What is FMCG?

Posting date: 31 January 2024

FMCG, meaning fast moving consumer goods, is an industry that most people interact with every day. Encompassing a broad range of products, from toothpaste to milk to cleaning sponges, items in the FMCG industry typically have short shelf lives, and sell at low prices and in high volumes. The FMCG industry is a growing sector, with the global market expected to reach USD 111.43 billion by 2030.

The size of the FMCG sector means that FMCG recruitment covers a wide range of jobs and industries. Swisslinx have become key players in the FMCG recruitment sector and experts at finding the right people for the right roles.

What is considered FMCG?

Fast moving consumer goods covers a wide range of products. As the name suggests, these goods sell quickly, due to being either popular disposable items or goods that are used in most households relatively frequently, and usually don't cost all that much. These products typically don't spend long on store shelves, either because they are perishable or there are high levels of consumer demand.

The fast moving nature of FMCGs means that the profit model for these products generally relies on high volumes of sales, as opposed to high price points. The sector is a dynamic and shifting industry influenced by changing trends and markets.

What are the 3 major segments of the FMCG industry?

While the overall FMCG industry can be broad, it is generally divided into three core segments.  The sheer size of the global FMCG market means that dividing FMCG products into key categories can give a much better overview of industry trends and developments.

The three major FMCG groups encompass

       Healthcare and personal care products - this incorporates goods such as toothpaste, deodorants and other over-the-counter hygiene and healthcare products.

       Food and beverages - Due to the vastness of the food and beverages sector, this segment of FMCG covers a wide variety of different products. Everything from boxed cereal, to tubs of ice-cream, to cans of soda fall into this category.

       Home care goods -  everything from laundry detergent to car wash products and surface cleaners fall into this category of FMCG, meaning that this segment of FMCG alone is valued at more than USD 250 million globally.

What is the difference between FMCG and CPG?

While there is significant overlap between what are considered as FMCG and CPG, simply meaning consumer packaged goods, the key distinction between the two comes down to the speed at which they are expected to sell. Consumer packaged goods are still expected to sell quickly, however, fast moving consumer goods sell at larger volumes, at an even more frequent rate. This means fast moving consumer goods primarily include items that are bought at an average frequency of daily to weekly, rather than once a month.

Take breakfast cereal as an example. This consumer product is a staple of the weekly grocery shop for many and so would be considered a fast moving consumer good. Meanwhile, makeup products bought once every two months would be a consumer packaged good.

What is not FMCG and why?

Products in the FMCG industry are those that people use in everyday life, and so, are things that are bought and sold at a rapid rate. But, there are of course some things that don’t fit into the FMCG criteria. Someone going out and buying a new motorcycle, for example, wouldn't be engaging with the FMCG market, or the new favourite sweater in the back of the closet also isn’t an FMCG item. Simply, if something is intended to be bought and kept for a long time, it can't be part of the FMCG market.

 Some products that are not classified as fast moving consumer goods are things such as:

       Cars and other vehicles

       Clothing

       Books

       Devices such as laptops and mobile phones

All of these products are intended for long-term use and, as a result, sell at a slower pace so can not be categorised as part of the FMCG market.

FMCG recruitment with Swisslinx

With international reach, Swisslinx has become a leading body in recruitment for FMCG companies. Investing in valued members of the team, like recruitment consultant Yuliya Olonetzky, who have a deep knowledge of the sector, Swisslinx has become a leading force in matching skilled professionals with impressive organisations to grow dynamic and rewarding careers.

If you are looking to find the ultimate new position, the FMCG job space has a wide variety of rewarding roles on offer. 

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