Trade Analytics
FMCG Industry in India
FMCG is the 4th largest sector in the Indian economy.

Indian FMCG Industry Analysis

Latest update: January, 2020



Last Updated: January, 2020

Fast moving consumer goods (FMCG) are the fourth largest sector in the Indian economy. There are three main segments in the sector – food and beverages which accounts for 19 per cent of the sector, healthcare which accounts for 31 per cent and household and personal care which accounts for the remaining 50 per cent.

The FMCG sector has grown from Rs 2,20,852.4 crore (US$ 31.6 billion) in 2011 to Rs 3,68,669.75 crore (US$ 52.75 billion) in 2017-18. The sector is further expected to grow at a Compound Annual Growth Rate (CAGR) of 27.86 per cent to reach Rs 7,24,759.3 crore (US$ 103.7 billion) by 2020. FMCG market is expected to grow at 9-10 per cent in 2020. FMCG urban segment witnessed growth rate of 8 per cent whereas rural segment grew at 5 per cent in quarter ended in September 2019; supported by moderate inflation, increase in private consumption and rural income.

 Accounting for a revenue share of around 45 per cent, rural segment is a large contributor to the overall revenue generated by the FMCG sector in India. Demand for quality goods and services have been going up in rural areas of India, on the back of improved distribution channels of manufacturing and FMCG companies. Urban segment accounted for a revenue share of 55 per cent in the overall revenues recorded by FMCG sector in India.

FMCG Companies are looking to invest in energy efficient plants to benefit the society and lower costs in the long term. Patanjali will spend Rs 5,197.85 crore (US$ 743.72 million) in various food parks in Maharashtra, Madhya Pradesh, Assam, Andhra Pradesh and Uttar Pradesh. Dabur is planning to invest Rs 250-300 crore (US$ 38.79-46.55 million) in FY19 for capacity expansion and is also looking for acquisitions in the domestic market. Tata’s are also planning to expand its home and personal care products in FMCG sector.  In FY19, ITC made more than 60 launches in the fast-moving consumer goods (FMCG) segment in India. Investment intentions related to FMCG sector, arising from paper pulp, sugar, fermentation, food processing, vegetable oils and vanaspati, soaps, cosmetics and toiletries industries, worth Rs 15,961 crore (US$ 2.28 billion) were implemented between January 2017 to July 2019.  In 2019, RP-Sanjiv Goenka Group to invest capital fund of Rs 103.01 crore (US$ 14.74 million) in FMCG start-ups. Nestle plans to invest Rs 700 crore (US$ 100.16 million) to open a new plant in Sanand for Maggi. ITC plans to invest Rs 700 crore (US$ 100 million) in food park in Madhya Pradesh.

Growing awareness, easier access, and changing lifestyles are the key growth drivers for the consumer market. The focus on agriculture, MSMEs, education, healthcare, infrastructure and tax rebate under the Union Budget 2019-20 is expected to directly impact the FMCG sector. These initiatives are expected to increase the disposable income in the hands of the common people, especially in the rural area, which will be beneficial for the sector.

Indian FMCG Industry in India Industry Report (January, 2020)
Download PDF Download PDF  (Size: 696.12 KB )

Click to access the FMCG Industry in India Industry Archived Report


IBEF, Knowledge Centre

Agriculture and its allied sector are crucial for the development of a country, especially for India where it is the largest source of livelihood. The sector plays a majo...

author_logo-ibef1.jpg Digital India: Power To Empower
IBEF, Knowledge Centre

The global economy is presently going through the fourth Industrial Revolution, also known as the Digital Revolution. This revolution is changing not only the way we inte...

author_logo-ibef1.jpg India's leapfrog strategy from BS-IV to BS-VI
IBEF, Knowledge Centre

The Ministry of Road Transport and Highways (MoRTH) issued a draft notification of Bharat Stage (BS) VI emission standards in 2016 for all major on-road vehicle categorie...

author_logo-ibef1.jpg Television Industry in India
IBEF, Knowledge Centre

Television was first introduced in India on September 15, 1959 with the help of UNESCO. Since then the television industry has witnessed transformation with advancement i...

author_logo-ibef1.jpg Indian Tourism Industry: An Insight
IBEF, Knowledge Centre

During the celebration of 73rd Independence Day, Prime Minister Mr Narendra Modi addressed the nation from the Red Fort and underlined that India ‘has mu...

author_alok_kirloskar1.jpg From smart water pumps to drones: Technology is changing Indian farms!
Alok Kirloskar, Executive Director, Kirloskar Brothers Limited

Disruptive technologies and innovations in application engineering are fast changing farming practices in India. From preparing the land to sowing, to reaping and mentori...

ideas More


Zomato: Top Of The Food Chain
Zomato, an Indian start-up is in the business of online food ordering. It initially launched in Gurugram in 2008, a website that scanned menus and provided ratings and recommendations on....


Join now. Enjoy FREE subscriptions downloads, updates and more.


Already a member?
Login / Retrieve Password