The fast-moving consumer goods (FMCG) industry will undergo a transformative phase in 2024, shaped by the aftermath of several global events and changing consumer dynamics. The surge in online consumer goods demand accelerated by the pandemic, is prompting FMCG companies to adopt direct-to-customer approaches and prioritise digital channels for distribution.
Concurrently, sustainability emerges as a pivotal trend, with major FMCG players aligning their strategies to meet the growing demand for eco-friendly products. This shift in consumer values, coupled with an increased focus on conscious living post-pandemic, is influencing the FMCG sector to cater to products that contribute not only to nutritional needs but also overall health. As 2024 unfolds, these trends will guide FMCG organisations in adapting and innovating to meet the evolving expectations of consumers.
Anticipated to be catalysts for business growth in 2024, the following trends are poised to significantly impact brands within the industry:
Sustainability
The sustainability trend in the FMCG industry is poised to gain further momentum. With heightened consumer awareness of climate change and environmental impacts, companies are increasingly scrutinised for their social responsibility. As a response, FMCG firms are expected to intensify efforts not only in reimagining product presentation and packaging but also in the conscientious selection of materials used in production.
Foreseen as a prominent trajectory for the upcoming year, FMCG companies are projected to expand their offerings of compostable, recyclable, and reusable packaging to meet the growing consumer demand for eco-friendly choices. This shift is not confined to the realm of food but is expected to encompass various non-food items such as cosmetics and cleaning products, reflecting an industry-wide commitment to sustainability and ethical sourcing.
Healthy snacking
The industry is expected to witness a sustained focus on conscious snacking, striking a delicate balance between health and taste. This trend is likely to be fueled by the growing preference of the working population for convenient foods that are not only tasty but also high in nutritional value.
The key drivers for this trend include the rising demand for on-the-go snacking options that are both ready-to-eat and ready-to-cook, offering a combination of flavour, health benefits, and ease of consumption. As consumers increasingly prioritise a holistic approach to well-being, the convergence of taste, health, and convenience is anticipated to define the snacking sector in 2024.
Genuineness and authenticity
In the fast-paced landscape of the consumer goods, a notable trend for 2024 centres around consumers' heightened awareness of product ingredients. With a focus on making swift and informed choices regarding nutritional content, consumers are actively scrutinising product formulations.
The prominent driver behind this trend is the growing emphasis on realness and authenticity — the values deeply cherished by today's consumers. The quest for products perceived as natural, believed to be beneficial for personal well-being and the environment, has surged. This authenticity drive manifests in an increased demand for products boasting free-from claims and streamlined ingredient lists.
Adjusting economic realities
Consumers, grappling with the repercussions of price inflation, are proactively trimming their expenditures on food and beverages. This shift toward recessionary spending habits signals a decline in buying bigger family packs and replacing it with smaller packs. However, this does not translate into a willingness to compromise on quality.
In an effort to navigate this economic landscape, consumers are adopting resourceful strategies such as minimising food waste and capitalising on promotional offers. Brands poised for success in 2024 should focus on packaging innovations to extend product shelf life. Additionally, providing personalised promotional offers tailored to individual needs will be crucial for FMCG brands in meeting the evolving preferences of budget-conscious consumers.
Artificial intelligence
In the ever-evolving landscape of the FMCG industry, AI-powered solutions, particularly Machine Learning (ML) and Natural Language Processing (NLP), are emerging as a prevailing trend, creating substantial opportunities for innovation. Notably, voice-based systems stand out, providing continuous consumer support for product exploration, coupled with recommendation engines that deliver personalised product suggestions.
The incorporation of these AI-based solutions reflects a prominent trend, enhancing the overall customer experience and contributing to heightened satisfaction and increased retention for FMCG companies.
Big data & analytics
In a dynamic shift, FMCG companies are actively harnessing the power of big data to fuel innovation and competitive edge within the industry. As consumer data becomes increasingly accessible through online shopping, brands are venturing into innovative approaches to foster stronger relationships with customers and extract valuable insights from their behaviours.
FMCG analytics serves as the driving force, delving into customer preferences and behaviours, providing companies with profound insights into their purchasing habits. The integration of big data solutions and analytics in the FMCG sector empowers brands to optimise communication strategies, ensuring more personalised experiences for customers and creating a pathway for enhanced engagement in the ever-evolving landscape.
Blockchain
In the competitive landscape of FMCG, brands are increasingly leveraging blockchain technology to establish a distinctive edge. The adoption of smart contracts and blockchain traceability emerges as a key trend, enabling FMCG companies to identify and promptly address supply chain bottlenecks.
This trend extends beyond operational efficiency, with blockchain providing enhanced transparency for consumers. Shoppers can now effortlessly trace the origins of their purchases, fostering a sense of trust and accountability. Additionally, blockchain platforms introduce cryptocurrencies and innovative loyalty programs, reshaping how consumers collect, exchange, and redeem points. This trend is anticipated to not only elevate operational efficacy but also to redefine consumer-brand interactions in 2024.
Conclusion
In this dynamic landscape, FMCG companies are poised to navigate a future marked by innovation and responsiveness to consumer needs. The convergence of sustainability, digitalisation, and heightened customer experiences forms a strategic foundation, while the e-commerce boom propels brands toward a digitally connected future.
Artificial intelligence and Big Data fuel insights, while the emerging trend of 3D Printing promises a sustainable revolution. As the FMCG industry embraces these forward-looking trends, it charts a course towards a more interconnected, sustainable, and customer-centric future in the ever-evolving marketplace.
—The author, Manish Aggarwal, is Director, Bikanervala Foods Pvt Ltd. The views expressed are personal.
(Edited by : C H Unnikrishnan)
First Published: Jan 12, 2024 10:28 AM IST
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