Fast-Moving Consumer Goods (FMCG)

AAA

DEFINITION of 'Fast-Moving Consumer Goods (FMCG) '

These are consumer goods products that sell quickly at relatively low cost – items such as milk, gum, fruit and vegetables, toilet paper, soda, beer and over-the-counter drugs like aspirin.

INVESTOPEDIA EXPLAINS 'Fast-Moving Consumer Goods (FMCG) '

Nearly everyone in the developed and developing world uses fast-moving consumer goods (FMCC) every day. They are the small-scale consumer purchases we make at the produce stand, grocery store, supermarket and warehouse outlet. FMCG have short shelf lives, so, while the profit margin on individual FMGG sales is low, the volume of sales makes up for it. The market for $3.99 orange juice is a lot larger than the market for $399 juicing machines.

The FMCG marketplace is huge and includes some of the largest companies in the world – Dole Foods Co., The Coca-Cola Co. (KO) Unilever (UL), General Mills, Inc. (GIS). As investments, FMCG stocks are a generally low-growth, but safe bets with predictable margins, stable returns and regular dividends.

FMCG accounts for more than half of all consumer spending, but they tend to be low-involvement purchases. Consumers are more likely to show off a durable good such as a new car or beautifully designed smartphone, than wax poetic about a new energy drink they picked up for $2.50 at the convenience store.

RELATED TERMS
  1. Negative Option Deals

    A dubious business practice that involves supplying a typically ...
  2. G.19 Report

    A monthly statistical report from the U.S. Federal Reserve that ...
  3. Drip Pricing

    A pricing technique in which only part of a product or service’s ...
  4. Behavioral Modeling

    Using available and relevant consumer and business spending data ...
  5. Online-To-Offline Commerce

    A business strategy that draws potential customers from online ...
  6. Zero Percent

    A promotional rate of interest used to entice consumers, often ...
RELATED FAQS
  1. How is a product line depth related to a product line?

    A company's product line depth is the number of products in the company's product line. Product Line A product line is a ... Read Full Answer >>
  2. How has electronic retailing (e-tailing) changed the consumer discretionary goods ...

    Electronic retailing has changed the consumer discretionary goods sector by increasing price transparency and product information. ... Read Full Answer >>
  3. In what manner will a recession likely affect the marginal-propensity-to-save rate ...

    The marginal propensity to save, or MPS, rises in most, though not all, recessions. This makes perfect sense on an individual ... Read Full Answer >>
  4. Why is product differentiation important in today's financial climate?

    Product differentiation is essential in today's financial climate. It allows the seller to contrast its own product with ... Read Full Answer >>
  5. How can consumer durables act as economic indicators?

    Consumer durables act as economic indicators because they signal how confident consumers are feeling about their own situations ... Read Full Answer >>
  6. Is good customer service something to look for in a company in which I am considering ...

    Investors should consider good customer service before buying a stock especially in consumer-oriented sectors. Customer service ... Read Full Answer >>
Related Articles
  1. Savings

    The Pros and Cons of Buying on Amazon

    Learn how buying works with Amazon. Amazon has become the dominant player in online retail with its ruthless focus on lower prices and customer service.
  2. Budgeting

    The Adverse Effects of Cheap Gas

    While low gas prices are welcomed, smart budgeters must anticipate future price hikes and consider the impact of low gas prices on investments and taxes.
  3. Stock Analysis

    Top Investment Ideas for Malls of the Future

    How investors should be thinking about the mall of tomorrow.
  4. Stock Analysis

    Whole Foods: How Will Shares React to Price Probe?

    Why it's important to look beyond the recent headlines about Whole Foods Market and accusations of pricing problems in New York.
  5. Stock Analysis

    What's Worth More: Walmart or Facebook?

    Which company is worth more, Walmart or Facebook? The answer may come as a surprise.
  6. Savings

    Winning Retailers Amid Sales Slump

    Declining department store retail sales and the exceptions to the rule after the end of the Great Recession.
  7. Personal Finance

    Is Etsy The New And Improved Ebay?

    Will Etsy replace Ebay as the place for young, trendy millennials to shop?
  8. Economics

    Calculating Income Elasticity of Demand

    Income elasticity of demand is a measure of how consumer demand changes when income changes.
  9. Economics

    Explaining Business-to-Consumer

    Business-to-consumer (BtoC or B2C) is a business model whereby a company sells its products directly to consumers.
  10. Savings

    Do Oil Prices Affect The Auto Industry?

    Based on an understanding of complementary and substitute goods, the American auto industry is exhibiting expected effects from the recent plunge in the price of oil.

You May Also Like

COMPANIES IN THIS ARTICLE
Hot Definitions
  1. American Dream

    The belief that anyone, regardless of where they were born or what class they were born into, can attain their own version ...
  2. Multicurrency Note Facility

    A credit facility that finances short- to medium-term Euro notes. Multicurrency note facilities are denominated in many currencies. ...
  3. National Currency

    The currency or legal tender issued by a nation's central bank or monetary authority. The national currency of a nation is ...
  4. Treasury Yield

    The return on investment, expressed as a percentage, on the debt obligations of the U.S. government. Treasuries are considered ...
  5. Bund

    A bond issued by Germany's federal government, or the German word for "bond." Bunds are the German equivalent of U.S. Treasury ...
  6. European Central Bank - ECB

    The central bank responsible for the monetary system of the European Union (EU) and the euro currency. The bank was formed ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!