• by Joe Mandese  @mp_joemandese, April 26, 2021

After receding nearly 11% in 2020, so-called fast moving consumer goods (FMCG) such as food and drink brands are poised to increase their ad spending over the next few years, albeit not so fast.

While the category will boost ad spending nearly 6.4% this year to $28.1 billion from $26.7 billion in 2020, it still won't be even with 2019's $29.9 billion, according to a MediaPost analysis of data from Zenith's just-released Business Intelligence: FMCG Food and Drink Report.

The report projects annual ad-spending growth rate of 4.4% between 2020 and 2023, reaching $30.3 billion in 2023, and fully recovering from the pandemic-related ad recession in 2020.

"A bounce-back is almost inevitable in 2021 given the comparison with the sharp drop-off in 2020, particularly during the second quarter, though it will still be 6% below 2019 levels," Zenith states, adding that FMCG marketers continue to "face uncertainty over how quickly consumers will return to shops, and how much their behaviors have been permanently affected by the pandemic."

“Ecommerce will be the key battleground for FMCG brand growth over the coming years,” Zenith Head of Forecasting Jonathan Barnard added in a statement. “Western brands should look to China for best practice in using digital communication to drive FMCG ecommerce sales.”