Payment transformation for the FMCG food and beverage industry
In a vertical with massive players and brand equity, food and beverage enterprises should constantly seek the best platforms or products to optimize logistics and partner experience. And it's easier than ever to streamline business processes and supply chains – expanding into new and burgeoning markets.
Global operations: the next frontier for food and beverage FMCG
Accessing the flavors of local and international cuisines while staying in the comfort of your home is now commonplace. Consumers are clamoring to try the new energy drink they spotted on TikTok from a country halfway across the world, or the instant meal their favorite influencer ate while in their hometown. If they can access them.
However, starting operations in new markets may seem daunting with the rising prices1 in shipping, manufacturing, and global food costs due to the lasting impact of the pandemic and the turmoil in Russia and Ukraine.
The vast potential for growth in the food and beverage industry in the emerging markets of Africa, Asia, and Latin America cannot be understated. Economic development and population growth2 drive increases in overall food consumption. At the same time, a growing middle class looks for better quality and more variety.
A trusted payments partner can be a gateway into emerging economies, eliminating the stress, admin, and time it usually takes to get set up in a new regulatory environment.
Payment orchestration you don't need to worry about
The payments landscape varies incredibly between regions on the same continent and even in neighboring countries. Regional differences can be related to financial inclusion and education, access to support, lack of options, and more.
For example, 85% of the South African population is banked, so there isn't a significant focus on alternative payment methods. While in Nigeria, only 45% of the adult population3 has a bank account. Lack of bank and identity card access means Nigeria relies heavily on alternative payments such as cash, and mobile money.
Ensure efficient payment processing across all regions where your FMCG business expands by providing various payment options. Offering and accepting multiple payment methods can prevent delays or operational issues when paying or receiving payments from global suppliers, partners, and franchises.
And with the complex nature of cross-border payments and currency conversions, integrating an all-in-one payments solution like dLocal simplifies the process, allowing you to offer a broad range of payment localization options, such as Payins and Payouts, without much effort.
A helping hand in setting up localized business operations in emerging markets
The food and beverage industry has a huge potential for growth in emerging markets, but entering these regions can be challenging due to various factors such as regulatory environments and complex payments systems and behaviors. Expanding without a knowledgeable partner can lead to ineffective, bureaucratic, and slow payment collection and reimbursement.
Utilizing a trusted payments partner can make the process and expansion easier by providing localized payment options, assistance with compliance, and simplifying the process of cross-border payments and currency conversions. With a reliable payment solution like dLocal, FMCG businesses can access new markets and expand their operations with ease.
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