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FMCG Industry Business Confidence Report 2019:Globally, the existing economic environment is stable for the FMCG industry, according to 39% of respondents. Meanwhile, 37% felt that current economic conditions were favorable for the FMCG industry. Fast-changing lifestyles among middle-class consumers and their tendency to buy quality products is another positive contributing factor, as are increasing overall per capita household spending, the implementation of digitalization techniques along the procurement and distribution cycle, and growing e-commerce prominence. Furthermore, 51% of respondents expect a positive change in consumer confidence over the next 12 months (February 2019-February 2020). Globally, surveyed executives anticipate a 3.8% rise in the price of raw materials. Regulatory concern and increasing tax burdens are viewed as the most pressing worries for FMCG companies over the next 12 months.
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GlobalData’s "FMCG Industry Business Confidence Report 2019", examines executives’ opinions on the business environment during 2019-2020. It also covers existing economic conditions, supplier price variations, sales performance, industry and company growth outlook, spending patterns, and key priorities. Additionally, the report provides information categorized by region.
What else does this report offer?
- Current state of the global economy: examines prevailing economic conditions globally and across various regions
- Company and industry growth outlook: provides industry executives’ expectations towards the growth prospects of their company and the industry over the next 12 months
- Change in customer confidence: analyzes FMCG industry executives’ opinions on changes in customer confidence during 2019-2020
- Supplier prices projection: determines expected change in supplier prices across various categories and their impact on business confidence
- Change in staff headcount and sales performance: tracks expected change in staff headcount and sales for 2019-2020 among industry executives globally as well as regionally
- Significant investment activities: highlights various areas in which industry executives intend to spend and invest over the next 12 months
- Business concerns: provides information on potential business concerns for 2019-2020, as indicated by survey respondents
- Key priorities: identifies the top priorities of industry executives operating in various regions.
Scope
- The highest percentage of respondents view the current state of the global economy as stable in terms of its impact on the FMCG industry
- Overall, supplier prices for ingredients are expected to rise by an average of 3.9% over the next 12 months
- Executives indicated that “green” initiatives will see the highest increase in capital expenditure during 2019-2020, followed by new product development
- Surveyed executive showed more optimism towards their companies’ growth prospects than the industry’s growth prospects over the next 12 months
- The majority of respondents with business operations in Asia-Pacific pinpoint exchange rate volatility as the most critical concern for FMCG companies during 2019-2020.
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Reasons to buy
- Helps organizations to make effective business strategy decisions through the provision of information on prevailing business conditions and sentiment within the FMCG industry
- Organizations will be supported in business expansion decisions through the provision of information on projected change in sales performance, staff headcount, and supplier prices
- Helps executives to make informed decisions for the organization through the provision of insights into key priorities and the main concerns within the FMCG industry over the next 12 months
- Helps with investment allocation by allowing the reader to understand key focus areas for 2019-2020, as highlighted by survey respondents.
Important key points of this research report:
Introduction
Definitions
Methodology and sample size
Respondent profile
Economic state, growth prospects, and consumer confidence
Existing economic environment
Industry and company growth outlook
Expected change in consumer confidence
Supplier prices, staff headcount, and sales performance
Supplier prices outlook
Anticipated change in staff head count and sales projections
Anticipated change in spending on key activities
Business concerns and organizational priorities
Level of concerns and expected impact
Significance of potential business priorities
Appendix
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