Trade Analytics
FMCG Industry in India
India’s FMCG industry is expected to grow at 12 per cent in 2016, reaching the sales figure of US$ 49 billion.

Indian FMCG Industry Analysis

Latest update: February, 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





  • 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



Last Updated: February, 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.

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 (February, 2018)

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