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The increasing demand for personal care items, such as hand sanitizers and disinfectants, coupled with significant at-home consumption of packaged products, should keep driving the industry’s growth. The industry has been enjoying favorable investor sentiment, which is evident in the iShares U.S. Consumer Goods ETF (IYK) 51.9% returns over the past year, compared to SPDR S&P 500’s (SPY) 45.7% gains over this period.
The global fast-moving consumer goods (FMCG) market is expected to grow at a CAGR of around 5.6% over the next six years to reach $16781.5 billion by 2027. With the recovery of the economy from pandemic-led damages and improving standards of living as federal recovery checks and rising employment come to bear, consumer goods stocks should keep performing well. Analysts expect The Procter & Gamble Company (PG) to deliver stellar returns in the coming months, given its strong fundamentals. However, they recommend avoiding Unilever PLC (UL) now, as the company has reported lower earnings compared to its peers.
