For everyday life: Fast Moving Consumer Goods FMCG CRM

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An industry in its own right: everyday consumer goods play by their own rules. Learn more about the Fast Moving Consumer Goods industry in the Salesfive article! 

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Short and sweet

In the consumer goods industry, another "sector" - if you will - must be differentiated and taken into account: the so-called Fast Moving Consumer Goods (FMCG). For on the one hand there are consumer goods, such as those of home furnishings and clothing, and then there are those Consumer goods for everyday use that have to be bought (very) frequently, namely the FMCG. 

Food segment & Nearfood segment

Let's think of a fast goods rotationwe intuitively think first of food and personal care or personal hygiene products. This differentiation also has a name. To Food segment According to the Nielsen classification (US market research company), this category includes food, non-alcoholic and alcoholic beverages, and tobacco products. The so-called Nearfood segmentThese include, for example, personal care products and cosmetics, detergents and cleaning agents, paper hygiene and pet supplies. 

A Statista survey shows how important it is to look at FMCG individually: Consumers in Germany spend more than 230 billion euros a year on food, beverages and tobacco products.. This in turn corresponds to a share of around 14 percent (!) of total private consumer spending. In the Nearfood segment the market volume is around 14 billion euros. In view of these figures, fast moving consumer goods can be said to be an "industry" in their own right. 

So far, so good. We already know that consumer goods manufacturers:inside have to be subdivided again. Some goods for private use and consumption have to be bought more often than others. Now we would like to take a closer look at the market structures of these goods, the FMCG. 

Structuring the market

The global players are none other than Nestlé, Procter & Gamble, PepsiCo, Unilever and Coca-Cola. Leading German FMCG manufacturers are Henkel, the Oetker Group and Beiersdorf, according to Statista. In Germany, the main shopping places for consumer goods for everyday use Discounters and hypermarkets. Discounters account for more than 40 percent of total food retail sales in Germany. 

At Food Retail there is a high concentration. Here in Germany, the following are divided four leading groups of companies about 70 percent of the market! These include the well-known large groups around Edeka, Rewe, Aldi and the Schwarz Group. Retail groups from abroad often failed because of these giants and their establishment on the German market. Growing market share on the other hand Drugstore chains in the food tradelike dm and Rossmann. 

 Not yet fully established in Germany, but still worth mentioning, is the role of the E-commerce in the FMCG sector. Here, too, the figures speak for themselves. The share of FMCG products in total online retail sales grew to around 8.7 percent in 2019. From a global perspective, Germany still has some catching up to do here, or in other words, the potential has not yet been fully exploited. Nevertheless, the possibility of Ordering groceries online is used by around 3.65 million people in Germany every year. 

FMCG Marketing

Special demands require special measures

Due to the fast turnover, FMCG also have special requirements for sellers, which should mainly be reflected in the marketing and sales strategy. The market is highly competitive, but also highly profitable. Companies therefore invest immense sums in marketing and advertising - everyone wants to stand out, everyone wants market leadership. 

According to statistics, there are alone digital advertising spend for FMCG over half a billion euros in 2021. Traditional marketing channels are used as well as digital channels, especially social media channels such as Facebook, Instagram, Google and YouTube. TV, radio and newspaper advertising still play an important role, however. 

Brand strength and brand preferences have always been, and in almost every industry are, a Success factor. It is no different with FMCG. On the contrary - these even play a particularly large role here. While this gives the established brands in the industry an advantage, it makes it all the more difficult for new players on the market. 

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