FMCG SECTOR IN INDIA

India is huge potential this is unsaturated market thats why global players are seeking india is an opportunities to business here. The FMCG sector in India increasing  due to consumer-driven growth and higher product prices, especially for essential goods. FMCG sector provides employment to around 3 million people accounting for approximately 5% of the total factory employment in India which is generating employment. FMCG sales in the country grew 7-9% by revenues in 2022-23. The key growth drivers for the sector include favourable Government initiatives & policies, a growing rural market and youth population, new branded products, and growth of e-commerce platforms. Resilience needs to be the key factor in the manufacturing process, daily operations, retail and logistic channels, consumer insights and communication that will help FMCG companies to withstand the test of time and create more value for consumers in the long run. India’s fast-moving consumer goods (FMCG) sector grew 7.5% by volumes in the April-June 2023 quarter, the highest in the last eight quarters, led by a revival in rural India and higher growth in modern trade.

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

FMCG products like things for homes and personal care make up a big part of India's economy. With household and personal care accounting for 50% of FMCG sales in India, the industry is an important contributor to India’s GDP. companies selling these products can't ignore because it has a lot of middle-class people, India is a country that no FMCG player can afford to ignore due to its middle-class population which is larger than the total population of USA. The Indian FMCG market is growing as more people get richer and have more money to spend. The Indian FMCG market continues to rise as more people start to move up the economic ladder and the benefits of economic progress become accessible to the public. India has a lot of young people, and as they get older and have bigger goals, they buy more things. More crucially, with a median age of just 27, India's population is becoming more consumerist due to rising ambitions. This has been further aided by government initiatives to increase financial inclusion and establish social safety nets.

The FMCG (Fast-Moving Consumer Goods) sector in India is growing quickly because people know more about these products, they're easier to find. Growing awareness, easier access and changing lifestyles have been the key growth drivers for the sector. Most of the money made in this sector comes from cities, but in recent years, the sales of FMCG products in villages have grown even faster .The urban segment (accounts for a revenue share of around 65%) is the largest contributor to the overall revenue generated by the FMCG sector in India. Most of the money made in this sector comes from cities, but in recent years, the sales of FMCG products in villages have grown even faster. However, in the last few years, the FMCG market has grown at a faster pace in rural India compared to urban India. Semi-urban and rural segments are growing at a rapid pace and FMCG products account for 50% of the total rural spending.  Sales in small towns and villages are increasing rapidly, and these products make up a big part of what people in villages spend their money on.

In this blog you can lean about indian supermarket industry and you will get insight for fmcg sector and in the next blog you will learn about Indian fmcg sector market size so keep in touch with us.