How did the FMCG industry perform in 2021 after a record-breaking 2020?
The impact of COVID-19 on the take-home FMCG industry was one which resulted in double-digit value growth globally in 2020. But at the start of 2021, we were unsure what to expect for the industry.
We knew this extraordinary growth was an effect of the restrictions on movement around the globe and not a trend. Double-digit growth was not expected at a global level for an exceptionally long time – if ever again – and certainly not in 2021. We had no visibility on:
Last year we forecast was that post-pandemic, value growth would slow down to just over +2%. That is almost exactly what happened with the industry: we saw that global FMCG growth slowed to +2.1% (a growth rate much more in line with pre-COVID levels).
So, why the shift? Well, the reality was that much of growth in 2020 was due to out-of-home consumption occasions moving to in-home. For manufacturers and brands in the food and drinks sector they actually saw a fall in value. Therefore, it’s vital we look at a combined ‘in-and-out’ view to get the full picture – and we will be sharing an update of this.
As always there are nuances by region, market, sector, and category. Throughout this report, we will explore all these different lenses to see the biggest winners and losers from the last 12 months.
A trend which is already impacting shopping behaviour in 2022 is the rising level of inflation across multiple markets. We will share thoughts on this important topic, and close with some forecasts for how the FMCG industry and channel landscape will evolve this year.
This sixth edition of Winning Omnichannel will give you the most comprehensive global view – across 50 markets – of how the dynamics of FMCG and retail transformed in 2021. We want to thank our partners, GfK and Intage, for sharing their data and insight to enable such global coverage.
As always, this paper should function as your go-to guide on how the FMCG industry performed. It will help you quantify what to expect in the year ahead, show how you can manage risk against inflation, and ultimately how you can prepare for business success, armed with the latest business insights.
