Fast-moving consumer goods (FMCG), also known as consumer packaged goods (CPG) or convenience goods, are products that are sold quickly and at a relatively low cost. Examples include non-durable household goods such as packaged foods,

beverage A drink or beverage is a liquid intended for human consumption. In addition to their basic function of satisfying thirst, drinks play important roles in human culture. Common types of drinks include plain drinking water, milk, juice, smoothie ...

s, toiletries, candies,

cosmetics Cosmetics are substances that are intended for application to the body for cleansing, beautifying, promoting attractiveness, or altering appearance. They are mixtures of chemical compounds derived from either Natural product, natural source ...

, over-the-counter drugs, dry goods, and other consumables. Fast-moving

consumer goods A final good or consumer good is a final product ready for sale that is used by the consumer to satisfy current wants or needs, unlike an intermediate good, which is used to produce other goods. A microwave oven or a bicycle is a final good. W ...

have a high inventory turnover and are contrasted with specialty items, which have lower sales and higher carrying charges. Many retailers carry only FMCGs, particularly hypermarkets, big box stores, and warehouse club stores. Small convenience stores also stock fast-moving goods; the limited shelf space is filled with higher-turnover items.

Characteristics

The following are the main characteristics of FMCGs: * From the consumer perspective ** Frequent purchases ** Low engagement (little or no effort to choose the item) ** Low prices ** Short shelf life ** Rapid consumption * From the marketer perspective ** High volumes ** Low contribution margins ** Extensive distribution ** High inventory turnover

Shelf space

Between 2009 and 2023, shelf space in the U.S. supercenters and supermarkets decreased by 5 and 3.3 percent, respectively. This reduction has intensified competition for shelf space among brands, as the number of products available has increased. Retailers often charge slotting fees to brands for product placement. While some well-established brands may avoid these fees, the average cost can range from $100 per item per store to significantly higher amounts.

Consumer packaged goods companies

Well-known CPG

manufacturing Manufacturing is the creation or production of goods with the help of equipment, labor, machines, tools, and chemical or biological processing or formulation. It is the essence of the secondary sector of the economy. The term may refer ...

companies include: *

Nestlé Nestlé S.A. ( ) is a Swiss multinational food and drink processing conglomerate corporation headquartered in Vevey, Switzerland. It has been the largest publicly held food company in the world, measured by revenue and other metrics, since 20 ...

Procter & Gamble The Procter & Gamble Company (P&G) is an American multinational consumer goods corporation headquartered in Cincinnati, Ohio. It was founded in 1837 by William Procter and James Gamble. It specializes in a wide range of personal health/con ...

* Essity * PepsiCo * Unilever * AB InBev * L’Oréal *

Coca-Cola Coca-Cola, or Coke, is a cola soft drink manufactured by the Coca-Cola Company. In 2013, Coke products were sold in over 200 countries and territories worldwide, with consumers drinking more than 1.8 billion company beverage servings ...

* Mondelez International * Mars Wrigley *

Kraft Heinz The Kraft Heinz Company (KHC), commonly known as Kraft Heinz (), is an American multinational food company formed by the merger of Kraft Foods Group, Inc. and the H.J. Heinz Company co-headquartered in Chicago and Pittsburgh. Kraft Heinz is t ...

* Heineken *

Kellogg's Kellanova, formerly known as the Kellogg Company and commonly known as Kellogg's, is an American Multinational corporation, multinational food manufacturing company headquartered in Chicago, Illinois, US. Kellanova produces and markets con ...

* Reliance * Dabur * Adani Wilmar

Rural consumers

Consumers in rural areas typically purchase goods from nearby towns and villages. A recent shift in consumer purchase behavior toward purchasing locally has prompted the need for better local promotional efforts to generate brand awareness in small towns. FMCGs play a large part in the economy, as they are inelastic products that touch every part of consumer life. Businesses that supply FMCGs to rural communities can help provide employment opportunities and reduce the cost of such products in those rural areas. For instance, FMCGs represent the fourth-largest sector in the Indian economy and generate employment for more than three million people in downstream activities.

ISIC definition

The retail market for FMCGs includes businesses in the following International Standard Industrial Classification (ISIC) (Revision 3) categories:, p.2-4 Supplier industries for FMCGs include:

References