We recently compiled a list of the . In this article, we are going to take a look at where Unilever PLC (NYSE:UL) stands against the other FMCG stocks. If you walk into a modern pantry, you're almost guaranteed to find it well-stocked with everyday essentials like toilet paper, soap and toothpaste, beverages, and food.
This reflects a simple reality: most consumers prefer to keep these items in ample supply. While consumers will always demand these products, they are not entirely indifferent to price increases during inflation. Instead, they might look to save money by buying in bulk or shopping at big-box stores.
Regardless, they will continue to prioritize purchasing these necessities. Known as fast-moving consumer goods (FMCG) or consumer packaged goods (CPG), these high-demand products are valued for their affordability and rapid turnover. They are considered "fast-moving" because they quickly sell off store shelves due to their regular use by consumers.
Although investors typically look towards bonds and cash to manage risk, FMCG stocks offer a defensive alternative that can provide both growth and income. While these stocks may not generate spectacular growth opportunities and can lose value as interest rates rise, they generally decline less than other sectors during recessions. In fact, certain industries, such as food, tobacco, and alcohol, may even experience increased demand during economic downturns.
As one of the world's largest industries, the global FMCG sector.