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New York, USA, January 27, 2021 – The rising demand for essentials, medicines, and cleaning products will propel growth in the FMCG market, aiding it to reach $15,256 billion by 2025, rising at 5.4% during 2020-2025. The rising prevalence of covid-19 among developed countries like the US has led to tremendous demand for medicines, essentials, and cleaning products. In cities like Los Angeles, the coronavirus pandemic has gripped more than one-third of the population, reaching upwards of 3 million cases in a single city. The high-load of cases has necessitated demand for painkillers, cold relievers, and other over-the-counter medication. Moreover, the high-demand for disinfectants for homes, offices, and industrial complex on a regular basis has also provided a major boost for cleaning products in the US.
According to 2020 figures released by Procter & Gamble, the demand for its home care products has risen by 30%. Other major players in the industry like Makers of Tide, and Aerial detergent has witnessed with organic sales increasing by nearly 10%. Moreover, companies like Pfizer Inc, GlaxoSmithKline Plc, and Sanofi SA, are expected to raise drug prices of over 300 drugs in the US, likely aiding profitability of medicinal products in the FMCG market. The increase in drug prices push is likely to fight-off legislations in the US guiding drug price control legislation introduced during the Trump administration.
Demand for Dairy Products like Cheese Will Offer New Opportunities for Growth
According to the International Dairy Foods Association, the demand for butter, cheese, and yogurt has hit record heights in 2020, thanks to record level of per capital consumption of dairy foods. Moreover, the demand has remained incremental since 1970s for dairy products, continuing growth for five straight decades. It is estimated that the demand for dairy products has risen by 21% since 1975. According to the association, the demand from Americans for nutritious, versatile, and innovative products remains high. Moreover, per capital consumption of food products like cheese has risen by 19% in the past decade, yogurt by 7%, and butter by 24%. The international trade dairy foods association also forecasts that the demand for products like ice-cream has rebounded, thanks to easing up of the economy amidst a positive forecast due the vaccination programs. According to the president of the association, American consumers are also changing their dietary habits, leading to a growing demand for dairy as consumers increasingly eat more dairy products as opposed to drinking them as per convention. The growing demand for dairy, the low-cost availability of dairy products, and increasing awareness about health due to the pandemic will drive major growth for the fast-moving consumer goods market.
Ready-to-Eat Meals Promise a Major Boost for the FMCG Market
According to the Food Industry Association (FMI), American consumers are spending increasingly on ready-to-eat meals, takeaways, leading record growth in the industry. FMI estimates that Americans are spending 54% of their food dollars into eating food away from home. Moreover, despite 8 in 10 dinners eaten at home, people continue to order home, with proportion of home-prepared meals for evenings continues to fall. FMI numbers suggest that on average, 4.5 dinners are prepared at home, per week, declining from 4.9 in 2017. Moreover, only 28% households prepare six or more nights in making home-meals. On the other hand, 28% prepare meals three nights per week. Rise of food delivery companies, growth in retail trends for ready-to-eat meals, and addition of new products like seafoods, will drive major growth for the FMCG market in near future.
Demand for Cosmetics to Remain High as Emerging Markets Drive Promising Prospect
Demand for cosmetics industry will likely drive major growth for the FMCG market in near future. The rising urbanization and rise of skin-related illnesses, and growing demand for protection from UV-layers will drive tremendous growth for the market in near future. Moreover, the market is also witnessing growth in disposable incomes in Asia Pacific, Middle East, and South America. This will likely drive demand for natural-based herbal products, high-end western cosmetics, among others. The rising entry of women in the workforce will also be a major driver of growth in the FMCG market. The market also continues to witness shifting consumer behaviour, as easy-to-open packaging, and easy-to-remove makeups for working women continue to remain popular.
The Demand for Office Supplies Remains a Challenge Amidst Growing Digitalization
Rising digitalization has remained a major challenge for growth for niche products like office supplies. The key goods in this arena including markers, pens, and pencils continue to witness downfall in demand, as rising virtualization in offices, schools, colleges, and industries continue to lessen dependence on traditional documents. However, despite falling demand in the sector, new products like tablet-based pens, virtual conference screens, and smartphone-based pens continue to create new opportunities. Apart from rising digitalization, and lockdowns among educational institutes, the demand for conventional stationery continues to face major challenges. However, the overall demand in the global market will likely remain stable, as emerging nations in Asia Pacific continue to bolster supply of traditional stationery, thanks to growing industries like media, and print. Moreover, the rising demand for publishing in emerging nation will also drive major growth for the FMCG market in Asia Pacific region.
Demand for Baked Goods Promise New Opportunities for Growth
The demand for baked goods globally amounted to $296.4 billion in 2013. This figure witnessed a major increase in 2017, rising to $352.8 billion. Moreover, demand in key markets like the US remains robust, and countries like China continue to play an ever-increasing role in the global market for baked goods. In 2013, the US baked goods market was valued at $54.6, and rose to a $58.6 billion in 2017. The growing demand for naturally baked ingredients, growing demand for confectionary products, and rising use of dairy remain strong drivers of growth in the US baked goods market. Moreover, high-quality products, like Canadian goods witnessed an even higher demand in the US. For example, Canada’s baked good exports to the US rose at an 10.7% CAGR between 2013-2017, amounting to over $2.4 billion in 2017. The growing demand for baked goods in the US, and high-quality premium baked goods remain a major impetus for growth in the Fast-Moving Consumer Goods (FMCG) Market.
The FMCG Market Report is segmented as below:
Segmentation by Product Type: Food & Beverage, Health Care, Personal Care, Home Care
Segmentation by Distribution Channel: Grocery Stores, Supermarkets & Hypermarkets, E-commerce, Specialty Stores
Segmentation by Region: North America, Europe, Asia Pacific, Latin America, Middle East & Africa
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