The Role of Blockchain in FMCG Marketing for Strengthening Transparency and Ethical Practices

Abstract

The FMCG sector is undergoing a transformative shift as blockchain technology emerges as a tool to enhance transparency and ethical practices. This study explores the integration of blockchain in FMCG marketing, focusing on its impact on consumer trust, transparency, and ethical sourcing. Employing a mixed-methods approach, data was collected from 100 respondents using a structured questionnaire, and statistical tests such as chi-square and regression were conducted to validate the study’s objectives. The findings reveal that while consumer awareness of blockchain is moderate, trust and understanding vary across income groups. The statistical analysis highlights that transparency and ethical practices enabled by blockchain can potentially improve digital marketing effectiveness, but these factors are yet to achieve significant consumer recognition. Open-ended responses further indicate consumer demand for secure, transparent, and ethically sourced products. This study underscores the importance of educating consumers about blockchain’s practical applications, particularly in verifying product authenticity, ensuring data privacy, and fostering trust in marketing practices. It also identifies barriers to blockchain adoption, such as limited awareness and skepticism, and suggests targeted communication strategies to address these challenges. The study concludes that blockchain has significant potential to redefine transparency and ethics in FMCG marketing, paving the way for stronger consumer loyalty and sustainable business practices.