Indian FMCG Market

Fast Moving Consumer Goods (FMCG) include all consumables (other than groceries/pulses) that consumers need most of the time. The list will usually start at soaps, washing powders, shampoos, tooth brushes and paste, shaving cremes and lotions, polish for shoes, cars etc, processed foods, hair dryers and other such stuff.

These items are meant for frequent. The Indian FMCG market is the fourth largest sector in the economy. Market size is estimated at US$ 14 billion. Many Multi national companies are present in this sector. Usually the distribution network is very well set up for example the most popular FMCG company Hindustan Unilever Limited has over 10,000 shops all over India as their distributors. Competition between the organised companies and the always emerging unorganised companies which have low operational cost is on the rise.

Main areas of concern are – Key raw materials,  labour costs and presence of products for all the targeted consumers across value chain gives India a competitive advantage.

According to CII FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 35 billion in 2015. It is expected that penetration of consumption behaviour and the per capita use of such products especially such as jams, toothpaste, skin care, shampoos is low – which basically means market can grow that much.

Growth of population especially middle class and the rural areas creates an opportunity to convert consumers to branded products. Growth is also likely to come from consumers moving up the value chain.

Especially in the food processing Industry  300 million consumers may be added to packaged food choice consumers – by 2014, the country may need over US$ 31 billion investment in food-processing. Thus FMCG industry in india is very growth oriented industry.According to studies FMCG market in India is very promosing sector for investment.