Fast-Moving Consumer Goods are well-known commodities of everyday use. These are comparatively low-cost products that are sold quickly because of their frequent use. These products include bread, milk, fruits, vegetables, and medicines, among others.
The packaging of a product is as important as the product itself. As it’s been said that “a book is known by its cover,” the same is the case with products. In a highly competitive business environment, every organization shows sincere interest in choosing the best packaging for their product to differentiate it from its rival companies’ products. Most customers buy a product by its inspiring packaging, words, or graphics displayed on it; therefore, it is crucial to choose the appropriate design for a product’s packing.
In the year 2020, FMCG producing organizations are set to follow a new trend of smart packaging. The primary reason for the increase in packaging business is that companies are under pressure to introduce new products in the market more frequently than in the past. FMCG packaging industry has become one of the fast-growing sectors in the world and is expected to rise more in the future. The FMCG Packaging market was valued at USD 711.56 billion in 2019 and is expected to reach USD 935.98 billion by 2025, at a CAGR of 4.6% over the forecast period 2020 – 2025.
With the variations in the previously known products under the same label, the packaging industry also experiences growth. For instance, Horlicks was initially introduced for all age groups. Later, it was still categorized into different types, including Horlicks for mothers, Horlicks for young children, and such. Hence, new packing was required for each kind of Horlicks.
Customers play a vital role in every organization. Their concerns are dealt with utmost care to maintain a friendly relationship with them because they act as the backbone of a business. The FMCG companies are upgrading to choose eco-friendly packaging material. Although plastic being the cheapest material with flexible molding abilities has been on top of the list for boxing, it is highly opposed by consumers due to its adverse effects on the atmosphere. Market trends are in favor of using environment-friendly paper, Plant-based packing, and bioplastics for packaging. Therefore, FMCG companies have already reduced the use of plastic.
There is a high demand for wrapping, which is secure, easy to handle, and biodegradable. According to a Flexible Packaging Association (FPA) survey of 2120 consumers, consumers placed a high value on the packaging that is “easy to store,” “easy to reseal,” and “easy to open.” Consumers also revealed that they were willing to pay more if their preferred requirements are met. The FMCG packaging industry struggles to meet customers’ needs at the minimum possible cost.
China and India are the two largest economies globally; hence, the Asian region is expected to give the maximum growth in the FMCG packaging industry in 2020. The factors mentioned above are expected to boost the FMCG market, which, in return, will supersede the growth of the FMCG packaging market.