The Armenia consumer goods market size was valued at $1,734.5 million in 2018 and is projected to reach $ 2,519 million by 2026, growing at a CAGR of 4.7% from 2019 to 2026. Fast moving consumer goods (FMCG) is the largest group of consumer goods with regard to production, distribution, and marketing. This includes durable and nondurable goods such as food & beverages, personal care, health care, and home care products.
FMCG products are required every day in human life. All sections of the society consume these products frequently and spend a significant portion of their income on these goods. The FMCG product group is an important contributor to the economy as these products have a quick turnover.
Consumer durables refer to commodities or appliances that are purchased by consumers and are used repeatedly or continuously over a prolonged period. They generally include large home appliances used for regular housekeeping tasks such as cooking, washing laundry, food preservation, and others. These are normally equipped with special connections such as electrical, gas, plumbing, and ventilation arrangements, and thus, limits the mobility of appliances around a house. Consumer durables also include small appliances, which are portable and generally used on platforms such as counter-tops and tabletops. Some of the small appliances are air purifiers, humidifiers & de-humidifiers, blenders, clothe steamers & iron, electric kettle & coffee machines, and others.
The rise in purchasing power and growing disposable income among Armenian consumers has driven the demand for Armenia consumer goods market products. Consumers are opting for products that provide convenience, efficiency, and save time. With the rise in number of working populations, these products tend to attain higher demand. In addition, fast-moving consumer goods (FMCG) are relatively low-cost, fragile, perishable in nature and easily available due to which they are sold quickly. These factors are likely to drive the Armenia consumer goods market.
However, the Armenian economy consists of monopolies/oligarchies, which obstructs smooth functioning of the marketplace. It leads to market distortions, market power abuse, persistent market entry barriers, and absence of economic competition for goods and services. In addition, the Eurasian Economic Union’s (EAEU) complex system of standardization is highly redundant. This causes major hindrances in dealing with custom authorities in Armenia and hampers the trading process.
Conversely, the government is taking initiatives to encourage new entrants and investments in the country. They announced the removal of previous administrative and custom barriers to drive international players. E-platforms such as “Select Armenia” have been created, which presents Armenia’s investment opportunities and export potential in its “Invest Armenia” section. These initiatives by the government can create Armenia consumer goods market opportunity.
According to Armenia consumer goods market, the consumer goods is segmented based on product type and distribution channel. By product type, the market is classified into fast moving consumer goods (FMCG) and consumer durables. FMCG products are further divided into food & beverages, personal care, health care, and home care. Among these, the food & beverages segment leads the market with maximum share in terms of revenue. However, the health care segment is expected to experience high demand in the market during the forecast period. Consumer durable products are further categorized into refrigerator, air conditioner & heater, entertainment & information appliances, washing machine, kitchen appliances, cleaning appliances, and others. The retail trade in Armenia is gradually moving from small and medium stores to large supermarkets and hypermarkets. Hence, supermarkets & hypermarkets accounted for the highest market share in 2018. However, e-commerce channel is experiencing growth at a rapid pace owing to increase in internet penetration and convenience of online shopping.
By Product Type
Consumer durbales segment would exhibit the highest CAGR of 7.3% , during 2019-2026.
Among the FMCG products segment, the food & beverages segment led with maximum Armenia consumer goods market share in terms of revenue, as consumers need and buy these on a daily or regular basis. However, the health care segment is expected to experience high demand in the Armenia consumer goods market during the forecast period, due to rise in health consciousness among consumers. Among the consumer durables segment, the kitchen appliances segment forms the Armenia consumer goods market trends in terms of revenue.
Based on distribution channel, the Armenia consumer goods market is classified into supermarkets & hypermarkets, specialty stores, e-commerce, and others. Among these, the supermarkets & hypermarkets segment led the market with maximum share in terms of revenue since retail trade in Armenia is gradually moving from small and medium stores to supermarkets & hypermarkets.
However, the Armenia consumer goods market segment for e-commerce is expected to experience high demand during the Armenia consumer goods market forecast period, since majority of Armenian households have access to internet and consumers shop widely on online platforms such as Amazon, Alibabaexpress, and Ebay to purchase consumer goods such as household appliances, books, personal care products and others.
