The Consumer Goods industry comprises of Consumer Durables, Food and Beverage (F&B), Luxury & Fashion, Personal Care and Retail. The Consumer Durables industry can be segmented into three key groups namely White Goods, Brown Goods and Consumer Electronics. The F&B industry is poised for rapid growth and comprises of packaged foods, beverages, dairy products, fruits & vegetables,meat & poultry and fisheries. The Luxury & Fashion industry comprises of apparel, shoes, sporting goods, accessories, among other goods. The Personal Care industry has an excellent growth rate in all the major markets of the world and consists of four major sub-sectors manufacturing a range of products from Face Care, Hand & Foot Care, Hair Care and Cosmetics Products. Finally, the Retail industry is the world’s largest private industry and consists of super markets, hyper markets, department stores, shopping malls, exclusive brand outlets, as well as other types of retail outlets.
The Consumer Durables Industry can be divided into three key groups, namely:
- White Goods: Refrigerators, Washing Machines, Air Conditioners, Speakers, Audio Equipment
- Brown Goods: Kitchen Appliances, Mixers, Grinders, Microwave Ovens, Iron, Electric Fans, Cooking Range
- Consumer Electronics: Mobile Phones, Televisions, MP3 Players, DVD Players, VCD Players
The largest market is the USA, followed by China, which together with other developing countries such as India, Brazil and Mexico, has experienced a strong growth in demand and will drive the development of the global consumer durables industry. The increase in demand is projected to mainly come from a growing middle-class in developing countries that demand basic appliances. Competition and price cutting are projected to increase for the industry.
Food & Beverage
Food and Beverage sector consists of: bakery; beverages (alcoholic, non-alcoholic); dairy products; fruits & vegetables; food ingredients; oils & fast; processed meat and fish; soups, pastas & rice; various packaged & canned foods as well as snacks & confectionary products. The global food and beverage industry in 2008 was worth around USD 5.7 trillion, a value which is expected to rise to over USD 7 trillion by 2014. In Europe the food and beverage industry is the one of the largest manufacturing sectors, employing over 4 million workers and accounting for around USD1.4 trillion of total manufacturing turnover in 2007, while in the US this industry is worth over USD1 trillion and growing. Asia-Pacific has also been an active F&B sector providing a vital source of raw materials and low-cost production, a lucrative arena for global expansion, and a fertile breeding ground for new companies to challenge the global market.
Luxury & Fashion
Luxury and Fashion is comprised of Clothing and Apparels, Fashion accessories, Home Decor, Beauty care, Footwear, Luxury cars, Wine, Spirits, Hotels, Yachts, Jewelry, and Watches. The value of the overall luxury market was Euro 750 billion in 2012. The global personal luxury goods market - Clothing and Apparels, Fashion accessories, Beauty care, Footwear, Jewelry, and Watches, Jewelry - was worth 212 billion Euros in 2012, up 39% from Euro 153 billion in 2009. A quarter of all consumers are now from China, which has replaced Japan as the second largest luxury market, surpassed only by the United States. The market is changing rapidly, with the strongest trends being:
- Ecommerce growing at 25%
- Leather goods and shoes are now the largest sub-sector
- Tourists increasing the market share to 40% of total spending
- Men are gaining market shares from 35% in 1995 to 41% in 2012
The personal care products industry consists of four major sub-sectors manufacturing a range of products: Face Care, Hand & Foot Care, Hair Care and Cosmetics Products. The industry has a huge market and the demand for essential products like soaps, shampoos, moisturizers and lotions is the highest. The personal care products industry is closely associated with two other industries, the health care industry and the chemical industry thus forming an important part of the value chain. It is also related to the petroleum industry as most of the raw materials used for making personal care products like Propylene Glycol and PVP/VA Copolymer are derived from petroleum products. The personal care industry had an excellent growth rate in all the major markets of the world. Since the past few years, people have become more conscious about their appearance and look, leading to a huge demand for these products in the whole world, in particular in high-growth economies such as China, Far East, Russia, Brazil, etc. The major personal care products manufacturing nations include France, Germany, Italy, Spain, United Kingdom, United States, Russia and Brazil.
The Retail Industry is world’s largest private industry and accounts for almost 10% of the GDP for most of the countries, involving about EUR 5.5 trillion sales worldwide. Developed economies like US, EU and Japan has approximately three quarters of the total sales. Retail sector itself is very wide and includes likes of super markets, hyper markets, departmental stores, malls, exclusive brand outlets, etc. According to the latest Global Retail Development Index report; India, Russia, China, Middle East and Brazil are listed as the most attractive emerging retail destinations globally. The latest trend in the retail industry is ‘Private labels’, where the retailers make better margins comparatively.