2. INTRODUCTION
Fast-moving consumer goods (FMCG), also known as consumer
packaged goods (CPG), are products that are sold quickly and at a
relatively low cost. Examples include non-durable household goods
such as packaged foods, beverages, toiletries, candies, cosmetics,
over-the-counter drugs, dry goods, and other consumables.
The FMCG industry is in charge of creating, distributing, and
marketing commodities so that they can be consumed continuously
by the general population
The FMCG sector in India is the fourth largest sector in the economy
with an estimated market size of 110 billion U.S. dollars in 2020 and
represents nearly 10 % of the country’s GDP. It has grown at CAGR
of 17.3% in the last 5 years. Compared to 2012, the market size of
fast-moving consumer goods had tripled
3. THE FMCG MARKET HAS THREE MAIN SEGMENTS
INDIA’S FMCG SECTOR IS 4TH LARGEST SECTOR IN THE
ECONOMY AND CONTRIBUTE TO AROUND 3 MILLION
EMPLOYMENT OPPORTUNITIES
FMCG
Food &beverages Health Care
Household &
Personel care
Health care,bakery
products,Snacks,
chocolates,icecream,
tea/coffee/soft
drinks,processed fruits &
vegetables,dairy products,
OTC products and
Ethical’s
Oral care,hair care,Skin
care,Cosmetics/deodora
nts,perfumes,household
cleaners
7. FMCG GROWTH PROSPECTS
Large Market:-
India has a population of more than 1.150 Billion which is just behind
China.
According to the estimates, by 2030 India population will be around 1.450
Billion.
India surpass China to become the World largest in terms of population.
FMCG Industry which is directly related to the population.Expected to
maintain a robust growth rate.
8. VAST RURAL MARKET
Rural India accounts for more than 700 Million consumers, or Approx. 70 per cent of
India population and accounts for approx. 45 per cent of total FMCG market.
The working rural population is approx. 400 millions. There is an untapped market and
most of the FMCG companies are taking different steps to capture rural market share.
The market for FMCG products in rural India is estimated approx. 52 per cent and is
projected to touch approx. 60 per cent within a year.
9. GROWTH STRATEGY OF FMCG
Multi brand Strategy
Brand Extensions
New Product Development
Wide distribution network
Sales promotion
Innovations in Core Products
10. TOP 10 FMCG COMPANIES
HUL - MARKET VALUE : $317.85B
ITC - MARKET VALUE : $388.34B
COCA-COLA - MARKET VALUE : $165.74B
ASIAN PAINTS - MARKET VALUE : $141.82B
NESTLE - MARKET VALUE : $98.54B
COLGATE PALMOLIVE - MARKET VALUE : $39.81B
MONDELEZ INTERNATIONAL - MARKET VALUE : $68.80B
PEPSICO - MARKET VALUE : $134.82B
RECKITT BENCKISER GROUP - MARKET VALUE : $63.03B
BRITANNIA - MARKET VALUE : $78.58B
11.
12. GOVERNMENT INITIATIVE TO PROMOTE FMCG
The Government has drafted a new Consumer Protection Bill with
special emphasis on setting up an extensive mechanism to ensure
simple, speedy, accessible, affordable and timely delivery of justice to
consumers.
The Goods and Services Tax (GST) is beneficial for the FMCG industry
as many of the FMCG products such as soap, toothpaste and hair oil
now come under the 18% tax bracket against the previous rate of 23-
24%. Also, GST on food products and hygiene products has been
reduced to 0-5% and 12-18% respectively.
The Government of India has approved 100% FDI in the cash and
carry segment and in single-brand retail along with 51% FDI in multi-
brand retail.
13. IMPACT OF COVID-19 ON FMCG
SECTOR
The market for fast-moving consumer goods faced considerable changes: demand for consumer
packaged goods (CPG) climbed sharply in heavily-affected countries, while growth in household
goods spending surged as well.
14. FUTURE OF FMGC IN INDIA
Rural consumption has increased, led by a combination of increasing income and higher
aspiration levels. There is an increased demand for branded products in rural India.
Online portals are expected to play a key role for companies trying to enter the
hinterlands. Internet has contributed in a big way, facilitating a cheaper and more
convenient mode to increase a company’s reach. The number of internet users in India is
likely to reach 1 billion by 2025. It is estimated that 40% of all FMCG consumption in
India will be made online by 2020. The online FMCG market is forecast to reach US$ 45
billion in 2020 from US$ 20 billion in 2017.
It is estimated that India will gain US$ 15 billion a year by implementing GST. GST and
demonetisation are expected to drive demand, both in the rural and urban areas, and
economic growth in a structured manner in the long term and improved performance of
companies within the sector.
