The FMCG industry is comprised of the fastest-growing consumer goods in the market. Think of products that are cheap and sell fast and that are essential for everyday use by businesses and households.
These companies are composed of different departments that work together to provide the best outcomes for the consumer. We are going to see the different approaches that FMCG companies take in their day-to-day operations to stay on top of their high demand.The FMCG industry is undergoing a significant transformation in response to the COVID-19 pandemic and changes in customer behavior. Check out the current trends!Click To Tweet
FMCG INDUSTRY TRENDS 2021
Due to consumer demand, FMCG companies have had to adapt to new ways of operating. When potential clients are searching for their products, they tend to lean towards companies that conform to these new trends.
Being old school is no longer an option when you are in the FMCG industry. Some of these recent trends include:
Outsourcing Some Operations
Many FMCG companies have realized the benefits of outsourcing some of their functions to outside companies. Having to perform every activity in one place comes with a lot of challenges and extra costs. When they outsource to other people, they avoid investing in certain equipment that might be costly.
Apart from outsourcing, companies have also opted to lease equipment from outside sources. Some of the most common machines rented by FMCG companies include packaging equipment like a tin can packing machine to aid in the sealing of cans for storage and delivery.
Popular FMCG Trends Post COVID (i.e. eCommerce)
Due to the covid 19 pandemic, companies have been formed to conduct their operations online.
Apart from the actual production process, you can handle most other activities through eCommerce. Having just a few individuals working your online stores and website saves a lot compared to having a physical business.
Even as the economy is retaking shape and other companies are opening up their physical branches, some FMCG companies have opted to switch to eCommerce entirely. Online operations often offset the added company costs for mandatory covid 19 protective gear for physical operations.
With modern technology, eCommerce is even a better way of reaching a broader market due to how people search for items online. Nowadays, if you want to purchase an item, the first step is to look online for that particular product. This gives a great advantage to companies that have online stores and elaborate websites.
FMCG Companies Want to be More Eco-friendly
With the rising number of environmental conservation campaigns, almost everyone is trying to do their part in this fight. FMCG companies are adapting to new sustainable standards when it comes to manufacturing their products.
Moreover, consumers are also more aware of eco-friendly items and prefer to associate with companies that conform to environmental control measures. Some certifications are awarded to sustainable companies, and this helps in making them popular among consumers.
Every company is adapting to this trend, not just FMCG companies.
Rigorous Brand Promotion
Gone are the days when you would just set up your business and wait for customers to come. In the current business market, companies are competing, and each and everyone wants to be known among consumers.
FMCG companies particularly have to engage in extensive brand promotion campaigns due to the high number of these companies. For example, if you are a manufacturer of cosmetics, the competition is obviously fierce.
So what do you do in this case? Marketing and brand promotion. There are different ways you can do this, including social media marketing and marketing events such as activations and expos.
Focus on Healthier Options
Consumers are more aware of the damage caused by unhealthy products such as refined sugars and food additives. Most food manufacturers are therefore switching to healthier options to accommodate their clients’ needs.
Instead of just regular sugar, there are healthier options such as brown sugar, and instead of the traditional cooking oil, consumers opt for olive oil and avocado oil. This is not to say that you switch to these options completely.
Balance out your production as not everyone is interested in these healthier options considering the extra costs. Keep in mind that the market is composed of different people with different preferences.
These are just a few trends in the FMCG Industry. The main goal of these approaches is to ensure that you fit in a market setup and are not left behind as others advance. Remember that the consumer comes first, and you have to do everything possible to ensure that your customers are satisfied and happy.
However, do not just switch abruptly to some of these new trends; study your market and consumer behavior first. It is also advisable to take your time to avoid any significant financial blows that might affect your company.