Consumer products or also referred to consumer goods are products for consumption by the average consumer. It is also referred to as final goods as it is the end result of production and manufacturing. Basic raw materials including copper or steel are not considered as consumer goods as they must be transformed into usable products. Furthermore, retail is the process of selling consumer goods and services to customers through multiple channels of distribution to earn a profit. Tesco, Walmart, Costco, and Kroger are some of the most prominent retailers in the world.
The global consumer products and retail market is expected to surpass US$ 29.11 Tn in terms of value by the end of 2028.
Fast-moving consume goods (FCMG) and retail companies leveraging on disruptive technology is expected to propel the global consumer products and retail market growth over the forecast period. The majority of companies operating in the FCMG and retail sectors are taking advantage of new and innovative disruptive marketing techniques to expand the consumer base. These marketing activities include mobile, social, analytics, and cloud (SMAC) initiatives, which help in transforming the enterprise into a digital business. The SMAC process is continuously evolving. Innovative technologies are expected to drive the demand for consumer goods and services among companies investing in online marketing activities.
Emerging regions such as Latin America can provide major business opportunities in the global consumer products and retail market in the near future. Latin America is one of the fastest-growing regions due to the presence of Brazil, Mexico, and Argentina. The region is in close proximity to North America, which enables it to glean investments from leading FMCG players operating in North America. Major retail giants from the U.S. have already made investments in the retail industry across Latin America. Furthermore, the region is home to a large number of manufacturing facilities across various consumer goods and services.
Global Consumer Products and Retail Market: Recent Developments
Government regulations and domestic competition is expected to hamper the global consumer products and retail market growth over the forecast period. In various countries, governments have enforced stringent rules for FDI in multi-retail outlets due to regional competition and opposition from traditional consumer goods and service providers. Economies such as India, which has enormous potential for retail chain outlets, have yet to push for reforms on FDI in multi-retail format.
Global Consumer Products and Retail Market - Impact of Coronavirus (Covid-19) Pandemic
Since the outbreak of the COVID-19 pandemic in December 2019, many industries and markets have faced several challenges. The global consumer products and retail market is one of the major markets that has witnessed significant negative impact due to the pandemic. Following the pandemic, international trades and travels were suspended, which resulted in massive disruption in economic activities. Stringent regulations on physical distancing and adoption of strict lockdown policies impacted consumer products and retail market massively. There was a sharp decline in the market growth, due to temporary disruption in the global supply chain industry. However, the market is gradually recovering and is expected to regain its lost traction as many countries look forward to relax COVID-19 regulations.
To know the latest trends and insights prevalent in the Global Consumer Products and Retail Market, click the link below:
The fastest-growing economies in the world, namely India and China, are located in APAC. These economies have a large number of unorganized small and medium enterprises as compared to organized SMEs. Among all Southeast Asian countries, Indonesia is considered to be the potential manufacturing hub. The country has witnessed massive expansion by Asia-based manufacturers in production facilities. Sharp Corporation began manufacturing commercial consumer electronics appliances equipment in Karawang, while Toshiba expanded its presence by establishing itself in East Jakarta. Some of the major factors such as low labor costs, political and economic stability in the region, and large population make Indonesia an attractive destination for Japan- and Korea-based manufacturers.
After the advent of the Internet, many countries in MEA have adopted this new-age technology and Internet-enabled services. Saudi Arabia adopted the Internet in 1999 and made advances to improve science and technology. Other oil-producing nations followed suit and the demand for IT and ITes products increased, with many industry verticals finding it convenient to deploy IT-based solutions for production and manufacturing processes. In order to develop themselves into knowledge-based countries, governments in MEA are bringing in new policies to the science and technology sectors. New technological institutions and scientific research centers have been commissioned to promote research and development and innovation in order to make national economies less reliant on the oil market. Many sectors, such as healthcare, railways, process industries, FMCG industries, electronic, and gold jewelry sectors, and erstwhile technological firms controlled by state governments have become or are in the process of becoming privatized, promoting further research and development, increasing FDI, investment in new product management solutions, and joint ventures with leading multinational corporations operating in the same sector.
Key players operating in the global consumer products and retail market are Metro AG, Kroger Company, Carrefour SA, Tesco PLC, Wal-Mart Stores, Inc., Costco Wholesale Corporation, Unilever PLC, Amway, Reckitt Benckiser Group plc, Pepsi Co, Inc., Procter & Gamble, L’Oreal Group, Nestle S.A., IBM Corporation, Accenture plc, Atos SE, Hewlett – Packard Company, PTC, Inc., Centric Software, Dassault Systemes S.A., Autodesk, Inc. Gerber Scientific, Inc., SAP SE, and Oracle Corporation.
Joining thousands of companies around the world committed to making the Excellent Business Solutions.