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FMCG Industry Expectation From 2020

The changing market dynamics bring with it an array of products that compete for customer loyalty and attention. Here is a look at the trends for the FMCG market in 2020

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FMCG industry in India has seen a remarkable transformation over the last two decades. This has been facilitated by rising income levels, urbanization and changing consumer behaviour. The general industry sentiment is positive and optimistic post demonetization and GST implementation with large players set to gain. The rural consumption has superseded industry expectation with the size of modern retail estimated to grow 3 times in the next 5 years. A significant change in lifestyle choices, as well as a substantial increase in disposable income, has fuelled this growth.

Nonetheless, the changing market dynamics bring with it an array of products that compete for customer loyalty and attention. Here is a look at the trends for the FMCG market in 2020:-


Increasing smartphone and internet penetration will help people in rural areas easily access online shopping on various e-commerce websites. Availability of easy mobile payment options has lead to an increase in the number of orders from tier 2 and tier 3 cities which enables people to get timely delivery at their doorstep.

Multiple Channels of Trade

Multiple channels of trade will help users make purchases through platforms on which they spend a lot of time like Facebook, Youtube and Instagram. This has led to a more interactive overall shopping experience as users get the best of both entertainment and shopping. Other than these traditional portals like Flipkart, Amazon, as well as supermarket apps like Grofers and Big basket, are also popular.

D2C model

D2C is a popular business model which allows buyers to get goods directly from the seller/manufacturers without the help of any middlemen. Several e-commerce websites are set for this purpose which helps buyers save money as well as time.

Brand Community

Users these days can interact with other people who have bought the same product and talk at length about it. A lot of brands are devising marketing strategies to build a brand community where they are target people who are interested in their products as well as have similar social, political and cultural factors. This makes interaction a bit more personal than it is with customer care representatives.

Foreign Brands

Big foreign brands have left no stone unturned to enter the Indian market as they have seen the huge demand for their products. This has forced local as well as domestic manufacturers to up their game and provide cheaper alternatives while not compromising on quality to offer the same sense of pride that owning a foreign product provides.

Consumer Behavior

Consumer Behavior is something that cannot be cast in a permanent pattern as it keeps changing. However, there are a few patterns which have been present for a long time bringing to our attention the ways consumers usually spend their money. After analyzing past consumer data as well as the latest one we came across these trends of consumer behaviour which will be prevalent throughout 2020. One of them is consumers buying family packs and combo offers as it saves them n extra trip to the grocery store. Other common instances of consumer behaviour are high demand of ready to eat snacks, wellness products mostly organic and premium quality products.

In order to keep up with these trends, every FMCG company must be proactive in taking these steps which ensure brand building and longevity in the market.

Build strategy around consumer preference 

It is very important to devise a brand strategy around consumer preference as the consumers today are very informed and patient when it comes to product decision making. Users these days check the ingredients of the product they are purchasing as well as its carbon footprint and health benefits.

Attractive Merchandising 

Attractive merchandising is paramount when it comes to the sale and purchase of products. In this highly visual world, consumers only go for what they like upon seeing. Once your product has caught their eye they will certainly try it and if they like it they will go for it again so make sure the packaging on display is impeccable.

Optimize Marketing efforts 

An adequate digital strategy is needed to target customers who have performed a search for products that your brand offers. With so much data available it is imperative to hire a team for analyzing the current market demand for your products and then generate authentic leads to convert them into sales.

Market Intelligence and Consumer Insights

Any brand or company cannot stay in the market for long if it has not done a thorough research of the same. A company who is aware of the prevalent pattern will mostly make a decision in its benefits than otherwise. This will save them a lot of money as they will be able to get the right number of products out in the market for direct consumption especially if the shelf life of their products is not long.   Organizing consumer insights into data points help companies predict the future consumer pattern and soar above their competitors.

Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house. Unless otherwise noted, the author is writing in his/her personal capacity. They are not intended and should not be thought to represent official ideas, attitudes, or policies of any agency or institution.

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year ender 2019 what to expect in 2020

Amrinder Singh

The author is Director, Bonn Group of Industries

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