2. FMCG Sector of India The Indian FMCG sector, with a market size of $ 25 billion (2007–08 retail sales), constitutes 2.15 per cent of India’s GDP. The industry is poised to grow at CAGR between 10 to 12 per cent annually. Annual profit of FMCG sector is $14.74 billion. Market growth rate – Rural -40%, Urban -25% Average Indian spending on groceries and personal care is 48% (Groceries 40% & personal care 8%). Implementation of the proposed GST and opening of FDI are expected to fuel growth of industry’s size to $47 billion (Rs 225,000 crore) by 2013 and $95 billion (Rs 456,000 crore) by 2018, according to a new Ficci-Technopak report.
3. GDP rate increase along Increase in disposable income at 10 % annually for next 8 yrs. Indian FMCG Recorded 16% Sales Growth in Last Fiscal. The FMCG sector is a 4th largest sector of Indian GST Regime Transportation and infrastructure development in rural areas helps in distribution network. Restrictions in import policies. Help for agricultural sector . PEST Analysis (FMCG Sector) Technology has been simplified and available in the industry. 2. Foreign players helps in high technological development. Rural employment Volume-driven growth in rural market. Major young population can increase revenue . The Indian culture, social & life styles are changing drastically.
Counterfeit product: These products narrow the scope of FMCG products in rural and semi-urban market. Rising income levels, i.e. increase in purchasing power of consumersRemoval of import restrictions resulting in replacing of domestic brands
