Gone are the days when the FMCG industry was king. In more recent times it has become evident that the industry has found itself in a rather unfamiliar position. As reported in 2018 by McKinsey, the industry study argued that the traditional fast-moving, consumer-loved industry is fading away from its former glory. This is largely due to the fact that we’re living in technological era where the Internet is King, and just about anything can be done online. Many of the former FMCG giants who heavily relied on sales through the retail sector and exports have found themselves falling behind. Resulting in many FMCG companies coming face-to-face with a new growth dilemma. It is crucial for companies to adapt and change with the environment in which they exist in order to keep up with the new technological developments that come with this digital age.

Five important development trends in the FMCG industry, as well as three key steps FMCG companies should take to stay successful have been identified:

Trend #1: The Digital Marketing Strategy

Along with the new digital age that we find ourselves in, comes many changes and advancements not only in our personal lives but in the way that businesses exist and operate. Traditional marketing as we know it no longer has the same effect it did 10 years ago. Consumers have access to all kinds of information and data just a click of a button away. The new strategy companies need to adopt is the development of a digital marketing strategy. By utilizing digital technology, companies have the ability to segment consumers by means of identifying preferences, and using that data to build specific campaigns. This data segmentation technique allows companies to target consumers in a more personal/customizable way that makes the consumer feel important.

Trend #2: The Rapid Rise of Small Brands

Over recent years, many small brands have emerged in the market. The benefit of small brands is that they can be marketed in a way that is specifically tailored to their consumers through digital channels. In addition to this, small brands also incur low operating costs and yield high margins, making them profitable if done correctly. The successful small brands attract investors, and eventually establish themselves amidst the competition.

Trend #3: Consumers Like “Healthy” Food

When branded correctly, the so-called “healthy” foods are products that are organic or contain less sugar and additives. Regardless of “how healthy” these products actually are, consumers  pursue them, as they are always thinking about the ingredients in what they buy. Companies have leveraged the market demand for “healthy” food and have found success.

Trend #4: The Internet is Everything

Ride the internet, and leverage ways to sell through the internet. Consumers are using online platforms to purchase their goods. Although other industries have jumped onto e-commerce more quickly than FMCG, the potential for future growth is endless.

Trend #5: The Development of New Retail

E-commerce and new retail will further squeeze out traditional retail in market space, and consumers will continue to push in that direction. Companies that don’t head in this direction will fall short.