Drastic shifts in population, migration of population, and opening of new markets are enhancing the ever-growing demand for consumer goods to meet the changing needs of consumers globally.
Globalization is happening everywhere at a very great pace including value-oriented products and private label products. Retailers such as Wal-Mart, Carrefour, Metro, Aldi, and Tesco are becoming all over the world.
Some markets which are considered smaller than the Brazil, Russia, India and China are becoming global giants. The main reason behind the growth is the strong presence of middle class in the consumer goods market.
The consumer goods market in North America is continuously growing due to younger households and families with more number of children. As pets are becoming popular in households, the pet market in the sector is becoming main growing area. With this, the consumer goods companies in the US are facing strong competition from new retailers coming from Europe and Asian countries.
Europe is also having sustainable growth in the market, with the shift of consumer goods companies focus from price to quality. As the companies are searching for new strategies to become stronger in the market, they found that in place of loyalty cards and promotions, consumers are choosing quality and latest products with 'value for the money'
The consumer goods market in Asia Pacific is as big as the region it is. Here, China is one of the main potential markets with great population. The global retailers entering in the market here find great growing opportunities as well as strong competition from the retailers present in the market.
Consumer goods market in Russia is fragmented outside the major cities due to scattered population. In spite of this, competition is very fierce here, local politics is very strong and consumers are getting more active due to increase in their spending power and benefits from outside competition. Consumer goods companies should look out for new strategies to include products showing the different tastes, ways of living, entertaining, and spending power of the Russian consumers.
Consumer goods companies are becoming more and more active nowadays focusing more in making their products look more fresh and attractive in the market. Manufacturers who can differentiate themselves based on market conditions, consumer preference, and shopping behavior can only grow and prosper in the market.