In one of my earlier posts on LinkedIn, I discussed why the FMCG market failed in 2014. Two of the primary reasons for that were the lack of market research and lack of marketing from the firms that suffered the ill fate within their first year of incorporation. Based on the 2014 Nielsen report, the FMCG sector had decreased to 1.1% from 3.8%. This information is hard to digest, and while I have my issues with the Nielsen report, it is true that new products are finding it increasingly difficult to find a foothold in the current market.
That being said, there are FMCG product launches that were a hit, and the established players in the market are growing more than ever. Many factors come into play when we consider how the FMCG market has shaped up in 2014. Based on the information available, the following trends and analysis are made of the current situation of the market.
The Cleanse Paradox
As we enter the last two months of 2014, the trend towards diet friendly consumer goods is increasing. The industry has received its fair share of criticism when it comes to packaging footprints. However, by leveraging on reduced footprint for consumer goods for diet friendly products, firms can stay afloat in a time where the global economy looks more suspect than it should.
One of the best ways to improve diet is by eating more veggies, and this has become a trend in 2014. In fact, vegetable based drinks are experiencing a boom, especially in the North American, European, and Middle Eastern markets. Statistics revealed by the Consumer Survey showed that more than 55% of global consumers are eating more vegetables than ever. Hence, the trend for vegetable based drinks, sweets, and other edibles is on the rise.
Ethnic Foods
Another growing trend in 2014 was that ethnic foods burst into mainstream while the traditional ethnic crossover products are moving away from the limelight. For example, Turkish and Lebanese kebabs have become a mainstay in France, despite the fact that kebabs were for the longest time available in the country. The $1 trillion buying power that the Hispanic consumers share in the United States will likely introduce more ethnic consumer goods into the market.
Cuisines from the Gulf, Philippines, Pakistan, India, and Malaysia are now being produced more in ‘ready to eat’ packaged goods as people are steering away from what they believe are localized versions of ethnic, exotic, and authentic cuisines. The increasing global travel is another reason why this push is prevalent. In fact, the International Air Transport Association estimates that global airline passenger count will break the 3 billion mark that, in 2013 was reached for the first time in history.
Engagement Key
Engagement remains the most powerful for new as well as established firms in the FMCG market. Consumer packaged goods are no exception to that either, as ‘making it fun’ is the tune of the year. While there have been product launches, they failed to capture the audience because of their lack of engagement. In an industry where every product is fighting with 100 others, engagement and consumer experience is what separates the winners from the pretenders.
