The FMCG Industry in India is growing by leaps and bounds thanks to an increase in population, increase in disposable income, government initiatives, expanding rural market and an online presence. The FMCG sector provides employment to around 3 million people accounting for approximately 5% of the total employment in India. FMCG sales in the country grew 7-9% by revenues in 2022-23.Market Size
Fast-moving consumer goods (FMCG) sector is India’s fourth-largest sector and has been expanding at a healthy rate over the years because of rising disposable income, a rising youth population, and rising brand awareness among consumers. With household and personal care accounting for 50% of FMCG sales in India, the industry is an important contributor to India’s GDP. The total revenue of the FMCG market is expected to grow at a CAGR of 27.9% from 2021 to 2027, reaching nearly US$ 615.87 billion.
The FMCG market in India reached US$ 56.8 billion as of December 2022. Total revenue of FMCG market is expected to grow at a CAGR of 27.9% through 2021-27, reaching nearly US$ 615.87 billion. In 2022, urban segment contributed 65% whereas rural India contributed more than 35% to the overall annual FMCG sales.Government Initiatives
The Union Budget 2023-24 has allocated US$ 976 million for PLI schemes that aims to reduce import costs, improve the cost competitiveness of domestically produced goods, increase domestic capacity, and promote exports.Future Prospects
India has a large base of young consumers who form most of the workforce. Online portals are expected to play a key role for companies trying to enter the deep pockets of India. The Internet has contributed in a big way, facilitating a cheaper and more convenient mode to increase a company’s reach.
It was found that that 40% of all FMCG consumption in India in the last few years was online. E-commerce share of total FMCG sales is expected to increase by 11% by 2030.