The 2024 markets of FMCGs were slow. There was an increase in the sales but it was largely due to an increase in prices and not an increase in demand. Volume was in the majority of categories flat or down. Consumers cut down on expenditure due to continuous inflation between the geographical locations. Retailers were rationalizing inventories by year end and manufacturers were resetting. Consumer caution was high even as the cost of raw material and energy stabilised. The business started anticipating a change of priorities.
Five main trends that in 2025 will dominate in FMCG sales
Growth based upon price is not sufficient anymore. Firms are switching off pricing power to moving back to volumes. The essence categories are back with a twist with emphasis on food, hygiene and home essential care. The top strategies include value packs, targeted promotion and digital engagement. International buyers are turning to be picky. They consider prices very closely, down-trade when necessary and desire easy access. In 2025, growth will only rely on the relevance, efficiency, and execution on the demand side.
Volume once again in the picture
In 2025 we have a repetition of volume-driven strategy in the leading FMCG markets. The current situation where companies are experiencing volume erosion in a number of categories has come up less than two years after they used price increments to stimulate top-line growth. Due to slower inflation, reduced unemployment and better pay stability in a lot of regions, consumption habits are once again changing.
In Europe packaged food and household goods are again experiencing volume growth after languishing. Loyalty offers and multi-buy offers are also being reintroduced especially in discount and convenience formats. Large packs are being re-established on shelves in North America and soon, retailers are experimenting with formats that bring more value per unit. Price sensitivity is also high in Latin America, whereas shoppers are buying more units and more regularly in staples.
Promotional depth is gaining ground in beverages, personal care as well as opinion household cleaning. The biggest producers are re-organizing funding to activate trade. Retailers are adjusting mix down the price ladder in order to rebuild demand. The in-store plans are also geared to achieve both the unit turnover and shopper re-engagement now.
The India FMCG industry is boosted by rural growth
Rural market of India has become a clear anomaly in the figures of early 2025. During Q1, FMCG value sales increased by 11% and 5 % in volume in the rural market. The categories that perform the best are food, hygiene, personal care. A good number of such products are currently enjoying an improved distribution network, value packs, and customized promotion with local and national labels.
There are three factors supporting the rural momentum. First, farm income is going up and there is government welfare, which makes people spend more. Second, access is being brought down by enlarging infrastructure (e.g. roads and digital connectivity). Third, firms are expanding direct distribution and utilizing the rural retail networks to cut on delivery expenses.
India has stable urban demand which is however, growing slower than rural demand. There is a slight increase in the sale of FMCG in small towns and tier 2-3 cities and the local preferences are the driving force behind innovation in packaging and size of the product. Hyper-local strategies are also under test to target seasonal trends and festivals and region-specific use cases, just another example of targeting the hyper-local audience.
The fast-commerce changes the urban demand
The role of quick-commerce in the sale of FMCG is becoming formal. The rapid delivery services have been reshaping the way consumers purchase daily needs in the cities in Asia, Middle East, and parts of Latin America in just under 30 minutes of ordering groceries. Shoppers buy less frequently and in smaller quantities as opposed to when they used to buy more in one go weekly.
The trend promotes one-stop shopping and impulse buying: snacks, beverages, dairy and ready to cook meals. Additional share is going to refill packs, single serve, and trial size SKUs. Brand innovation is being tested on quick-commerce platforms, too: new products are launched more and more aligned with the moment they are delivered in an app.
The local players and unicorns in Southeast Asia are going head-to-head on getting the share of urban FMCG in terms of aggressive promotions, last-mile networks, and hyperlocal fulfilment. In Saudi Arabia and the UAE, quality convenience and rapid delivery are setting new standards on what shoppers would expect. In Brazil and in Mexico, the app-led expansion efforts in the sphere of groceries redefine the needs in favor of non-traditional brands.
Major FMCG firms are reorganising their channel strategy to crystallise this change. The products are now tailored to the platforms of delivery and have different pack sizes, prices bands, and offers that are exclusive. Quick-commerce is not an outgrowth anymore, it is retail as a matter of competition.
Pressure of private labels is something that accumulates
Private label is increasing in every income. Discounters, e-commerce and supermarkets have been adding more and more of their own brand lines, particularly in the price-conscious segments. The cleaning items, the fast moving food items, and milk products are recorded to have a good consumer acceptance.
In Europe, there is an increase in the amount consumed of FMCG via the sales volume of more than 35 percent in certain markets under the volume of the selling that is privately labeled. Shelf allocation is also being boosted by retailers as they upgrade their packaging and incorporate the use of loyalty programs. In Germany, France and Spain, the trend is to promote the smart-value positioning of the private brands, as opposed to being the low-cost substitute.
In Latin America, penetration of the private label is increasing steadily as a result of inflation weariness and a transformation of retailer strategy. High end supermarket chains in Mexico and Chile are developing sub-brands of mid-tier and higher quality with stronger packaging, sourcing and apparent quality parity.
The driving force still is affordability. In most of the categories, store brands are sold at a 10-30 per cent margin lesser than national brands. They are getting considered by consumers more and more on the level of good enough alternatives at least in pantry and household segments. As retail banners have a powerful loyalty among shoppers, the lines of such own-brands enjoy improved locations and repetitive purchase corporate structures.
The FMCG producers are adapting to it by using promotion to defend critical SKUs and packaging innovation, as well as diverting promotion funds into product differentiation. The distinction between brand and retailer is getting a lot less distinct and the medium upon which to fight is price.
