Artificial Intelligence (AI) in Fast-Moving Consumer Goods (FMCG) and Retail Market Report 2024

This Artificial intelligence (AI) In Fast-Moving Consumer Goods (FMCG) And Retail market report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The artificial intelligence (AI) in fast-moving consumer goods (FMCG) and retail market size has grown exponentially in recent years. It will grow from $122.0 billion in 2023 to $152.06 billion in 2024 at a compound annual growth rate (CAGR) of 24.6%. The growth during the historic period can be attributed to several factors such as the rising demand for personalized shopping experiences, the expansion of e-commerce, increased investment in AI and machine learning, growth in mobile commerce, and the growing use of chatbots.

The artificial intelligence (AI) in fast-moving consumer goods (FMCG) and retail market size is expected to see exponential growth in the next few years. It will grow to $370.11 billion in 2028 at a compound annual growth rate (CAGR) of 24.9%. The growth during the forecast period can be attributed to several factors such as the expansion of online retail channels, increased focus on AI for demand forecasting, greater use of AI for real-time demand sensing, more deployment of AI for enhanced fraud detection, and the rising adoption of AI for personalized marketing campaigns. Major trends expected in the forecast period include technological advancements, real-time customer service, dynamic pricing, visual recognition, and voice commerce.

The increasing popularity of online shopping is anticipated to drive the expansion of artificial intelligence (AI) in the fast-moving consumer goods (FMCG) and retail sectors. Online shopping involves purchasing products or services over the Internet through e-commerce sites or mobile apps, offering consumers the convenience of browsing, comparing, and ordering items from home. The surge in online shopping is fueled by factors such as convenience, a broader selection of products, competitive pricing, and the widespread use of mobile devices and digital payment methods. In the FMCG and retail sectors, AI enhances online shopping through personalized recommendations, pricing optimization, improved search functions, customer support via chatbots, inventory management, fraud detection, customer behavior analysis, targeted marketing campaigns, visual search capabilities, and trend forecasting to elevate the shopping experience. For example, in May 2024, the US Census Bureau reported a 2.1% increase in retail e-commerce sales for Q1 2024 compared to Q4 2023. Additionally, in September 2022, the International Trade Administration highlighted that consumer e-commerce in the UK accounts for over $120 billion in annual sales, representing 30% of the total retail market. Consequently, the rise in online shopping propels the growth of AI in the FMCG and retail sectors.

Major companies in the artificial intelligence (AI) sector within the fast-moving consumer goods (FMCG) and retail industries are focusing on developing cutting-edge solutions, such as AI-powered open commerce, to enhance customer experiences, streamline operations, and optimize supply chain management, helping retailers better meet the evolving demands of consumers. AI-powered open commerce is a digital commerce model that uses artificial intelligence to provide personalized, seamless shopping experiences across various platforms and touchpoints while optimizing inventory, pricing, and customer engagement strategies in real time. For example, in August 2024, RedCloud Technology, a UK-based company specializing in digital transformation solutions for retail, launched Red101, an AI-powered open commerce network aimed at revolutionizing e-commerce for millions of distributors and small businesses. This platform addresses supply chain inefficiencies, promoting more transparent, fair, and secure trading for smaller retailers. It also combats counterfeit goods, helping small-to-medium-sized businesses (SMBs) compete more effectively with large e-commerce players like Amazon. Red101 connects FMCG brands, distributors, and local merchants in emerging markets.

In January 2022, Algonomy, an India-based software company, acquired Linear Squared for an undisclosed amount. This acquisition aims to enhance Algonomy's solutions for the consumer packaged goods (CPG) and grocery retail sectors. Linear Squared Ltd., based in Sri Lanka, specializes in AI-powered demand planning and forecasting for the retail and CPG industries.

Major companies operating in the artificial intelligence (AI) in fast-moving consumer goods (FMCG) and retail market are Walmart Inc., Google LLC, Microsoft Corporation, Nestlé S.A., PepsiCo Inc., Procter & Gamble Co., Amazon Web Services Inc., Intel Corporation, International Business Machines Corporation, Oracle Corporation, L'Oréal S.A., SAP SE, NVIDIA Corporation, Salesforce Inc., Colgate-Palmolive Company, Sephora Inc., Zebra Technologies Corporation, Blue Yonder, Talkdesk Inc., Everseen Ltd., RetailNext Inc., TruRating Ltd.

North America was the largest region in the artificial intelligence (AI) in fast-moving consumer goods (FMCG) and retail market in 2023. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the artificial intelligence (AI) in fast-moving consumer goods (FMCG) and retail market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the artificial intelligence (AI) in fast-moving consumer goods (FMCG) and retail market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Artificial intelligence (AI) in the fast-moving consumer goods (FMCG) and retail sectors involves the use of advanced algorithms and machine learning technologies to enhance various aspects of these industries. AI is employed to optimize supply chain management, predict consumer preferences, personalize marketing strategies, manage inventory efficiently, and improve customer service through chatbots and virtual assistants.

The primary components of AI in FMCG and retail include hardware, software, and services. Hardware refers to the physical devices and equipment that support and implement AI technologies and solutions. This encompasses servers, processors, sensors, cameras, and other computing hardware that enable data collection, processing, and analysis. Key technologies used include machine learning, natural language processing (NLP), and computer vision, which are applied in areas such as customer service and support, sales and marketing, inventory management, and supply chain optimization.

The artificial intelligence (AI) in fast-moving consumer goods (FMCG) and retail market research report is one of a series of new reports that provides artificial intelligence (AI) in fast-moving consumer goods (FMCG) and retail market statistics, including artificial intelligence (AI) in fast-moving consumer goods (FMCG) and retail industry global market size, regional shares, competitors with an artificial intelligence (AI) in fast-moving consumer goods (FMCG) and retail market share, detailed artificial intelligence (AI) in fast-moving consumer goods (FMCG) and retail market segments, market trends and opportunities, and any further data you may need to thrive in the artificial intelligence (AI) in fast-moving consumer goods (FMCG) and retail industry. This artificial intelligence (AI) in fast-moving consumer goods (FMCG) and retail market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The artificial intelligence (AI) in fast-moving consumer goods (FMCG) and retail market consists of revenues earned by entities providing services such as inventory management, supply chain optimization, and fraud detection. The market value includes the value of related goods sold by the service provider or included within the service offering. The artificial intelligence (AI) in fast-moving consumer goods (FMCG) and retail market also includes predictive analytics tools, inventory management systems, visual recognition systems, and personalized marketing platforms. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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