Fast Moving Consumer Goods (FMCG) is a blanket term that applies to consumer-oriented products such as processed foods, beverages, health and beauty items, household goods, electronics, clothing etc. These products are generally sold in high quantities with a short shelf life – hence the ” fast-moving” descriptor. The FMCG sector is one of the largest in the UK economy and is worth, as a whole, over £134 billion each year.
FMCG products are regularly purchased by consumers, such as food items, toiletries, household cleaning products, and other everyday necessities. These types of items can be found in nearly every grocery shop or supermarket across the country.
Regarding the UK FMCG market, food and beverages are the largest segment with an estimated value of £104.4 billion, according to the Department for Business & Trade. This is even larger than the aerospace and automotive industries combined.
The food and beverage market share is currently dominated by four major supermarkets – Tesco, Asda, Sainsbury’s and Morrisons. However, there has been a shift in recent years, with smaller retailers like Aldi and Lidl increasing their market share due to consumer demand for discount products.
Is The FMCG Market Continuing To Grow?
The UK’s FMCG market has been growing steadily in recent years, with sales revenue increasing by an average of 2.9% year-on-year, according to the February 2023 report by Nielsen. This growth is despite the fact that the number of buyers within the market has decreased slightly in the same time period, suggesting that inflation is driving increased spending from existing customers.
Inflationary pressures have been particularly noticeable in food and drinks spending, which saw an increase of 8.9% in grocery spending from 22nd April 2023 to 19th May 2023, according to a report by Barclays. This was mainly driven by increases in prices for essentials. It seems then, that while individual households may be feeling the pinch of inflation, it is ultimately leading to more spending in the FMCG market.
This increase in sales revenue has been reflected in the performance of major UK supermarkets such as Tesco and Sainsbury’s, who have seen their profits rise year-on-year due to increased sales. This suggests that while shoppers seem to be turning away from traditional supermarkets, they are still willing to pay for convenience and quality goods.
In addition to inflation driving increased spending, technological advances such as online shopping and ecommerce have also helped fuel growth within the sector. The availability of click & collect services and home delivery options mean that customers can now shop for groceries without ever stepping foot into a store – an attractive proposition for many.
Overall, it seems that the UK’s FMCG market is continuing to grow despite showing signs of a decrease in the number of buyers. Inflationary pressures and technological advances are driving increased spending from existing customers, allowing businesses to reap the benefits of higher sales revenue. A report by the London School of Economics and Political Science estimates that the UK FMCG market share will increase to 12% by 2025, which will be almost double what it currently is.
Should I Consider a Career in FMCG?
Working in FMCG can be an exciting and rewarding career. There are many job opportunities available ranging from sales and marketing to product development and supply chain management. Furthermore, FMCG companies often offer competitive salaries and generous benefits packages, which make them attractive employers. Additionally, as FMCG products are consumed by a wide variety of people from different economic backgrounds, working in the sector can provide the opportunity to gain valuable insights into consumer behaviour.
Given its size and importance to the UK economy, it is no surprise that many companies have invested heavily into research and development within the FMCG sector. This has resulted in an ever-evolving range of innovative new products being introduced to the market each year, which helps keep the industry fresh and exciting for those already working in it. It also means that there is plenty of scope for career progression – as companies look to harness emerging trends and technologies to stay ahead of their competitors.
The UK is also a global leader in food and drink research and development, boasting a variety of research universities across the country. According to the Food and Drink Federation, utilising existing digital technology could bring an impressive £55.8 billion boost to the industry in the coming decade. The government has further committed to this goal by outlining its Research and Development Roadmap for 2021 with plans to invest £22 billion into R&D annually by 2024-25. This investment provides a clear indication of the potential future success of a career in FMCG.
If you’re considering or looking for a job in the FMCG sector, Pure Staff can help you. We work with a wide range of FMCG businesses, and we can help you find FMCG jobs. See all of our FMCG jobs here.
Contact Pure Staff for Fast-Moving Consumer Goods Jobs
If you’re considering a job in Fast Moving Consumer Goods and you’re wondering how you can get started, get in touch with our experts at Pure Staff. With offices in Birmingham, Wolverhampton, and Worcester, we’re well-positioned to help job seekers find FMCG jobs across the UK.
Contact us today to learn more about our services and how we can help you find a job that matches your requirements.