The world around us is constantly changing. The rapid development of technology, consumer demand, and unfortunately, the COVID-19 pandemic are causing many industries to undergo significant transformations. FMCG companies, as one of the largest sectors of the economy, are not exempt from these changes. Consumer behavior is also evolving, with a focus on convenience. Their expectations of companies are continuously rising. Any conscious company that aims to offer the highest quality to its customers and gain a competitive edge must implement modern solutions. Many of these solutions focus on improving customer service quality, but they also address sustainability in packaging, products, and digitalization. What trends can be observed in the FMCG market?

FMCG Companies and Sustainability
Consumers are becoming increasingly conscious of environmental protection and climate change. This, in turn, leads them to seek out companies that prioritize ecology when making purchasing decisions. So, what are they focusing on? First and foremost, they choose companies that offer products in recyclable or reusable packaging. Another important aspect is the ingredients—more and more consumers are paying attention to their origin. This applies not only to food products but also to cosmetics and cleaning supplies. FMCG companies offering vegan products are well-positioned to meet the demands of this growing group of customers. However, products and packaging aren’t everything. Consumers are also drawn to brands that are socially active and engaged, running campaigns that highlight the importance of sustainability today.

Customer Experience (CX)
In an era of fierce competition, companies across all sectors face the challenge of convincing consumers to choose their offerings. This task is made more difficult by the fact that consumers are becoming increasingly demanding and harder to surprise. As a result, businesses are focusing on significantly improving the customer experience, offering not just a product but engaging or entertaining the customer. Building trust and loyalty is also critical. While acquiring a customer is difficult, retaining them and securing their loyalty is even harder. Hence, there is an increasing investment in improving customer service quality, as well as in marketing that utilizes cutting-edge technologies such as Virtual Reality or AR filters. Personalization and automation also play a key role in high-quality service, enabling companies to closely track and analyze consumer behavior while encouraging further purchases.

Digitalization
Today, there is no need to convince anyone that digitalization has changed our daily lives and behaviors. It has also significantly altered the relationship between brands and customers across various industries. Thanks to modern solutions, technologies, and above all, the omnipresent internet, customers can interact with brands through numerous online channels. Social media plays a significant role, but emails, web, and mobile applications are equally important. Through widespread digitalization, brands now have the ability to provide omnichannel customer service and offer desired solutions. Digitalization ensures seamless connections between brands and consumers (assuming it is done well), fostering long-lasting relationships and two-way engagement. It has also contributed to another trend, which you will read about in the next section…

FMCG Companies and E-Commerce
Each year, the share of sales from online commerce grows. The COVID-19 pandemic had a significant impact on accelerating online sales and changing consumer habits. It can be said that the pandemic fast-tracked a trend that had already been growing for several years—allowing people to shop and take care of many tasks without leaving their homes. This has had a profound effect on many industries, particularly FMCG companies, which had to adapt. With a strong online presence, they can reach consumers not only by offering sales through e-commerce or social media but also by building relationships with potential clients, especially in the B2B segment of the FMCG market. According to numerous studies, while some industries saw a decline in sales during COVID-19, demand for essential FMCG products increased.

Big Data and Analytics
Big data refers to large sets of valuable data. Although processing and analyzing these datasets can be challenging, the resulting insights can influence many important processes. Collected data is used by banks, websites, and companies, including FMCG firms. As one can easily guess, gathered and processed data allows for innovation, thus increasing competitiveness in the market. These datasets help examine and analyze consumer preferences and behaviors to better understand them. This understanding is crucial for optimization and offering enhanced experiences or customer service. Big data, digitalization, and e-commerce in FMCG are interconnected and complement each other.

Artificial Intelligence (AI)
Artificial intelligence (AI) encompasses solutions such as machine learning and natural language processing, which are becoming increasingly popular in the FMCG industry. Similar to digitalization, e-commerce, and big data, AI solutions help to introduce and enhance many processes, especially in customer service. One such example is the chatbot, a fully automated system that enables personalized marketing, offers solutions that interest customers, and builds relationships. Such solutions significantly increase conversions and revenue for companies. Another type of chatbot is the virtual assistant, which is used across various channels depending on the FMCG company.

FMCG Companies and Direct Distribution
Direct distribution is a popular and still-growing channel in many companies that helps attract and retain loyal customers. This is especially evident in FMCG companies that rely on close relationships, like Pilot International. This form of distribution ensures customer loyalty and the continuous acquisition of new customers. Both online and offline channels are used for direct distribution. In the case of B2B-focused FMCG companies, trade shows are a popular offline channel. It’s important to note that direct distribution is heavily supported by modern technologies, applications, and systems, such as CRM programs.

3D Printing
3D printing is a trend in FMCG closely related to sustainability. Across the globe, vast amounts of waste are generated from various products, including food, chemicals, and more. Therefore, every industry faces the challenge of finding alternatives to harmful packaging. 3D printing allows for the development of packaging using environmentally friendly materials while also reducing plastic use. This technology also offers other benefits—lowering costs, shortening production time, and minimizing material waste.