India's FMCG market grew at 16% in FY21 and this has been a phenomenal growth and one of the best year in the last decade. India is now home to more than 800 Direct to Consumer brands and this is likely to grow to a US$ 101 billion opportunity by 2025.
FMCG had a 29% growth in ad volumes against the same period last year . And the e-commerce sector showed a 26% growth too over year 2020 performance.
Fast-moving consumer goods (FMCG) sector is India's fourth-largest sector with household and personal care accounting for 50% of FMCG sales in India. The urban segment accounts for a revenue share of around 55% and is the largest contributor to the overall revenue generated by the FMCG sector in India. In recent years, the FMCG market has grown at a faster pace in rural India too. Semi-urban and rural segments are growing at a rapid pace and FMCG products account for 50% of the total rural spending.Industry Forecast
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. According to Industry-based research studies , household spending on FMCG is projected to increase 9.1% YoY in the current year and after some downslide due to economic impact of the pandemic. The FMCG sector's revenue growth will double from 5-6% in FY21 to 10-12% in FY22, according to Industry sources.Industry Investments
The Indian FMCG sector witnessed healthy FDI inflows of US$ 20.01 billion between April 000-December 2021.