits are helpful for new industries to gain knowledge because issues such as product analysis techniques, opportunities for profitable growth in the global market, retail regulations, recent trend and challenges in industries and many more are discussed by CG industry experts. For instance,

  • Retail and Consumer Goods Analytics summit 2017, Chicago.
  • 14th Annual Consumer Goods sales and marketing summit 2017, New York.
  • 61st Global summit for CGF 2017, Berlin, Germany.
  • The CGF sustainable Retail summit 2017, Montreal.
  • The Future Leader Congress – 2017, Stockholm.

Key players in global consumer goods industry

Some of the leading players operating in the global consumer goods market are Nestle SA, The Procter & Gamble Company, Unilever PLC, PepsiCo Inc., The Coca Cola Company, Imperial Tobacco Group, Anheuser Bush InBev SA, JBS SA, Mondelez International Inc., Tyson Food Inc., LL’Oréal SA, Phillip Morris International, 3M Company, Danone, Heineken N.V., Nike Inc., British American Tobacco PLC, SABMiller PLC, Henkel AG & Co. Kirin Holding Company ltd, Kimberley-Clark Corporation, Adidas AG, Whirlpool Corporation, Archer Daniels Midland Company.

The two mega mergers in the global consumer goods industry:

  • ABInbev-SABMiller and Kraft Heinz - accounted for US$ 175 billion
  • Brazil’s JBS expanded its operations to Europe with the acquisition of Moypark and Heineken, and purchasing four mid-sized businesses in emerging markets.

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Consumer Goods Published Insights

Coherent Market Insights Shavers Market

Published Date : Mar 2020

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Coherent Market Insights South America Residential Water Treatment Equipment Market

Published Date : Feb 2020

Residential water treatment applications address the household water concerns and improve water quality. A water treatment plant is a setup for water purification treatment which includes various processes such as filtration, sedimentation, and distillation as a prima... View more

Coherent Market Insights Barn Door Hardware Market

Published Date : Feb 2020

Barn doors are easy to install and require less space compared to conventional doors. Barn doors are also functional as they can be made from lightweight materials. These can be easily styled and come in a variety of designs. ... View more

Coherent Market Insights Smokeless Products Market

Published Date : Feb 2020

Smokeless products consist of tobacco or tobacco blend which can be chewed, sniffed or sucked on. The different types of smokeless products available in the market are chewing tobacco, snuff, snus, and dissolvable tobacco. Some of the ingredients used in smokeless pro... View more

Coherent Market Insights Nigeria Sponge And Scouring Pads Market

Published Date : Jan 2020

Sponge & scouting pads are widely adopted to cooking ware and kitchen utensils. Sponge and scouring pads are widely used in commercial and residential spaces, owing to their easy availability and low cost as compared to other substitutes such as dishwashers, among... View more

Coherent Market Insights Bath Bomb And Cold Pressed Soaps Market

Published Date : Jan 2020

Bath bombs are hard-packed mixture of dry ingredients, which form bubbles when it is wet and cold pressed soaps are handmade soaps, which provide more flexibility to create designs within the soap. Bath bombs and cold pressed soaps are usually considered as luxury pro... View more

Coherent Market Insights Cigars And Cigarillos Market

Published Date : Jan 2020

Cigars and cigarillos are made by tight rolling of dry fermented tobacco leaves. These are of available in a variety of sizes, category, and flavours according to the consumer preferences. Consumption of Cigars and cigarillos is a rising trend among both young and adu... View more

Coherent Market Insights Beauty And Barber Blade Market

Published Date : Jan 2020

Men’s grooming industry is growing, owing to changing perception of men towards grooming services and increasing spending on grooming products and services. Moreover, increasing awareness among men about beauty and beauty products, which has led to a growing inc... View more

Coherent Market Insights Wallpaper Market

Published Date : Jan 2020

Global wallpaper market is expected to exhibit a CAGR of 5.9% over the forecast period, owing to the wide availability of the wallpaper products. Wallpapers are available in variety of designs, surface finishes & styles such as glitter, raised ink, gels, bids, foi... View more

Coherent Market Insights Blade Market

Published Date : Jan 2020

Blade is a tool, which has application in various end-use industries such as construction, food, textile, and others. Major applications of blades include construction, food, and grooming industry. For instance, single edge blades are commonly used for shaving. Theref... View more

Coherent Market Insights Nail Polish Market

Published Date : Aug 2019

Nail polish is a type of lacquer, which is used to decorate fingernails and toenails. Nail polishes are coatings applied to nails to provide a pleasing look and to supplement the nails. In order to make nail polish flexible, peeling, and strong, various chemicals such... View more

Coherent Market Insights Coffee Beauty Products Market

Published Date : Feb 2019

The extracts from coffee beans are available in the form of coffee oil and powder. It contains significant amount of essential fatty acids, vitamin E, and sterols. Green coffee oil has high content of antioxidant, which aids skin damage such as sunburn, inflammatory s... View more

Coherent Market Insights Spa Resort Market

Published Date : Dec 2018

Spa tourism is for the purpose of relaxation, healing or beautifying of the body in spas using preventative wellness and or curative medical techniques and hence, there is a conceptual overlap between wellness and spa tourism. Spa ... View more

Coherent Market Insights Online Retail Market

Published Date : Mar 2018

Online retail is a steadily growing retail channel where consumers are able to purchase goods on online marketplaces. Growth of online retail has been triggered by certain services offered by online retailers such as product delivery, wide range of products, multiple ... View more

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