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Fast Moving Consumer Goods (FMCG) Packaging Market Growth

By Bharatbook Subscribe to RSS | June 25th 2012 | Views:
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The Fast Moving Consumer Goods (FMCG) Packaging Market 2012-2022

As the global FMCG packaging market undergoes regional shifts and demographic changes, the industry is likely to experience several challenges. Sluggish growth in mature North American and Western Europe markets pose challenges to FMCG brands. http://www.bharatbook.com/market-research-reports/consumer-goods-market-research-report/the-fast-moving-consumer-goods-fmcgpackaging-market-2012-2022.html

With the success of private labels controlling an ever increasing proportion of shelf space and offering good value to budget constrained consumers, FMCG brands need to find solutions to increase their added value through packaging and product innovations in developed markets. While emerging markets, with their rising average household income and large population size are showing unprecedented potential for the FMCG packaging market. FMCG packaging manufacturers will have to adapt sizes and target both the lower income segment of the population in emerging market and its growing middle class. It calculates that the global FMCG packaging market will total $485.4bn in 2012.

Growth will be uneven across regions, while developed markets are maturing; emerging markets will be pivotal for the industry growth. Growth regions grouped under acronyms such as BRIC's and CIVET's (Columbia, Indonesia, Vietnam, Egypt, Turkey) are experiencing rapid increase in disposable income which translates into higher consumer spending in cosmetics, food and beverage sectors.

Similarly, changing demographics of the world population and population ageing is likely to drive growth in the healthcare FMCG packaging market while impacting FMCG packaging in term of design and consuming habits. Although the FMCG packaging market is set to grow over the next decade, there remain several headwinds that need to be tackled.

The economic downturn has impacted consumer's way of spending in developed markets. With price focused consumers and increasing raw materials price, FMCG packaging companies are forced to lower margins. In the mean time, innovation continues to drive growth in these margins pushing up cost in research and development.

Digitalization is also impacting the way FMCG products are consumed. Consumers are more informed and share their experience about brands on social networks. Marketing and communication are not limited to packaging support anymore but now encompass a whole new online dimension where packaging is likely to become the physical portal.

Other trends impacting FMCG packaging such as increasing demand in healthy and organic food but also of ethnic food, rising importance of recyclable eco-friendly material, increasing use of smart packaging technologies are all part of the numerous trends affecting FMCG packaging discussed in this report.

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