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Opportunities and Threats to FMCG Industry: Online Advertising to Drive Growth of Global FMCG Industry by 2021

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Published on : Apr 29, 2016

ALBANY, New York, April 29, 2016: The report, titled “Opportunities and Threats to the FMCG Industry in 2021: A Global Executives Survey,” studies the global FMCG industry and examines areas that are expected to register the most significant cost increments by 2021. Through primary and secondary research methods, the report assesses various consumer concerns and evaluates the effectiveness of advertising channels in future. The report is particularly helpful for organizations in the FMCG industry to optimize their business operations and streamline their product portfolio. 

Fast moving consumer goods, better known as FMCG, refer to products that are sold quickly and at relatively low costs. While household products including food items, over-the-counter medicines, cleaning and laundry products, and personal care goods constitute the majority of the FMCG industry, products such as stationery, plastic goods, and consumer electronics are also categorized under FMCG products. The global FMCG industry is highly dynamic, with key market players focusing on innovative marketing strategies. The introduction of e-commerce has significantly affected the industry as companies are stressing on making the most of online distribution channels.

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Analyzing the key growth opportunities for the global FMCG industry, the report points out that managing rising ingredient costs and complying with legislative changes will be the key to success for FMCG companies in the next five years. The growing concerns about pollution and lifestyle diseases among consumers have emerged as an opportunity for the market players to maneuver their product positioning strategies. There is significant scope for growth for market players by investing in healthy or ‘better for you’ products. Marketing claims regarding natural, pure, and fresh products are expected to remain as tried and tested methods for attracting customers. 

The report projects that new legislations and regulations will have a moderate impact on the global FMCG industry. In the next five years, social media and video sharing websites will be the popular advertising channels for FMCG companies. Innovations in online advertising are expected to be the defining feature of advertising by 2021. While market players are expected to invest majorly in naturally sweetened products, data analytics budgets of FMCG companies are anticipated to rise by 31%.  

With the help of this report, new as well as existing market players can improve their product portfolio by understanding the concerns and health issues of consumers. The report describes the supply chain existing in the global FMCG industry with focus on the areas that are expected to witness significant increase in cost. Views of survey respondents on awareness about various FMCG brands will be helpful for organizations to improve their promotional strategies through the most effective advertising channels.

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