FMCG products are designed as mass-produced (consumer) items for everyday life - leading to intense competition between brands. In addition, consumers often do not feel strong brand loyalty when it comes to FMCG products. Price increases, in-store placements, and out-of-stock situations are fatal here.
Constantly changing trends and consumer preferences challenge FMCG brands to keep up with these same changes.
FMCG products in particular are often price-sensitive. Consumers are correspondingly sensitive to price increases, even more so in the event of rising inflation or economic fluctuations.
FMCG brands face the challenge of reaching and serving their target customers through all relevant distribution channels (with a wide variety of requirements). Especially in highly developed markets, there is a battle for market share, which makes market entry all the more difficult for new brands.
FMCG brands must comply with various regulations, including labeling requirements, product safety standards, and marketing restrictions. Complying with these not only around brick-and-mortar retail, but also online, is a major challenge for many FMCG brands.
