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Fast-Moving Consumer Goods (FMCG) Industry: Definition, Types, and Profitability

investopedia.com · 2,077 words · saved by 1 readers

Gordon Scott has been an active investor and technical analyst or 20+ years. He is a Chartered Market Technician (CMT). Fast-moving consumer goods are products that sell quickly at relatively low cost. These goods are also called consumer packaged goods. FMCGs have a short shelf life because of high consumer demand (e.g., soft drinks and confections) or because they are perishable (e.g., meat, dairy products, and baked goods). These goods are purchased frequently, consumed rapidly, priced low, and sold in large quantities. They also have a high turnover when they're on the shelf at the store. Investopedia / Nez Riaz Consumer goods are products purchased for consumption by the average consumer. They are divided into three categories: durable, nondurable, and services. Durable goods have a shelf life of three years or more, while nondurable goods have a shelf life of less than three years. Fast-moving consumer goods are the largest segment of consumer goods. They fall into the nondurable

Table of Contents Expand Table of Contents Fast-Moving Consumer Goods Understanding FMCGs Types of FMCGs 10 Largest FMCGs Companies FMCGs and Consumer Habits FAQs The Bottom Line Definition Products that sell quickly at a relatively low cost are called fast-moving consumer goods. Key Takeaways Fast-moving consumer goods are nondurable products that sell quickly at relatively low costs. The FMCG sector contains some of the world's best-known brands and has consistently posted returns on invested capital of over 20% for decades. Examples of FMCGs include milk, gum, fruit and vegetables, toilet p

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