By Distribution Channel
E-commerce segment would exhibit the highest CAGR of 7.2% during 2019-2026.
The key players in the Armenia consumer goods industry include Procter & Gamble Company, The Coca-Cola Company, PepsiCo, Inc., Nestlé S.A., Samsung Electronics Co., Ltd., LG Electronics Inc., Haier Group Corporation, Panasonic Corporation, Electrolux AB, and Koninklijke Philips N.V.
Key Benefits for Stakeholders:
- This report provides a quantitative analysis of the current trends, estimations, and dynamics of the Armenia consumer goods market size from 2019 to 2026 to identify the prevailing market opportunity.
- Porter’s five forces analysis highlights the potency of buyers and suppliers to enable stakeholders to make profit-oriented business decisions and strengthen their supplier-buyer network.
- A comprehensive analysis of factors that drive and restrict the Armenia consumer goods market growth is provided.
- An in-depth Armenia consumer goods market analysis helps to determine the prevailing market opportunities.
- The report includes details of the analysis of the country market, key players, market segments, application areas, and growth strategies.
Armenia Consumer Goods Market Report Highlights
| Aspects | Details |
 By PRODUCT |
|
 By DISTRIBUTION CHANNEL |
|
 Key Market Players | HAIER ELECTRONICS GROUP CO., LTD, AB ELECTROLUX, THE COCA-COLA COMPANY, PANASONIC CORPORATION, KONINKLIJKE PHILIPS N.V, PEPSICO, INC, SAMSUNG ELECTRONICS CO. LTD, NESTLE S A, PROCTER AND GAMBLE, LG ELECTRONICS |
Analyst Review
In accordance to several interviews conducted, the CXOs of the leading companies stated that the Armenia consumer goods market is expected to witness a positive growth prospects in the future. Armenia is an industrial-agrarian country. The country's GDP comprises various segments including agriculture, industrial production, trade, construction, and transport. The Armenian economy is demand based as consumer lending and remittances support private consumption. Furthermore, the GDP (gross domestic product) is gradually rising, which generates positive outlook for consumer spending and hence, growth prospects for consumer goods products in the country.
According to key players operating in the Armenia market, the rise in per capita income and disposable income is one of the key influential factors that generates positive impact on the market demand for consumer goods.
The development of new products through product innovation has enabled to create higher market traction for consumer goods products, especially in entertainment and information appliances. In addition, internet penetration has experienced a significant growth in Armenia. As a result, there has been a rise in number of e-commerce players in the market. Taking this fact into account, majority of the consumer goods manufactures operating in Armenia consider online platform as a key tool to promote and sell their products in an effective manner.
However, the presence of monopolies in the market have created persistent market entry barriers and led to market power abuse. Furthermore, the Eurasian Economic Union’s (EAEU) complex system of standardization is extremely redundant which causes major hindrances in dealing with custom authorities in Armenia.
The Armenia consumer goods market was valued at $1,734.5 million in 2018.
The Armenia consumer goods market is projected to reach $2,519 million by 2026, registering a CAGR of 4.7% from 2019 to 2026
The Armenia consumer goods market is projected to grow at a CAGR of 4.7% from 2019 to 2026.
The food & beverages segment was the highest contributor in the FMCG market and kitchen appliances segment was the highest contributor in the consumer goods market share in 2018.
The government initiatives to encourage new entrants & investments and e-commerce are the key opportunities in the market. The government of Armenia is making comprehensive reforms in the business environment to provide promising investments and business opportunities for global stakeholders. Owing to the expanded use of the internet, credit cards. and online banking, the e-commerce platform in Armenia is developing rapidly and can be regarded as an opportunity.
The key companies operating in the market include Procter & Gamble Company, The Coca-Cola Company, PepsiCo, Inc., Nestlé S.A., Samsung Electronics Co., Ltd., LG Electronics Inc., Haier Group Corporation, Panasonic Corporation, Electrolux AB, and Koninklijke Philips N.V.
Armenia is an industrial-agrarian country. The Armenian economy is demand based as consumer lending and remittances support private consumption. The rise in per capita income and disposable income is one of the key influential factors that generates positive impact on the market demand for consumer goods. However, the presence of monopolies in the market have created persistent market entry barriers and led to market power abuse.
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