The Biggest Challenges Faced By The FMCG Industry In 2024

The FMCG industry has been facing significant challenges such as increasing consumer demand, low consumer spending power, a rise in health concerns, government regulations, and a highly competitive market environment.

Shoaib Ahmed
5 min
July 8, 2024
Biggest Challenges on FMCG

What's On This Page?

  • Introduction
  • What Is FMCG Industry?
  • How Has COVID Affected FMCG Industry?
  • What Are The Challenges Faced By The FMCG Sector In 2023?
  • conclusion
  • A little bit of Fieldproxy


The FMCG sector is incredibly fast paced. It's not just the products but the processes as well that change at an exceptionally fast rate. You have to keep ahead of the innovations in the industry (which happen more often than you think), or risk getting left in the dust.

Just for reference, the FMCG industry, in India alone, grew by over 30%, crossing the INR 4,500 Crores revenue well before March 2023. There are predictions that we might likely be seeing another 20% growth in the market this fiscal year. (Read more about the FMCG sector on our blog)

Feeling left out already? Don't worry, we've got your back. In this article we're going to take a look at what's been happening with the FMCG industry in 2023, and more so in 2024, the biggest challenges faced by the FMCG industry, and how technology is helping companies solve for these issues. Let's get started.

What Is FMCG Industry?

Let's get the basics out of the way first. FMCG Industry known as the Fast-moving customer goods involves the production and distribution of goods that are quick to consume, high in demand, and highly accessible due to their affordable prices. These are non-durable products that are sold in packaged form. To give you an example, products you essentially buy in a supermarket be it your 2 minute-Maggi packets, Dove shampoo, or even baby napkins, are all products that are a small entity of this gigantic industry.

These products have a huge turnover because they're produced and bought in large numbers and sold for cheap and affordable rates. The FMCG sector is one of the key contributors to the Indian economy and is currently the fourth largest sector of our economy.

How Has COVID Affected FMCG Industry?

The world has been hit by a deadly pandemic. People have gotten accustomed to lockdowns, isolation and have been trying to cope with the changes. Days have gone where people wait for the pandemic to get over to get back on track with their lives. Over time, sadness, grief, and anger have converted to acceptance and the world has come to terms with the new normal.

Similarly, markets and industries have been trying to meet new demands and restrictions and are desperately trying to keep their heads above the water. These industries have been hit hard by the lack of revenue and are trying to incorporate new strategies to thrive in the post-covid era. On the flip side, there have also been markets that have taken advantage of digitalization and come up with innovative methods to tackle the restrictions imposed by covid on their business.

The FMCG Industry has gone through its share of ups and downs in the pandemic. At the peak of the pandemic when grocery and other non-essential stores were temporarily closed, a lot of venues all over the world faced a reduction in revenue and decreased frequency of customers. As the vaccination drives started rising, there was a change in customers' shopping behavior and demand forecasting was needed more than ever to cater to the customer's needs.

Indian FMCG Market: Industry Analysis and Forecast (2021-2027)
Courtesy: Maximize Market Research

The FCMG industry has worked to meet consumer wants and so increase income by attempting to develop ready-to-eat and frozen meals, introducing more health care and hygiene items, and commercialising pharmaceutical goods into consumer-packed goods.

What Are The Challenges Faced By The FMCG Sector In 2024?

Proper Retail Execution

Have you ever walked into a store to get a packet of milk and ended up walking out with two bags filled with, well, everything? Let's be honest, that is usually what happens. This is most likely to have happened at a physical store, and that split-second decision to buy everything apart from your list is the result of what we call a well-drafted retail execution plan.

So, what exactly is this retail execution?

It is a form of sales strategy aimed at improving sales in the store or venue of the brand by implementing certain regulatory measures.

From an FMCG perspective, it ensures that the product on the store is how exactly it needs to be to increase revenue. A proper retail execution plan includes shelf merchandising, order replenishment, trade promotions, store audits, and more. Though driving the distribution and display promotions to contribute a chunk to sales, proper retail execution is very essential in driving the sales to new heights.

