3 Consumer goods industry trends that are disrupting the FMCG market
Written by Geoblink ·
The FMCG industry is at the precipice of change. The swift evolution of purchasing habits and the rise of cutting-edge technologies are changing the way we communicate with customers. The fast-moving-consumer-goods sector has been traditionally characterised as having difficulting adapting to these modern advancements, but the time has come for these companies to make their move—time is running out. This is why all of us at Geoblink thought it was a critical moment to reveal which 3 consumer goods industry trends are gaining traction in the market (and see how FMCG companies can benefit from them). So, without further ado, let’s begin:
1. Increase in collective consumer awareness and concern for the environment
In recent years, an increasing percentage of people have become more socially conscious about the environment and the types of food they choose to put in their bodies. These consumer goods industry trends are on the upswing and have led to the generation of two new concepts: organic products and packaging without plastic.
The 2018 report published by Mintel affirms the rising trend of consumers preferring to consume products labeled as “organic” or “natural” in both Spain and Germany as they are perceived to be better for the environment. Moreover, shoppers have taken a strong stance against the use of plastic to package products. For instance, many people in the USA are refusing to use straws for their drinks or take home their groceries in plastic bags as a means to stop using the material. Some companies have already started offering biodegradable packaging options over the past years. Now, some have even dared to become even bolder and sell “plastic free” items in their establishments only, as is the case with the supermarket chains Ekoplaza (Dutch) and Iceland (English).
A clear example of this kind of trend happening in the FMCG sector can be seen with the Danone “Original” yogurt which uses glass packaging instead of plastic
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Brazilian researchers discovered a strong correlation between sociodemographic factors such as level of studies and income, showing that those who were more educated and earned higher wages cared more about conserving the environment. The results of that study have been complemented by another performed by Chinese market analysts who found that place of residence, gender and age also greatly affected a population’s attitudes toward the environment. More specifically, they discovered that young women living in cities were more inclined to care about the environment as opposed to others.
Heat map of young women who are residents in Birmingham in the United Kingdom ranked by level of income
2. More vegetarian and vegan lifestyle choices
There has been a boom in the number of vegetarians and vegans over the past two years. The figures released by GlobalData demonstrates a 600% increase of people declaring themselves vegan in the United States alone. Similar data has been published in the United Kingdom revealing the same phenomena. For example, UK supermarket retailer—Tesco—established a partnership with the Dutch FMCG supplier, Vivera, to offer plant-based steak in their 400 stores.
The meat is said to look authentically pink after cooking it in order to meet this burgeoning consumer segment’s preferences
In-line with a survey launched in Canada, more than 50% of the vegetarian and vegan population consists of the millennial generation. Surprisingly, only a small portion of the entire consumer group is made up of baby boomers. In this sense, the companies dedicated to capturing the millennial mindshare could have a competitive advantage if their FMCG counterparts are too slow to act.
3. Growth in Virtual and Augmented Reality
Finding a way to differentiate a product from the fierce competition is challenging in this market. Your value proposition does not only have match the expectations of the target audience but the overall presentation of the product needs to catch their attention as well. Many companies dedicate extensive amounts of resources developing intricate product pitches and investing money in the creation of videos to make their product stand out. Nevertheless, emerging technologies such as Virtual and Augmented reality have made their way into the market and pose an interesting alternative for FMCG companies.
Augmented Reality appears to be the protagonist of these two consumer goods industry trends as brands learn how to create unique experiences for their customers. FMCG technology solution providers, such as Navtek, have found their niche in this by allowing their clients to create interactive characters that come to life when the product is scanned using a mobile phone.
See how Navtek is revolutionising push marketing tactics in-store for trade marketers
Carrying out digital, activation campaigns that engage customers while in-store have now been made possible with these new technologies—and they can easily be adapted to fit the realities of many different markets where an FMCG product is distributed.
Consumer goods industry trends and technology
As we have been able to observe throughout this article, the new technological trends and changes in shopping preferences will mark the future of this sector. That is why the professionals who form part of this industry need to make the right moves to incorporate them and determine which points of sale are the most strategic places to do it. Only then will these companies obtain the highest benefits and stay ahead.
It’s important to remember that the market dynamics of each point of sale is different. This means that the tactics used to boost sales and expand product portfolios should be adjusted to fit the peculiarities of each market. But identifying those (sometimes very subtle) differences can be challenging. This is where Location Intelligence takes center stage, providing accurate and precise data about the unique market contexts surrounding an individual point of sale. It’s no longer enough to just piggyback on consumer goods industry trends that have fully developed in this hyper-competitive market. To survive in this unstable environment, brands need to have the foresight to pinpoint these changes and develop their strategies ahead of time to reap the full benefits.
Would you like to know where you can find new potential clients who follow these consumer goods industry trends? Ask for a demo and discover how Location Intelligence can help you.