The year 2022 saw multiple changes in the FMCG industry. Since the COVID-19 pandemic, many businesses have experienced an increase in yearly profits, while others have had to change their business models to remain competitive. Thanks to digitalization, the customer is now in charge, making it possible to instantly compare an endless number of goods.
However, you may have missed a lot if your company doesn’t have an engaging and comprehensive internet presence. This is why consumer goods businesses must optimize their marketing plans and brand awareness to keep customers loyal and returning for more. With that in mind, here’s how the FMCG industry is changing in 2023 and why businesses must move ahead with the times.
More Transparency
In 2023, customers will be more curious about the products they want to purchase, their origins, and how they are manufactured. As a result, companies are emphasizing their social and environmental effect while being more open about their raw materials and production methods.
By following this trend, you can ensure your company remains transparent with everything, in turn achieving brand loyalty. Furthermore, doing so will also increase the likelihood that customers will trust your business and purchase more products in the foreseeable future.
Innovation in E-Commerce
E-commerce is not a new concept. However, it still has some room for innovation. We anticipate more businesses utilizing technology in 2023 to make online shopping even more convenient, including chatbots driven by artificial intelligence.
In fact, more and more businesses will implement augmented reality to ensure that customers test out products before they make a purchase decision. The evidence of this trend lies in a study where online grocery purchases increased by 17% in the US alone in 2022. So, if businesses catering to the FMCG industry want to stay relevant in 2023, they must keep up with the latest innovations in the world of e-Commerce.
More Plant-Based Products
The popularity of plant-based products is rising as consumers search for better, more sustainable food choices. This trend is anticipated to intensify over the next 12 months, whether plant-based meat substitutes or dairy-free milk. In fact, in this study, plant-based food purchases have increased by 54% over the last three years, signaling a boom in the industry.
This can be an opportunity and a downside for the FMCG industry: an opportunity for businesses looking to stay ahead of the curve and a downside for those that fail to change with the times.
Sustainable Packaging
Sustainable packaging is a growing trend as more and more customers become conscious of their purchases’ effects on the environment. Businesses are looking for methods to use less plastic and other non-biodegradable materials and more eco-friendly materials in their packaging.
According to the 2022 Global Buying Report, 66% of consumers think it’s essential to buy products packaged in environmentally friendly materials, and 70% of consumers consider themselves environmentally conscious. However, if companies catering to the FMCG industry fail to adjust to this trend, they risk losing out on potential sales.
Wrapping Up
Companies in the FMCG industry must remain innovative and flexible to stay competitive and satisfy customer demands in a complex and quickly changing environment. Ultimately, you might require new business strategies or recruits with a new viewpoint on business and the FMCG sector to remain successful in a constantly evolving field.
