FMCG involves many industries such as food, beverages, cosmetics, detergents, batteries, toilet paper, etc. Typical fast-moving consumer goods include daily chemical products, food and beverages, tobacco, etc.; over-the-counter drugs (OTC) in medicines can also usually be classified as this category.

The characteristics of the fast-moving consumer goods industry are mainly manifested in: low market concentration, many and scattered retailers; wide customer distribution, low loyalty, short consumption cycle; fast market demand changes, low predictability; many and complex channels, traditional formats (distributors, department stores, mom-and-pop stores) and modern emerging formats (chain stores, supermarkets, hypermarkets) coexist; production and raw material supply are relatively concentrated. These characteristics require that the supply chain must have a fast response speed and strong synergy, and manufacturers must keep abreast of changes in consumer demand information and quickly meet consumer needs. The supply chain of the fast-moving consumer goods industry is a complete chain from raw material procurement, product processing, packaging, transportation, distribution, retail to the end consumer.

Internationally, especially in some developed countries, most of the links from FMCG raw material production, processing, packaging, transportation, distribution, sales to after-sales service have adopted or are introducing supply chain management to improve the efficiency and benefits of the entire operation chain. It is understood that in China, although there is huge room for development in this industry due to the advantages of a large population and huge consumption, due to the late start of supply chain management, enterprises lack optimized management concepts and tools, especially information management tools. For a long time, there has been a disconnection between upstream and downstream, and even between internal departments of enterprises in many business links, resulting in slow speed of affecting market demand, high operating costs and low benefits, which directly affect the competitiveness of the entire industry. As international multinational companies in the industry implement global development strategies, they are optimistic about the huge "cake" of China‘s FMCG production, constantly grabbing the domestic FMCG market, setting up procurement centers, processing and manufacturing centers and sales centers in China, and constantly strengthening their brand strategy and market penetration in China, such as Kraft, Nestle, Pepsi, Coca-Cola, Unilever, Procter & Gamble, etc.

With the rapid development of my country‘s economy, people‘s living standards have been significantly improved. A well-off life has been initially achieved nationwide, and a wealthy life has been achieved in some developed areas. This improvement in living standards will inevitably lead to changes in consumption structure, such as a rapid decline in the Engel coefficient, a decrease in the proportion of food and daily necessities consumption expenditure in the total consumption expenditure, and a large increase in the consumption of automobiles, housing, and luxury goods. These changes will inevitably affect the development of the fast-moving consumer goods industry. Taking the dairy industry as an example, as of **, the growth rate of development has shown a trend of slowing down and entered a platform period of development. However, as of 2024, this situation does not mean that the dairy industry will usher in a recession, and product upgrading is very necessary.

The 2023 edition of the China Fast Moving Consumer Goods Industry In-depth Research and Market Prospects Analysis Report released by the Industry Research Network believes that after people‘s living standards improve, the proportion, content and methods used for their own development, leisure enjoyment and other consumption will continue to increase, and the demand for leisure products, high value-added goods and services will increase. From the perspective of the global dairy market, the market demand for traditional products such as fresh milk and cream is gradually declining, while specialty dairy products such as cheese, yogurt, ice cream, fast food pizza and cheeseburgers are or have become an increasingly important part of the dairy market. However, the structure of my country‘s dairy products is not reasonable enough, and the phenomenon of similar product varieties is very prominent. Various manufacturers mainly produce traditional dairy products such as ultra-high temperature sterilized milk, pasteurized milk and milk powder, while the production and supply of varieties such as cheese and butter are very small. American raw milk is used to process liquid milk, which is used to process other dairy products. Although the production growth of yogurt, cheese and milk beverages in my country‘s dairy industry has been very prominent in the past two years, the overall pattern has not changed.