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. Online-To-Offline Commerce

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

    A promotional rate of interest used to entice consumers, often ...
  3. Chargeback Period

    The timeframe during which a credit card issuer can dispute with ...
  4. In-App Purchasing

    The purchase of goods and services from an application on a mobile ...
  5. Social Sentiment Indicator

    A measurement based on aggregated social media data that helps ...
  6. Marginal Propensity To Consume ...

    A component of Keynesian theory, MPC represents the proportion ...
Related Articles
  1. Home & Auto

    Tips For Maximizing The Value Of A Kitchen Touchup

    At a fraction of the cost of a remodel, a homeowner can make strategic updates to his or her kitchen that could transform this part of the home.
  2. Investing

    What's Next For Alibaba?

    Alibaba excited Wall Street its September IPO on the New York Stock Exchange. Seven months later, the e-commerce giant is still looking to shake things up.
  3. Investing News

    Facebook Money Transfer: Transforming E-Commerce

    Facebook's payment service holds huge prospects for Facebook’s business. Here’s how it works, and how it will impact e-commerce and Facebook's business.
  4. Personal Finance

    Why Are Tesla Cars So Expensive?

    What makes Tesla cars so expensive? Short supply and pricey parts is a good place to start.
  5. Investing

    Why Are Consumers In Hesitation?

    Diverging monetary policy globally and a stronger dollar continued to be key drivers of the recent underperformance and last week’s tumble in U.S. stocks.
  6. Stock Analysis

    The Key to McDonald's? 70 Million Customers a Day

    Even when it has an underperforming year, McDonald’s is still one of the most profitable companies around.
  7. Chart Advisor

    Why Now is the Time for Food and Beverage Stocks

    As volatility rears its ugly head, it's natural to investigate stable sectors such as food and beverages. Here's an appropriately-named ETF to consider.
  8. Stock Analysis

    3 Things I Learned From lululemon Athletica's 10-K

    Lululemon athletica has emerged not only as one of the nation's fastest-growing retailers, but also as one of the market's favorite growth stocks.
  9. Savings

    Why Is Deflation Bad For The Economy?

    While some inflation is good for economic growth, when prices begin to fall after an economic downturn, deflation may set in causing an even deeper crisis.
  10. Savings

    Profit From High Consumer Spending With Visa Or Mastercard

    American consumers have more money to spend thanks to falling gas prices. Investing in Visa and MasterCard may give investors more money, too.

You May Also Like

COMPANIES IN THIS ARTICLE
Hot Definitions
  1. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
  2. Asset Class

    A group of securities that exhibit similar characteristics, behave similarly in the marketplace, and are subject to the same ...
  3. Fiat Money

    Currency that a government has declared to be legal tender, but is not backed by a physical commodity. The value of fiat ...
  4. Interest Rate Risk

    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between ...
  5. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
  6. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
Trading Center