Next year looks like it’s going to be a big one for the FMCG industry. Making full use of the latest in technology and e-commerce platforms, 2020 may be the year we all look back on as the turning point for when market trends really kicked off. Here are 3 2020 FMCG industry trends to keep you’re an eye out for:


Radically Improved Shipping Speeds

In the bad old days of 4-6-week shipping times, customers would only buy non-perishable, non-essential goods online. Things like books, toys and outdoor equipment were the most common purchases made online. As Amazon and others create unimaginably fast logistics networks, consumers will adapt to buying far more FMCGs online.

Amazon has already begun offering 2-hour delivery in several US cities and is actively promoting FMCGs to those with PrimeNow membership. As customers get used to the idea of having ice cream delivered to their doors before it melts, we feel it’s safe to assume that fewer and fewer of them will be willing to drive to their local supermarket to shop. 

Other entrepreneurs are creating similar concepts, like Robomart, an autonomous, app-controlled car that drives around a city delivering groceries and prepared food from the retailers who lease it. While a novel idea, we feel 2-hour delivery with an unlimited selection of products is more likely to catch on than waiting for the robot car to come around the corner with whatever stock it happens to have at that moment.

Millennials Will Become Big Industry Influencers

Millennial consumers are seeking out new brands that they perceive as innovative product lines and have their own distinct FMCG demands. They prefer to research products by sharing information with their peers online and are much more influenced by peers than a mass-brand channel approach.

Not only do these under-35s have their own distinct identity, they have the funds too. Along with the popularity of e-commerce amongst millennials, there will be increased scope for smaller brands and digital challenger brands in 2019 that resonate with millennial consumers online.

The Growth Of E-Commerce

By 2020, e-commerce revenues are expected to be more than $4 trillion US. That’s a lot. More digitally savvy consumers will spend more time online and messaging apps will also be increasingly used within the context of sales and marketing.

E-commerce is growing four-times faster than offline sales, with global online sales predicted to double within the next five years. By 2022, FMCG e-commerce is forecast to make up around ten to twelve percent of global FMCG sales, creating a $400 billion US opportunity – according to the Nielsen FMCG e-commerce report. As e-commerce penetrates FMCG, competition intensifies, and the importance of clicks and bricks means that FMCG businesses will need to adopt an omnichannel approach.