Consumer Products – An Industry Which Is Considered To Be Relevant In Almost All Industries

Consumer Products  CPG

Consumer Products – An Industry Which Is Considered To Be Relevant In Almost All Industries

Consumer Products & CPG are a huge industry, with sales in India growing at over 30%. As a nation, we spend more than USD 500 billion a year on various consumer products. Most of the purchases made by people across the country can be classified under Consumer Products. These include fruits, vegetables, noodles, chocolates, cosmetics, detergents, kitchen goods, apparel, snacks and many more. The reason for this huge demand is the ever-growing middle class in this country, as well as the desire of people to live a healthy life.

The Consumer Products market has come of age in India, with major players like Hindustan Unilever, Aditya Bhati, Hindustan Herbal Products and Bhagwati Softeners dominating the market. As per the latest estimates, the Consumer Products industry will touch USD 22 billion in the next four years. This huge investment in the market by the companies has increased their global market share.

Consumer Products includes food, beverages, health & beauty, personal care and toys. Food products include processed, ready to eat, specialty and grocery products, ready made juices, snacks, bakery, confectionary and other dairy products. Beverages include mineral water, fruit juices, flavored water and tea. Health & Beauty includes skin care, personal care, bath & body care, makeup and skincare.

The Food & Beverage industry is one of the largest and fastest growing consumer products markets. The demand for consumer products like food has grown tremendously, particularly in urban communities. The increasing income levels have also helped in the development of more food processing companies. These companies provide a wide range of consumer products. They offer grocery, snacks and fast food. They also provide home delivery service.

The demand for Personal Care products like soaps, detergents, shampoos and conditioners is also on the rise. Laundry and bath products like towels, washcloths and bath robes are another segment. Some companies focus on a particular niche. A beauty company may concentrate on cosmetics while others manufacture cosmetics items for a niche market.

A Food & Beverage Company provides a large market with well-known brands. In recent years, Pizza Hut and Cold Stone have come up as household names. Pizza Hut markets itself as a family restaurant and has several different restaurants all across the country. Cold Stone markets itself as a luxury ice cream and frozen drink company. The market is also dominated by the top three companies i.e. Coffee Brands, Conagra and Yoplait.

Most Food & Beverage Companies sell their consumer products in the US. Some of the larger international Food companies like Nestle, Tetra, FRS and others have their manufacturing facilities in the US. A few of the smaller companies like Yoplait, Mars and Unilever are based in Europe. While the market share of the US based companies is gradually decreasing, there are a number of companies that have made significant inroads into the US market. These include Unilever which is a division of Unilever and sells hygiene and medical products, and Kraft who is the owner of the brand Dr. Perfum which is known for its facial cleanser range.

It is evident that there is a strong market for consumer products. However, some of the larger companies are not willing to open up their markets to other companies or sell their consumer products across the street. As a result there are a number of smaller companies that are providing a platform for new companies to sell consumer goods. These are the companies that one can rely on to deliver a consistent quality of goods and services.

With the current economic scenario and recession, many of the consumer products markets across the globe are facing stiff competition. The slowdown in the global economy has resulted in reduced sales and orders for many products including consumer goods. These companies are still recovering from the impact of the global crisis and are still working to expand their product offering and customer base. They are also working to reduce costs and increase profitability. It is for these reasons that there are many companies who are going through financial difficulties.

These companies that are facing financial problems are finding it difficult to meet their production commitments and are unable to make enough inventory to meet customer demand. Many of them are trying to reduce their cost base and sell consumer products in the market. In this cut throat scenario, it is obvious that many of these companies will miss their production target and will experience a fall in the overall volume of goods sold. As a result the consumer products market will be affected negatively. The companies which are able to continue with their operations will be able to survive and will be in a strong position to carry on with their operations as well as to deal with any adverse effects of the global economic slowdown.

In fact, even during times of financial issues, there is a huge consumer demand for consumer products. The demand for consumer products spikes during festive seasons when everyone needs to buy new things. The low price offered by the retailers at these times ensures that the customers get the items they want at unbelievably low prices. Therefore, it is clear that the consumer products market will not face any problems during these lean times.

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