It has been reported that there has been a loss in 25 percent of sales due to poor retail execution and 79% of impulse buys occur at physical retails with a strong execution strategy. With the pandemic and lockdown, countries have been advised to shut down a majority of the shops and this has resulted in empty shelves and deserted shops. In addition, people have also resorted to buying essential supplies in bulk and stocking them.

In uncertain times, budget constraints and health consciousness have taken precedence and have changed customer perspectives on indulging. All these have led to poor retail execution planning and brands must step up and rethink their customer demands to foster a feasible retail execution plan.

Sales Automation

FMCG has been an industry that has highly depended on traditional sales practices. As the world has taken a digital turn, digitalizing field service in FMCG has become essential for running a successful brand.

With people becoming less accessible to each other, sales automation through digitalization has been prioritized over traditional sales practices. And with the loss of laborers due to several issues including migration laws and health concerns, the FMCG sector should not only ensure that the sales force gets their job done but also ensure that their work is productive, optimized.

This is why sales force automation in your field teams in important, but that's a story for another day.

A recent McKinsey report outlined that 30% of all sales tasks can be automated. Field sales automation helps in reducing the cost of sales processes by reducing the time spent on manual processes and reporting. Like Fieldproxy so,

why sales automation is essential for FMCG

Here are three reasons explaining why sales automation is essential for FMCG

  • Provides a way for a smart approach: It helps identify areas of market coverage in terms of potential and not geography. Through this way, companies can focus on meeting customer demands effectively instead of trying to crunch up their numbers.
  • End-to-end digitalization: Helps FMCG brands with end-to-end digitized sales scheduling and planning with the help of in-depth market intelligence through IoT and AI.
  • Encourages fulfilling customer experience: Fieldproxy automation puts the customer first and focuses on giving importance to their customer experience. Demand is created by identifying customer expectation.


FMCG has been a sector that depends on age-old brand loyalty. But the trick here is to identify the audience to which they cater. Being a very traditional and an old market, FMCG has a widely ranged consumer number from senior citizens to our very own millennials. Unlike certain industries that have catered to a specific set of consumers, finding the right balance to satisfy and stay relevant with a wide variety of age groups is going to be a tough nut for the FMCG industry.

The population of the older generation is on the rise, and it is expected that there will be a rise of 41% in India's elderly population over the next decade to touch 194 million in 2031. Senior citizens are often the pioneers of brand loyalty and have been the pillars of the industry. With the onset of the pandemic, their needs have shifted towards simple, reliable, and risk-free products.

To cater to such needs, FMCG brands can simplify products by making small changes while choosing the ingredients, reducing the use of chemicals, and boosting the use of natural ingredients in both food and non-food products. At the same time, attention should be given to the present generation as well.

With the millennials being exposed to a whole lot of technology and products from all over the world, there is pressure for the FMCG market to remain 'cool' enough for them to retain customers of this generation. Finding the middle ground is essential. Constantly evolving their strategies, digitalizing while ensuring easy accessibility can help strike this balance.

Environment And Sustainability

Sustainability for field service in FMCG has been a major issue in the present world. Industries have been dumping their wastes in water bodies and the amount of smoke from manufacturing plants has taken away the lives of countless animals, water species and has slowly started killing humans. As children of the earth, it is our responsibility to protect it and change our lifestyle adhering to sustainable practices.

The FMCG sector has bought its fair share of controversies by undergoing practices that degrade the environment. PepsiCo, Hindustan Unilever, Dabur, ITC, Kelloggs, Mother Dairy, Nestle are some classic examples. The youth of today are smart consumers and are looking to choose brands that have values that include sustainability. According to a report by Forbes, FMCG companies have a key role to play in curbing over a third of global greenhouse gas emissions and should invest in R&D for the same.

