PBI has drawn on WealthInsight’s research to analyse a specific industry which plays a major part in driving high net worth wealth creation. This month, PBI looked at fast-moving consumer goods (FMCG) in Italy, Spain, Australia, the United Kingdom and the United States.
The FMCG sector is incredibly varied and products within the industry can range from confectionery, ready meals, toiletries, home cleaning items and even electronics. Typically, it is dominated by large corporations, which either focus on single product areas, such as L’Oreal or Nestle, or can span several different products, such as Proctor & Gamble.
While the profit margin on these products is relatively small, due to the large amount of product sold at a time, the accumulative profit is substantial.
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Two crucial aspects of the FMCG industry are speed and reliability. The products need to be able to be consistently producing their respective items at considerable pace to have a strong level of availability. In addition, creation must be reliable and ready for sale. Every chocolate bar or bottle of shampoo has to be exactly the same as the one before it. This has led to an increasing usage of machinery in the process to increase efficiency through speed and reliability.
Launching or changing a product takes an amount of time through development, market research and product positioning. All of this is required to attract consumers and make certain that their product is attractive to the market. Another key aspect to this is advertising, which the FMCG industry uses often.
Key Geographies
Countries that excel in the FMCG market are ones with solid infrastructure and effective, but cheap, workers. Countries with those aspects are what draw investors in.
Italy has a vibrant and profitable FMCG industry and in the top five industries for wealth creation. 7.1% of high net worth individuals (HNWIs) and 7.2% of ultra high net worth individuals (UHNWIs) created their wealth in this sector. Between 2008 and 2012, the number of HNWIs in this industry actually increased by 4%. According to WealthInsight, Italy also hosts the richest individual who works in FMCG.
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By GlobalData| Name | Wealth (US$bn) | Industry | City of Residence |
| Mr Michele Ferrero | 25.4 | FMCG | Monte Carlo |
| Mr Augusto Perfetti | 3.3 | FMCG | Bioggio |
| Mr Giorgio Perfetti | 3.0 | FMCG | Bioggio |
Spain’s FMCG industry remained stable in a period where many industries suffered. Between 2008 and 2012, industries such as financial services and energy fell 26.8% and 20.1% respectively. However, FMCG actually grew by a slight 1% in the same period. 6.1% of HNWIs and 8.2% of UHNWIs create their wealth in the sector.
| Name | Wealth (US$bn) | Industry | City of Residence |
| Mr D. Leopoldo Del Pino y Calvo-Sotelo | 1.3 | FMCG | N/A |
| Mr Manuel Fernandez Sousa-Faro | 0.3 | FMCG | Galicia |
Australia has a strong FMCG presence with 4.4% HNWIs and 6.3% of UHNWIs making their fortune in this industry. In addition, the strength of the sector increased by 10% in the five years up to 2012.
| Name | Wealth (US$bn) | Industry | City of Residence |
| Ms Angela Bennett | 1.2 | FMCG | N/A |
| Ms Lynette Erceg | 0.9 | FMCG | N/A |
| Mr Terrence Elmore Peabody | 0.7 | FMCG | Queensland |
The United Kingdom’s HNWI population has a small but solid presence in the FMCG market with 4.3% of HNWIs based in this industry. The richest individual in the UK, Kirsten Rausing, is the owner of the world’s leading food processing and packaging solutions company.
| Name | Wealth (US$bn) | Industry | City of Residence |
| Ms Kirsten Rausing | 5.1 | FMCG | London |
| Mr Mitesh Devshi Jatania | 0.9 | FMCG | London |
| Mr Anthony J. Green | 0.3 | FMCG | N/A |
The United States has some of the wealthiest individuals in the world within this industry. Four of the top five individuals gaining their wealth through FMCG are from the United States. Those four, including three owners of the global confectionery manufacturer, Mars Incorporated, hold most of the FMCG wealth in the country, but 3.3% of HNWIs make their wealth through similar means.
| Name | Wealth (US$bn) | Industry | City of Residence |
| Ms Jacqueline Badger Mars | 24.1 | FMCG | Virginia |
| Mr John Franklin Mars | 24.0 | FMCG | Wyoming |
| Mr Forrest Edward Mars Jr. | 24.0 | FMCG | Wyoming |
