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FMCG Industry in India

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Latest update: May, 2018

  • FMCG is the 4th largest sector in the Indian economy
  • Household and Personal Care is the leading segment, accounting for 50 per cent of the overall market. Hair care (23 per cent) and Food and Beverages (19 per cent) comes next in terms of market share
  • Growing awareness, easier access and changing lifestyles have been the key growth drivers for the sector
  • The number of online users in India is likely to cross 850 million by 2025.
  • Retail market in India is estimated to reach US$ 1.1 trillion by 2020 from US$ 672 billion in 2016, with modern trade expected to grow at 20 per cent - 25 per cent per annum, which is likely to boost revenues of FMCG companies
  • People are gracefully embracing Ayurveda products, which has resulted in growth of FMCG major, Patanjali Ayurveda, with a revenue of US$ 1.57 billion in FY17. The company aims to expand globally in the next 5 to 10 years.
Growth

Source: Dabur Annual Report, Economic Times, Emami Annual Report, McKinsey Global Instotute, CII, Boston Consulting Group Report

  • By 2020, the revenues of the sector are forecasted to reach US$ 104 billion
  • In the long run, with the system becoming more transparent and easily compliable, demonetisation is expected to benefit organised players in the FMCG industry.
  • Direct selling sector in India is expected to reach Rs 159.3 billion (US$ 2.5 billion) by 2021, if provided with a conducive environment through reforms and regulation
  • 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.
Growth

Notes: F - Forecast
Source: Dabur , AC Nielsen

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