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The metaverse in FMCG market size is forecast to increase by USD 2.85 billion at a CAGR of 26.35% between 2023 and 2028. In the rapidly evolving digital landscape, the market is embracing the metaverse as a new frontier for business growth. Brands are trialing things in this environment to boost consumer engagement and drive conversions. The metaverse offers unique opportunities for upselling and cross-selling through mixed reality experiences. However, the operating model for FMCG players in this space requires careful consideration, particularly in the mobile segment. Privacy and security concerns are also paramount, with blockchain technology emerging as a potential solution. As more brands enter the metaverse, FMCG companies need to stay abreast of trends and challenges, including the integration of advanced technologies like mixed reality and blockchain, to maintain a competitive edge.
The Metaverse, a collective virtual shared space created by the convergence of multiple technologies including augmented reality (AR) and virtual reality (VR), is revolutionizing the consumer goods and services (FMCG) industry. This computer-generated space, accessible through multiverse platforms on mobile and headset devices, is becoming a new frontier for business transactions. With increasing internet penetration and electronic commerce, the Metaverse offers a unique opportunity for FMCG companies to engage with customers in a more interactive way. In the Metaverse, customers can purchase goods and services using various payment methods, creating a seamless shopping experience.
Moreover, the virtual world, inhabited by real people, is not just limited to video games and digital objects. It's a place where businesses can create branded experiences, host events, and even sell non-fungible tokens (NFTs). The Shopkick survey reveals that 73% of consumers prefer shopping in virtual worlds for the stronger engagement they offer. However, with the rise of the Metaverse comes the risk of cyber threats from hackers. FMCG companies need to ensure security measures to protect their virtual assets and customer data. The Metaverse, with its advanced technology, offers a promising future for the FMCG industry, but it's essential to navigate its challenges carefully.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The computer segment is estimated to witness significant growth during the forecast period.In the global metaverse market for Fast-Moving Consumer Goods (FMCG) in 2023, computers held the largest market share due to the increasing internet connectivity. Desktops, as small, versatile devices, continue to be popular among users, despite the widespread mobile access. The significant amount of time spent online is primarily attributed to computers, as they offer faster and more stable connections compared to mobile devices. Metaverse platforms in the FMCG sector enable customers to browse a vast selection of products, compare prices, and complete transactions from the comfort of their desktop computers. This trend is expected to persist throughout the forecast period.
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The computer segment was valued at USD 510.30 million in 2018 and showed a gradual increase during the forecast period.
North America is estimated to contribute 47% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growing number of FMCG brands entering the metaverse platform is the key driver of the market. Metaverse platforms are revolutionizing the e-commerce landscape, particularly for Fast-Moving Consumer Goods (FMCG) brands. Brands, especially beverage manufacturers, heavily rely on eye-catching labels and branding for sales.
Furthermore, by integrating with 3D metaverse platforms, FMCG companies can create more engaging shopping experiences for consumers. Alcohol brands, in particular, are utilizing these platforms to boost brand awareness. Moreover, this metaverse platform showcases the company's alcohol products through digital ambassadors, offering consumers a unique and interactive shopping experience.
Strategic imperatives taken by FMCG players in the metaverse market is the upcoming trend in the market. The Metaverse market in the Fast-Moving Consumer Goods (FMCG) sector is experiencing a significant increase in the presence of cosmetic brands.
Furthermore, brands are capitalizing on Multiverse Platforms, to launch NFT collections of their products. For instance, many players unveiled their CryptoCosmetics NFT collection selling digital artworks of its cosmetics on this platform. This platform offers a virtual tour of the UK's Kew Gardens, providing consumers with an experience and enhancing their awareness of the plants used in herbal cosmetics.
Privacy and security concerns over the metaverse a key challenges affecting the market growth. In the rapidly evolving digital landscape, the metaverse, encompassing Multiverse Platforms, presents novel opportunities for businesses, particularly in the Fast-Moving Consumer Goods (FMCG) sector.
However, the nature of metaverse platforms, accessible via computer, mobile, and headset, raises significant privacy concerns. With increasing internet penetration and electronic commerce, the collection and processing of vast user data are integral to the metaverse experience. Yet, this data can be vulnerable to hackers, posing a potential threat to user privacy. However, information gleaned from social networking accounts and smart gears can be exploited, emphasizing the need for data security measures.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Alphabet Inc.: The company offers solutions for metaverse in FMCG, such as Google Glass, Google Cardboard, and the Daydream VR headset.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
In the evolving digital landscape, the metaverse is transforming the way businesses operate, particularly in the Fast-Moving Consumer Goods (FMCG) market. The metaverse, a collective term for multiverse platforms including computer, mobile, and headset platforms, offers a unique blend of physical and virtual worlds. This technology, which includes augmented reality (AR) and virtual reality (VR), is revolutionizing the customer experience. Despite the excitement, concerns around security, such as hacking, loom large. Internet penetration and electronic commerce are driving the adoption of these platforms for B2B, B2C, C2C, and C2B transactions. Goods and services, including payments, are increasingly moving into the virtual world.
Moreover, brands are leveraging this technology to offer product visualization, enabling shoppers to make educated decisions and trial things before purchasing. The metaverse is also home to non-fungible tokens, digital objects, and virtual worlds populated by real people. This stronger engagement is leading to higher conversion rates, upselling opportunities, and improved customer experience. However, challenges remain, such as ensuring a secure operating model, addressing fraud, and maintaining consumer confidence. The mobile segment is expected to dominate, with blockchain and mixed reality technologies playing crucial roles. Despite these challenges, the future of FMCG in the metaverse is promising. Further, a recent Shopkick survey revealed that 73% of shoppers prefer an in-store experience for clothing purchases, highlighting the importance of fit and quality. E-commerce systems are addressing these concerns by offering virtual try-ons and returns, enhancing the shopping experience. The metaverse is set to redefine the FMCG industry, offering new opportunities and challenges.
Further, the rise of computer platforms, mobile platforms, and headset platforms is transforming the retail landscape, especially for clothing companies. With AR and VR technology and mixed reality technology, customers can now browse, experience, and buy products from the comfort of their own homes. This shopping experience not only provides greater knowledge of customers but also allows retailers to tailor their offerings more effectively. Consumers can easily browse, choose, and click to buy items, enhancing convenience. However, retailers must also consider the impact of return rates that can arise from online purchases. To counteract this, upselling strategies can be employed during the shopping experience. A seamless user interface on desktop websites and mobile applications, combined with a reliable internet connection, ensures that customers can engage with the brand effectively, driving sales and improving customer satisfaction.
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Market Scope |
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Report Coverage |
Details |
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Page number |
135 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 26.35% |
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Market Growth 2024-2028 |
USD 2.85 billion |
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Market structure |
Concentrated |
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YoY growth 2023-2024(%) |
20.49 |
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Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
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Performing market contribution |
North America at 47% |
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Key countries |
US, Germany, China, UK, and Japan |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Alphabet Inc., Autodesk Inc., Decentraland Foundation, KINAHANS META, Matterport Inc., Meta Platforms Inc., Microsoft Corp., NVIDIA Corp., Tencent Holdings Ltd., and Unity Technologies Inc. |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Platform
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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