2. What is FMCG?
• FMCG or the Fast Moving Consumer Goods industry is also
Known as the CPG (Consumer packaged goods) industry in
India.
• This industry is named so because goods are produced,
distributed, marketed and consumed within a short span of
time
• FMCG products mainly include; toiletries, detergents, tooth
cleaning products, soaps, cosmetics, shaving products,
paper products, glassware, batteries, plastic goods and
bulbs.
3. Market Overview
• The Indian FMCG sector is the fourth largest sector in the
economy
• Total market size in excess of US$ 13.1 billion.
• The FMCG market is set to treble from US$ 11.6 billion in
2007 to US$ 33.4 billion in 2018.
• The Indian FMCG industry represents nearly 2.5% of the
country’s GDP.
• The industry is poised to grow between 10 to 12 per cent
annually.
5. Market Shares of Companies in a
few FMCG categories:
Market Leader Others
Hair Oil 42% 15% 8% 5%
Shampoo 46% 24% 10% 6%
Oral Care 50% 23% 13%
Skin Care 59% 7% 7% 6%
Fruit Juice 52% 35%
6. FMCG Market in India
The components of the FMCG Market in India are :
• Cosmetics: This is one of the most popular
segments. This includes products like color
cosmetics (lip, eye, face, and nail care products),
perfumes, and deodorants.
• Toiletries: Toiletries are an essential part of the
human life. These products are classified as oral care
products, hair care products, skin care products,
personal wash products, etc.
• Detergent: The detergent market is mainly
concentrated in the urban areas but the level of
penetration in the rural area for the past few years has
been good.
7. FMCG Market in India
• Packaged Food: This is an important part of the
food processing industry in India, as convenient
foods have become an essential part of the middle
class kitchen.
• Chocolate: The volume of chocolate produced in
India in a year is around 30,800 tons. Chocolate
Market in India is concentrated in the urban areas.
8. Indian FMCG market segment
Baby care 2%
Fabric care 12%
Food product 43%
Hair care 8%
household 4%
OTC Product 4%
Personal care 22%
Others 5%
9. SWOT analysis of the sector
Strengths
1. Low operational
costs
2. Presence of well-
Known brands in
FMCG sector
Weaknesses
1. Low exports levels
2. Counterfeit
Products
Opportunities
1. Rising income level
2. High consumer
goods spending
Threats
1. Slowdown in rural
demand
2. Removal of import
restrictions