Asia-Pacific leads global performance
Asia-Pacific remains the engine of global FMCG growth in 2025. The region combines population scale, rising incomes, digital access, and evolving retail models. Key markets like China, India, Indonesia, Vietnam, and the Philippines are driving momentum through consumption-led growth and rapid urbanization.
In China, household spending is stabilizing after a volatile 2024. FMCG players are expanding in lower-tier cities, focusing on:
- E-commerce integration
- Community group buying
- Direct-to-consumer formats
Food, baby care, and health-positioned personal care are outperforming. Regional brands are growing with local innovation and digital promotions. Global brands compete through premium offerings and fast supply chains.
India continues to lead in volume recovery. A growing middle class, digital access, and rural infrastructure support broad expansion. Local players scale with:
- Regional distribution networks
- Affordable SKUs
- Multi-format selling strategies
Branded FMCG is growing steadily in snacks, oral care, and laundry. Companies are blending general trade, supermarkets, and e-commerce into one supply plan.
Indonesia and Vietnam show early signs of premiumization. Wellness, convenience, and functional foods are trending in urban areas. Digital grocery and social commerce help extend brand reach into middle-income households.
Asia-Pacific also leads in mobile-first shopper behavior. Payment, discovery, and delivery are all mobile-linked. FMCG brands now design full journeys for app-first users.
Convenience and care in focus
Lifestyle shifts are driving new FMCG demand patterns. Across markets, shoppers want speed, simplicity, and wellness.
Food categories like ready-to-eat, frozen snacks, and on-the-go kits are replacing home-cooked staples in urban areas. Retailers are adjusting with:
- Small-format stores
- Grab-and-go sections
- Clear shelf labelling for health
Packaging formats are changing too. Resealable, single-serve, and portable packs are popular in snacks, dairy, and baby care. These meet the needs of:
- Busy workers
- Parents
- Seniors
Health-positioned categories continue to outperform general ones. Plant-based, low-sugar, and fortified products are gaining share. In beverages, probiotics and functional claims are expanding into teas, juices, and milk-based formats.
In personal care, demand is shifting from general-purpose to tailored solutions. Formats targeting life stage, skin condition, or environment (e.g., anti-pollution) are performing better.
Retailers are also changing layout to reflect weekday buying habits. Essentials, meal kits, and quick prep items now lead front-of-store planning. Convenience is not just a channel — it’s becoming a buying standard.
Supply chain remains a top concern
Even as inflation eases, FMCG supply chains are under pressure. The 2025 focus is on cost control without compromising stock levels.
Brands are reshaping operations with:
- Regional manufacturing hubs
- Dual or multi-sourcing strategies
- Supplier diversification in high-risk inputs
Cold chain investments are expanding across dairy, beverages, and frozen categories. Shrinkage and spoilage reduction is a priority.
Inventory planning is going digital. AI and machine learning tools help forecast based on:
- Store traffic
- Promo impact
- Weather and regional patterns
Retailers and manufacturers are also sharing more live data to avoid overstocking or gaps. Stock optimization is now a shared goal, not a brand-only issue.
3PL (third-party logistics) partnerships are growing in emerging markets. These improve reach while lowering capital needs.
Shipping costs remain volatile. Fuel prices, climate disruption, and geopolitical events affect long routes. Flexibility is key. Top players build multiple delivery routes into planning models.
Sustainability is also built into logistics. In many markets, retailers demand traceable, compliant, and low-footprint deliveries. Brands that fail to meet emission or sourcing standards may lose retail listings.
Sustainability holds attention
Shoppers now expect FMCG brands to show environmental accountability. This shapes both shelf visibility and brand preference.
Packaging is the front line. Common changes include:
- Paper and fiber-based wrappers
- Refill stations in urban stores
- Use of recycled plastics
Cleaning, beverage, and beauty categories are leading refill adoption. Certifications (e.g., FSC, Rainforest Alliance, organic) are more visible on shelf.
Retailers highlight verified ESG claims on price tags and promo banners. In many regions, false green claims are under legal risk. Regulatory pressure is growing.
Key sustainability themes in 2025:
- Carbon and water usage reports per SKU
- Ethical sourcing of protein and palm oil
- Traceability across the supply chain
Some markets (e.g., the EU, Canada, Australia) now require public disclosures on emissions. Major supermarket chains use this data to select or delist products.
Sustainability is now part of trade terms. It’s not just a brand message — it determines who gets shelf space, funding, and partner support.
Retail shifts and digital spend
Retail formats are still changing fast. E-commerce has plateaued from its 2020 peak, but remains strong. Discount and convenience chains are rising.
Discounters like Aldi and Lidl in Europe, or Miniso and D-Mart in Asia, are growing fast. They offer:
- Competitive pricing
- Private label strength
- Simpler formats for speed
Convenience stores are also transforming. Many now add hot meals, fresh food, and last-mile delivery. In Japan, Thailand, and South Korea, convenience chains drive innovation.
Digital sales are stabilising — but digital spending is accelerating. FMCG brands now invest heavily in:
- Retail media networks (e.g., ads on Amazon, Instacart, Flipkart)
- Sponsored product listings
- Mobile-based loyalty and targeting
Instead of mass reach, brands focus on:
- Shopper behavior clusters
- Category-specific triggers
- Geo-based personalization
Retail media is now a key battleground. FMCG marketers are bidding for shelf space in the app, not just in the aisle.
Promotions are also becoming data-led. Manufacturers adjust deals based on:
- Stock levels
- Basket size trends
- Competitor movement
Retailers expect full-funnel collaboration — pricing, display, and media all linked. Brands that can link supply and marketing data in real-time have the upper hand.
