Trade Analytics
FMCG Industry in India

Indian FMCG Industry Analysis

Latest update: April, 2018

 

 

  • Favourable demographics and rise in income level to boost FMCG market.
  • FMCG market in India is expected to grow at a CAGR of 20.6 per cent and is expected to reach US$ 103.7 billion by 2020 from US$ 49 billion in 2016.

 

Notes: CAGR - Compound Annual Growth Rate, FMCG - Fast Moving Consumer Goods
Source: World Bank, Emami Reports, Dabur Reports, AC Nielsen

Growth

 

 

 

  • Rise in rural consumption to drive the FMCG market.
  • The rural FMCG market in India is expected to grow at a CAGR of 14.6 per cent, and reach US$ 220 billion by 2025 from US$ 29.4 billion in 2016.

 

Notes: CAGR - Compound Annual Growth Rate, FMCG - Fast Moving Consumer Goods
Source: World Bank, Emami Reports, Dabur Reports, AC Nielsen

Growth

 

Last Updated: April, 2018

Fast moving consumer goods (FMCG) is the 4th 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 US$ 31.6 billion in 2011 to US$ 49 billion in 2016. The sector is further expected to grow at a Compound Annual Growth Rate (CAGR) of 20.6 per cent to reach US$ 103.7 billion by 2020. FMCG revenue grew 14.8 per cent during October-December 2017. FMCG sector is expected to register net revenue growth of 11.8 per cent in Q4 March 2018

Accounting for a revenue share of around 60 per cent, rural segment is the largest contributor to the overall revenue generated by the FMCG sector in India and recorded a market size of around US$ 29.4 billion in 2016 and is expected to grow to US$ 220 billion in 2025. 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. Semi-urban and urban segments accounted for a revenue share of 40 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.

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 employment under the Union Budget 2018-19 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.

Sectoral Presentation (April, 2018)

Download PDF   Download  (Size: 1.7 MB )

To access Archived reports, please click here

FMCG India

 
Auto Components Clusters in India
 

 

Posters

Brand India Pharma

FMCG INDIA

+ More >

Brand India Pharma

IBEF Publications

IBEF Publication

India Now Magazine


Rural India

English

+ More Publications >

IBEF Publication

IBEF Blog - INDIA ADDA – PERSPECTIVES ON INDIA More

author_Erich-Nesselhauf-MD-CEO-DICV1.JPG "We always firmly believed in the Make in India initiative. We're probably one of the most successful poster examples..."
Erich Nesselhauf, MD & CEO - Daimler India Commercial Vehicles

Daimler India Commercial Vehicle has been able to create a space for its offerings in the already crowded domestic commercial vehicle market. Erich Nesselhauf, MD & C...

author_GhanshyamLalVyas1.jpg Expanding horizons - Making it easier for Indian exporters to reach new markets!
Ghanshyam Lal Vyas, General Manager-Government Inspections and International Trade, TUV Rheinland India

TUV Rheinland India is a subsidiary of the TUV Rheinland Group, Germany. As part of the India, Middle East, Africa & Asia Pacific Group, it caters to the Indian marke...

author_logo-ibef1.jpg India hosts Informal WTO Ministerial Meeting
IBEF, Knowledge Centre

India hosted the Informal WTO Ministerial Meeting is being held in New Delhi on 19-20 March 2018. India is one of the founding Members of the World Trade Organization. Th...

author_Siddartha-Sacheti-Jaipur-Gems-CEO.jpg "Indian jewellers, especially those with heritage, have massive potential as brands themselves"
Mr Siddhartha Sacheti, CEO - Jaipur Gems

Jaipur Gems is one of India's largest producers and exporters of gems and jewellery. It has an international presence via retail stores, and has won multiple internat...

author_logo-ibef1.jpg Mid-term review of foreign trade policy: An update
IBEF, Knowledge Centre

The Indian Government announced the mid-term review of Foreign Trade Policy 2015-20 on December 5, 2017. Overall, the policy is expected to make Indian exports more compe...

author_Satish-Kannan1.jpg Internet Proliferation is Making Access to Healthcare Easier
Satish Kannan, Co-founder and CEO, DocsApp

In today's age, it's sometimes easy to forget that the internet is not just for networking and entertainment. It has a purpose and a vast reach; when used correct...

ideas More

Ideas

A Big Step Forward
Krispian Lawrence co-founded Ducere Technologies with Anirudh Sharma in 2011. Lechal is the outcome of their concerted efforts to use haptics in the wearable technology space. Both Anirudh and I were always fascinated by wearable technology, and were tinkering with various ideas in this space.

JOIN IBEF.org

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

Error

Already a member?
Login / Retrieve Password