FMCG Industry in India

India's FMCG market grew at 16% in FY21, the fastest seen in the previous nine years.

Advantage India

Growing
Demand

* The FMCG market in India is expected to increase at a CAGR of 14.9% to reach US$ 220 billion by 2025, from US$ 110 billion in 2020.

* Indian packaged food market is expected to double to US$ 70 billion by 2025.

* Rising digital connectivity in cities and rural areas is driving the demand for FMCG (through e-commerce portals).

Growing Demand

Attractive
Opportunities

* Increase in disposable income in rural India and low penetration levels in rural market offers room for growth.

* E-commerce segment is forecast to contribute 11% to the overall FMCG sales by 2030.

Attractive Opportunities

Policy
support

* Investment approval of up to 100% foreign equity in single brand retail and 51 % in multi-brand retail.

* The union government’s production-linked incentive (PLI) scheme gives companies a major opportunity to boost exports with an outlay of US$ 1.42 billion.

Policy Support

Higher
Investments

* Investment in this sector attract investors as FMCG products have demand throughout the year.

* The sector witnessed healthy FDI inflow of US$ 20.11 billion from April 2000-March 2022.

Higher Investments
Last updated: Jan, 2023

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