Adapting to sustainable ways by reducing the usage of plastic, conscious elimination of waste, adopting alternate ways of packaging, sustainable sourcing, plant alternatives are among the many ways in ensuring that companies are adhering to the environment and inculcating sustainable practices. Industries must keep the environment and sustainability at the center of their plan.

Even though FMCG industry struggle to tackle the environmental responsibility of their production, packaging, and waste management, some brands have taken initiatives to reduce the amount of degradation. Dauber has taken several steps to be environmentally responsible and has eliminated cartons from their packaging. They have also initiated recycling and reusing thousands of kilograms of waste. Brands must incorporate strategies in their supply chain management and be socially and environmentally responsible.


The Covid era has worked through its way in altering the world economy, industries, and the lives of people altogether. It's been more than 3 years since the world has thrown lemons at us and it's time to make it into lemonade! Industries must work harder than ever to renovate their strategies around changing customer demands.

Especially a customer-oriented, long-time pioneer FMCG sector must adopt new methods to survive and thrive in the post-Covid era. The biggest challenges that the industry might face have been covered in this article.

All the major solutions for these challenges revolve around digitalization and changing strategy based on customer needs. It is also the responsibility of the industry to take charge of its operations from an environmental perspective and it is up to us, the consumers to make a difference to the world by choosing the right brand wisely.

A Little Bit About Fieldproxy

As businesses expand and operations grow more complex, managing field teams can be a daunting task. From managing tickets to scheduling jobs and everything in between, keeping track of everything can be time-consuming and inefficient.

That's where Fieldproxy comes in - an end-to-end field team management solution that aims to simplify these tasks and streamline operations.

Ticket Management Solutions

One of the key features of Fieldproxy is its ticket management system. With this feature, businesses can create, assign, and manage tickets, ensuring that issues are resolved quickly and efficiently. This means that customers get the service they need, and businesses can maintain their reputation for quality customer support.

Schedule Jobs For Field Agents

Another important aspect of Fieldproxy is its job scheduling feature. With this tool, businesses can schedule jobs and assign them to field teams in real-time. This helps ensure that the right team is on the job at the right time, which can save businesses time and money.

Generate Quotes And Estimates

Fieldproxy also offers a mobile application that allows field teams to generate quotes and estimates on the go. This feature is particularly useful for businesses that operate in industries where quotes and estimates are necessary, such as construction or landscaping. With this feature, businesses can provide accurate quotes to their customers quickly and easily.

Raise Invoices And Collect Payments

In addition to generating quotes and estimates, the Fieldproxy mobile application also allows businesses to raise invoices and facilitate payment collections through integrations with popular payment gateways. This can help businesses get paid faster and with less hassle.

Collect Valuable Customer Feedback

With features like customer happiness index, and historical customer data, ensure your customers are always satisfied with your products and services. Know exactly how your customers operate and provide better quality services.

Dashboards And Reports

Fieldproxy’s easily-presentable data dashboards and reports allow managers to make sense of all the data their field teams collect, in real time.

Create, curate, and manage different dashboards and reports to help make better data-backed decisions for your service teams.

Make a data-backed decision today. Fieldproxy is trusted by 170+ clients and used by over 50,000+ agents all over the globe Click Here To Get Free Demo
Read Our Customer Success Stories

Closing Thoughts

So why should businesses consider Fieldproxy? With its comprehensive set of features, Fieldproxy can help businesses save time, streamline operations, and improve customer satisfaction. And with a free demo available, there's no reason not to give it a try.

If you're looking for an end-to-end field team management solution that can help you manage tickets, schedule jobs, generate quotes and estimates, raise invoices, and collect payments while also providing customer feedback support, then Fieldproxy might be the solution for you.

Book a free demo today to see how Fieldproxy can help your business improve its operations and customer satisfaction.

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The Biggest Challenges Faced By The FMCG Industry In 2024

Shoaib Ahmed
July 8, 2024
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