Fruits and vegetables are products you can eat – they have no expiration dates, unlike some consumable items you buy. But they can be consumed as is or processed further to make something edible.
Fast-moving consumer goods (FMCG) is an umbrella term that describes products that are intended to be sold within a short period of time.
So do fruits and vegetables qualify as an FMCG? This blog calls into question the idea that fruits and vegetables are a type of FMCG.
Can We Consider Fruits and Vegetable Part of Fast Moving Consumer Goods (FMCG)?
Fruits and vegetables have been considered part of the concept of FMCG for a long time. However, their nature has been examined closely to see if they can be considered FMCG or not. The purpose of this paper is to argue that fruits and vegetables are considered a part of FMCG. And they should not be excluded from such.
1). They Have Seasonality.
Fruits and Vegetables are generally placed in the category of fast-moving consumer goods. This is because it differs from other foods, such as meats and grain, by having seasonality such that production cycles need to be evaluated and managed carefully. At the same time, there is a wide range of choices available: fresh or frozen; imported or domestic; organic or non-organic.
2). They Are The Small-Scale, Everyday Consumer Purchases We Make.
We buy fruits and veggies every day, often multiple times a week, and sometimes even more often than that. Our purchases of these goods are not only frequent, but they are also habitual: we don’t really think about what it is we’re buying so much as just how much of it we need to get through the week.
In addition, they are not big ticket items like automobiles or furniture. But rather they are an important part of our lives. As such, they have a direct impact on our health and well-being.
3). They Are A Necessity And Not An Option.
As mentioned above, fruits and vegetables are an important part of our diet. We can’t live without them, much like we can’t live without water or air (although it is technically possible to do so). Because they are a necessity rather than just an option, there is no option to not buy them—we must purchase these items regardless of what the cost may be. This makes them a part of Fast Moving Consumer Goods (FMCGs) because their demand is not only constant but also expected.
4). They Have Rapid Consumption.
FMCGs are items that have rapid consumption. They don’t last long and need to be consumed within a short amount of time after purchase. This is why supermarkets are always stocked with FMCGs like milk, bread, yogurt, and eggs—because people buy them on a regular basis. Fruits and vegetables also fall under this category because they spoil quickly if not eaten or are frozen immediately after purchase.
5). They Are Available In High Volumes.
FMCGs are also available in high volumes. The demand for FMCGs is so high that they can often be found at any store, and not just in specialty markets. For example, if someone wants to purchase a certain brand of soda, they can find it just about anywhere—supermarkets, gas stations, or convenience stores.
So fruits and vegetables are also available in high volumes, which makes them an FMCG. You can find them at any grocery store, farmers’ market, or roadside stand. And they are so popular that there are even pre-cut versions of many fruits and vegetables available at the supermarket—this makes it easy for people to grab a few items off their list without having to cut up all their produce themselves.
6). They Have A High Inventory Turnover.
From the marketer’s perspective, fruits and veggies are great FMCGs because they have a high inventory turnover. This means that, as soon as the fruit or vegetable is picked, it’s available for sale. So there’s no need for marketers to worry about how long their products will sit on the shelf before being purchased.
7). They Have Low Contribution Margins (CM).
The FMCG business model is to sell as many products as possible at the lowest prices possible. So, when it comes to fruits and vegetables, marketers are looking for a low CM that allows them to make a profit while still pricing their items competitively with other stores.
*Contribution Margin means the difference between the price at which a product is sold and the variable costs associated with producing it. So, if a banana sells for $0.50 and it costs $0.20 to produce, then your contribution margin is $0.30 per banana.
Wholesale FMCG Distributor for Fruits and Vegetables
Mistral Trading Company is a reliable and trustworthy wholesale FMCG distributor of Fruits, Vegetables, and other grocery items. We have a wide range of products to choose from, including apples, bananas, citrus fruits, grapes, and many more. And we provide top-notch quality control to ensure that you receive only the freshest, highest-quality products.