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Consumer companies climb stairs of growth and investment

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FMCG and consumer goods industry
FMCG and consumer goods industry, Photo by Daria Nepriakhina on Unsplash

In the past few months, Global FMCG and Consumer goods industry has witnessed excellent traction in terms of growth and revenue. This industry-valued equivalent to $10,020 billion in 2017 and would reach about $15,361.8 billion by 2023. As per analysts, it will strike a CAGR of 5.4% from 2020 to 2025.
Huge multinationals, including Nestle, PepsiCo, Britannia, and HUL, are infusing investments in their businesses after hopes for recovery. The consumption boost and the rising demand are the primary reasons for the investment spree in the industry.

The boom in the Packaged food industry

The self-mandated lockdown has led to an increase in demand for frozen and packaged foods. The consumer goods giants have started with investments in this product line of at-home consumption goods. Most businesses like Nestle and HUL are adding “culinary, chilled, and frozen” foods to their product portfolios to capitalize on the market opportunities.

The month of September also showed a widening scope for revenue in snacks. Following this, PepsiCo has been planning to increase its investment targets in greenfield snacks. The cookie maker- Britannia’s MD, quoted the statement, “we will balance growth across key markets to deepen our reach further.”  

The analysts claim that the packaged food industry might become the 3rd largest market in the world at this pace.    

Metrics of other segments

Besides the packaged foods industry, the consumer goods industry has also witnessed robust demand in the market.   

Panasonic has witnessed a sales surge of refrigerators, air conditioners (ACs), and washing machines in the past few months. Samsung surprisingly found itself in stock out condition after high demand for televisions in some geographies.

Kimberly Clark, Whirlpool, and Reckitt Benckiser are another set of consumer care companies to bounce-back as the COVID-19 restrictions ease out.  The pent-up demand and offers on E-commerce platforms have enlarged the sales for LG’s consumer products. 

All in all, the FMCG and consumer goods industry is ready for fueling the economic activities and secure a market place once again. 

An avid learner having infatuation for numbers and finance. Also, an individual with unfiltered opinions who likes to mix the metrics of both professionalism and creativity.

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