What are the Historical Developments and Current Growth Metrics of the Artificial intelligence AI In Fast Moving Consumer Goods FMCG And Retail Market?
The artificial intelligence ai in fast moving consumer goods fmcg and retail market has seen considerable growth due to a variety of factors.
• The market size for artificial intelligence (AI) in the fast-moving consumer goods (fmcg) and retail sectors has seen a substantial surge in recent years. Its growth trajectory is projected to rise from $152.06 billion in 2024 to $190.34 billion in 2025, recording a compound annual growth rate (CAGR) of 25.2%.
Factors such as expanding demand for bespoke shopping experiences, the escalation of e-commerce, surge in investment in AI and machine learning, the proliferation of mobile commerce, and increased use of chatbots are responsible for the observed growth in the historic period.
What is the Forecasted Market Size and CAGR for the Artificial intelligence AI In Fast Moving Consumer Goods FMCG And Retail Market?
The artificial intelligence ai in fast moving consumer goods fmcg and retail market is expected to maintain its strong growth trajectory in upcoming years.
• The market size of artificial intelligence (AI) in the fast-moving consumer goods (FMCG) and retail sector is anticipated to undergo extraordinary growth in the upcoming years, with the market valuation expected to reach $461.43 billion by 2029, reflecting a compound annual growth rate (CAGR) of 24.8%.
This projected increase within the forecasted period is due to factors like the expansion of online retail channels, the emphasis on AI in demand forecasting, the growing use of AI in detecting demand in real-time, the escalating utilization of AI in improving fraud detection, and the rising adoption of AI in personalized marketing strategies. Key trends for the forecast period include advancements in technology, immediate customer service, dynamic pricing strategies, visual identification, and voice-led commerce.
Which Drivers Are Accelerating Growth In The Artificial intelligence AI In Fast Moving Consumer Goods FMCG And Retail Market?
The rising popularity of online shopping is anticipated to drive the expansion of artificial intelligence (AI) within the fast-moving consumer goods (FMCG) and the retail sectors in the future. Online shopping entails acquiring products or services via the internet, typically through e-commerce platforms or mobile apps, which permits customers to explore, compare, and buy items conveniently from their homes. The surge in online shopping popularity results from its convenience, wider variety of products, competitive costs, and the growing ubiquity of mobile technology and digital payment systems. AI has found extensive use in FMCG and retail for online shopping, where it offers personalized suggestions, price optimization, advanced search features, customer service through chatbots, inventory management, fraud detection, customer behaviour analysis, personalized marketing strategies, visual search capabilities, and prediction of trends to enhance patrons' shopping experiences. For example, the Census Bureau of the Department of Commerce, a body in the USA that generates data about the country's population and economy, reported in May 2024 that retail e-commerce sales for 2024's first quarter rose 2.1% from the last quarter of 2023. Also, as per the International Trade Administration, a government entity in the USA, it was reported in September 2022 that consumer e-commerce contributes to more than $120 billion in yearly sales and comprises 30% of UK's total retail trade. Hence, the escalating demand for online shopping is fuelling the growth of artificial intelligence (AI) within the fast-moving consumer goods (FMCG) and the retail sectors.
What Are The Market Segments In The Artificial intelligence AI In Fast Moving Consumer Goods FMCG And Retail Market?
The artificial intelligence (AI) in fast-moving consumer goods (fmcg) and retail market covered in this report is segmented –
1) By Component: Hardware, Software, Services
2) By Technology: Machine Learning, Natural Language Processing (NLP), Computer Vision
3) By Application: Customer Service And Support, Sales And marketing, Inventory Management, Supply Chain Optimization, Other Applications
Subsegments:
1) By Hardware: AI-Powered Point of Sale (POS) Systems, Smart Shelves And Inventory Management Systems, Robotics For Automated Stock Management, Facial Recognition Cameras For Customer Insights, IoT Devices For Supply Chain Monitoring, Digital Signage And Interactive Kiosks
2) By Software: AI-Driven Customer Relationship Management (CRM) Software, Predictive Analytics For Demand Forecasting, Inventory Optimization Software, AI-Powered Recommendation Engines, Natural Language Processing (NLP) For Customer Feedback Analysis, Price Optimization And Dynamic Pricing Tools, Supply Chain Management Software With AI Capabilities
3) By Services: AI Integration And Implementation Services, Consulting Services For Retail Strategy And Digital Transformation, Training Services For AI Tools And Technologies, Managed Services For AI Systems And Infrastructure, Customer Insights And Analytics Services, market Research And Consumer Behavior Analysis Services, Post-Implementation Support And Maintenance Services
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What Trends Are Shaping The Artificial intelligence AI In Fast Moving Consumer Goods FMCG And Retail Market?
Major firms active in the artificial intelligence (AI) sphere within retail and fast-moving consumer goods (FMCG) sectors are concentrating on innovating solutions such as AI-empowered open commerce. This is aimed at improving customer interactions, streamlining processes, and maximizing supply chain operations, which in return will allow vendors to satisfy changing consumer requirements more effectively. AI-empowered open commerce signifies a digital commerce framework that utilizes artificial intelligence to deliver personalized, uninterrupted shopping experiences through various platforms and touchpoints, while concurrently optimizing stock, pricing, and customer engagement strategies in real time. For example, RedCloud Technology, centralized in the UK and specializing in digital transformation solutions for the retail industry, launched an AI-empowered open commerce network called Red101 in August 2024. This avant-garde platform addresses supply chain inadequacies, endorses a fairer, transparent, and secure trading environment for smaller retailers. It also fights against counterfeit goods, enabling small-to-medium-sized businesses (SMBs) to effectively compete against large e-commerce corporations like Amazon. Red101 creates a connection between fast-moving consumer goods (FMCG) brands, distributors, and local vendors in emerging markets.
Who Are the Key Players In The Artificial intelligence AI In Fast Moving Consumer Goods FMCG And Retail Market?
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
What Are The Regional Insights Into The Artificial intelligence AI In Fast Moving Consumer Goods FMCG And Retail Market?
North America was the largest region in the artificial intelligence (AI) in fast-moving consumer goods (FMCG) and retail market in 2024. 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.
