Fast Moving Consumer Goods (FMCG)

Fast-Moving Consumer Goods (FMCG) or Consumer Packaged Goods (CPG) are products that are sold quickly and at relatively low cost. Examples include non-durable goods such as soft drinks, toiletries, Over-the-counter drugs, toys, processed foods and many other Consumables. Though the profit margin made on FMCG products is relatively small, more so for retailers than the producers/suppliers, they are generally sold in large quantities. FMCG is probably the most classic case of low margin/high volume business. Fast-moving consumer electronics are a type of FMCG and are typically low priced generic or easily substitutable consumer electronics, including mobile phones, MP3 players, game players, and digital cameras which are of disposable nature. According to the Grocery Manufacturers Association, US CPG market is worth $2.1 trillion. With retail sales up about 4.9%, according to Moody’s Economy, that probably puts it at about $2.2 trillion. And, with GDP numbers from the IMF indicating that the US only represents about 21.6% of global GDP, the global FMCG market size can be projected to be more than $10 trillion; about one-seventh of the global economy. The FMCG market is still fragmented; especially in some of the fastest-growing emerging markets. Estimates indicate that less than one-quarter of global retail FMCG products sell through the Top 250 Retailers.