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Fast-moving consumer goods (FMCG), also known asconsumer packaged goods (CPG)[1] orconvenience goods, are products that are sold quickly and at a relativelylow cost. Examples include non-durablehousehold goods such aspackaged foods,beverages,toiletries,candies,cosmetics,over-the-counter drugs,dry goods, and otherconsumables.[2][3][4]
Fast-movingconsumer goods have a highinventory turnover and are contrasted with specialty items, which have lower sales and highercarrying charges. Many retailers carry only FMCGs, particularlyhypermarkets,big box stores, andwarehouse club stores. Smallconvenience stores also stock fast-moving goods; the limited shelf space is filled with higher-turnover items.
The following are the main characteristics of FMCGs:[2]
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.[5]
Well-known CPGmanufacturing companies include:[6]
Consumers in rural areas typically purchase goods from nearby towns and villages. A recent[when?] shift in consumerpurchase behavior towardpurchasing 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[7] and generate employment for more than three million people in downstream activities.[8]
The retail market for FMCGs includes businesses in the followingInternational Standard Industrial Classification (ISIC) (Revision 3) categories:[9]
Supplier industries for FMCGs include:
