The Facts about the FMCG Industry
Distribution channels of FMCG
The Four stages of a typical FMCG
Major FMCG players across the globe
Top 10 brands in the FMCG sector
Indian FMCG industry at a glance
Graphical presentation of Indian FMCG
Indian FMCG giants in 2013
Top 10 towns with highest FMCG spending
FMCG, otherwise known as CPG (consumer packaged goods sector), is one of the
biggest industries in the world.
Fast-Moving Consumer Goods refers to consumer non-durable goods required
for daily or frequent use.
Fast Moving Consumer Goods are products that are sold quickly & at low cost
like soft drinks, tooth paste, soaps, shampoos, detergents, shaving products,
chocolates, Over-the-counter drugs, toys, processed foods, household accessories
and many other consumables.
FMCG companies have a huge market to target. But, often companies face
different challenges in different countries to capture true market value.
The success of an FMCG depends greatly on its marketing strategy.
FMCG have a short shelf life, either as a result of high consumer demand or
because the product deteriorates rapidly.
FMCG is probably the most classic case of low margin and high volume
FMCG companies have intense distribution network. Companies spend a large
portion of their budget on maintaining distribution networks.
FMCG companies are behind the biggest brands in the world. FMCG is all about
names, the products which everyone recognises from trips to the supermarket or from
ads on television etc. The brands that make up this sector are the high profile ones, the
ones everybody knows and loves. Think Coca-Cola, Dettol and Dove.
The FMCG industry changes fast and is constantly evolving. From the pace at
which goods leave the shelves to the rate of product innovation and career progression,
things move quickly. And it doesn't end there. The brands themselves are changing just
FMCG firms thrive on employee and customer retention. Employee investment is a
big part of the ethos of the FMCG world. Perhaps it's because we understand the
importance of loyalty. Customer loyalty can make or break a brand. FMCG companies
encourage the loyalty of their employees.
FMCG companies can beat the recession. FMCG industry has proved itself very
resilient to recession. Why? Consumers will always need to buy the products created by
FMCG companies. They may not buy big items like refrigerators etc. in recession, but
floors still need to be cleaned, clothes need to be laundered and pains still need to be
The FMCG industry thinks bigger and better. This is an industry that offers things on
a whole new scale. FMCG firms are always thinking of the next great discovery or
innovation – always developing and ever-changing to meet consumer's needs.
fabric wash (laundry
soaps and synthetic
floor cleaners, toilet
metal polish and
Food & Beverages
Health beverages; soft
cakes); snack food;
chocolates; ice cream;
tea; coffee; processed
fruits, vegetables and
meat; dairy products;
bottled water; branded
flour; branded rice;
branded sugar; juices
I. Introduction into the market: When the product enters the market for
the first time. The demand for the product needs to be increased; this is
usually done, by giving the customer some samples so that they can try
before they purchase the product. This stage helps the company to identify
potential issues the product might have, from the consumer’s point of view.
II. Growth Stage: After the product is introduced into the marker the sales
increase, people start to buy the product when required, the public is aware
of the products features and benefits at this stage.
III. Maturation stage: Production costs usually reduce at this point as the
product would have sold several times during the growth stage. Price of the
product usually drops down and the sales peek at this time. During this stage
competitors introduce their own products, which have, are off similar
IV. Decline Stage: Sales would have dropped down significantly, price of the
product increases and consumers tend to buy other products. Getting profits
becomes very hard at this stage. The product is then stopped when it
reaches this stage
Name Based Market Value
Nestle Switzerland 233.50
Procter & Gamble America 208.50
Coca-Cola America 173.10
Anheuser-Busch InBev Belgium 153.50
Philips Morris International America 150.60
Unilever Anglo-Dutch 122.30
PepsiCo America 118.90
British American Tobacco America 102.00
Reckitt Benckiser British 51.20
General Mills America 29.90
Brand Brand Value
Gillette 24,898.00 Safety razors and other personal care products
Cereals and convenience foods, including cookies, cereal bars
and frozen waffles
Pampers 11,296.00 Baby care products
L’Oreal 8,821.00 Hair care & color, skin care, sun protection, make-up, perfumes
Heinz 7,722.00 Food products
Health care and personal products such as toothpastes,
toothbrushes, soaps and detergents
DANONE 7,498.00 Dairy products and water brands
Baby food, bottled water, breakfast cereals, coffee,
confectionery, dairy products, ice cream, pet foods and snacks
Avon 5,151.00 Beauty, household and personal care products
Band-Aid, Tylenol medications, Johnson's baby products,
Neutrogena skin and beauty products, Clean & Clear facial
wash and Acuvue contact lenses
The fast moving consumer goods (FMCG) segment is the fourth largest sector in
the Indian economy. The FMCG sector in India has market size in excess of US$
13.1 billion as of the year 2012.
The market size of FMCG in India is expected to grow from US$ 30 billion in 2011 to
US$ 74 billion in 2018.
The FMCG sector in India generated revenues worth US$ 34.8 billion in 2011, a
growth of 15.2 per cent as compared to the previous year. Over 2006-11, the sector's
revenues posted a compound annual growth rate (CAGR) of 17.3 per cent.
A total of 7.8 million retail outlets sell FMCG in India.
India is becoming one of the most attractive markets for foreign FMCG players due to
easy availability of imported raw materials and cheaper labour costs.
The growth of FMCG is due to liberalization, urbanization, increase in the
disposable incomes and altered lifestyle.
The industry has witnessed healthy foreign direct investment (FDI) inflow, as the
sector accounted for 3 per cent of the country’s total FDI inflow in the period April
2000 to October 2013. Organised retail share is expected to double to 14–18 per
cent of the overall retail market by 2015.
Top 10 Towns with highest
spending on FMCG products
II. Greater Mumbai
(Updated on 2nd June 2014)
Strong brand recognition
Variety of choices
Excellent R & D facilities
Unmatched distribution network
Low operational cost
Strategic places (outlet)
Full of rich experience
Good & accessible transport network
Intense competition amongst FMCG
Fluctuations in foreign currency
Increasing cost of raw materials
Change in technology
Impact of financial slow down
Low customer loyalty
Limited presence in some countries
High attrition rate
Declining export level
High advertising cost which may
affect the margins
Poor customer service
Large domestic markets
Large untapped market available,
especially the rural areas
Changing lifestyles & rising income
Increase awareness through social
Value added services
Huge competitive market for the clients