Factors affecting the demand and supply of the FMCG sector

1. Factors Affecting Demand and
Supply of FMCG Industry

2. What is FMCG ?

3. Household
Care and
Personal
Care
(50%)
Health
Care
(31%)
Food and
Beverages
(19%)
FMCG
Main Segments of FMCG
Source: Economic Times

5. Factors Affecting Demand of FMCG Industry
Price of the
product
Tastes and
Preferences
Population Growth
And
Per capita Income
Demography
InflationGovernment Policies

6. Factors Affecting Supply of FMCG Industry
Price
Natural
Conditions
Cost
of Production
Technology
Competition
Government
Policies

7. • Rural Market of India
• Online FMCG and E - Commerce
• Increase in disposable income
Expected expansion by major players into new
geographies and categories
Attractive
Opportunities
Expected increase in India’s contribution to
global consumption to 5.8% by 2020
Growing
Demand
Higher
Investments
Future Growth prospects of Indian FMCG Industry

8. Growth in Indian FMCG Sector
Trends in FMCG Revenues over the years (US $ billion)
Note: F – Forecast, * - FY18
Source: Dabur, AC Nielsen, Euromonitor International, ICICI securities, Nielsen India

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