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WHY WE CHOOSING THIS INDUSTRY

FMCG product affects every aspect of human life. These goods are repeatedly devoured by all sections of the society and an extensive part of their wealth is spent on these products. Besides this, the FMCG sector is one of the imperative benefactors of the Indian economy. This sector has shown an astonishing progress over the past few years, in fact it has registered growth during recession period also. The future for FMCG sector is extremely favorable due to its intrinsic capacity and promising transformations in the environment. This report discusses on overview of the sector, its critical analysis and future prospectus.

INDUSTRY STRUCTURE

FMCG

FOOD PRODUCTS
  • Dairy Products

  • Tea/Coffee

  • Sugar

  • Vegetable Oils

  • Branded Flour

  • Confectionery

HEALTH CARE PRODUCTS
  • Sanitary Napkins

HOUSE HOLD & PERSONAL CARE PRODUCTS
  • Agarbattis,Fragrance &Essential Oils

  • Creams/Lotions

  • Hair Oil

  • Tooth Paste

  • Shikakai Shampoo

  • Tooth Powder

  • Soap & Detergents

  • Oral Care ,Skin Care

THE ADVANTAGES OF FMCG INDUSTRY IN INDIA

HIGHER INVESTMENTS

Many players like patanjali,Dabur etc are planning to expand new geographies & categories.Patanjali will spend us$ 743.72 mn  in various food parks in Maharastra, Madyapradesh, Assam, Andhra pradesh & Uttar pradesh.Dabur planning to invest Rs.250-300 crore(us$38.79-46.55mn)in fy19 for capacity expansion also planning to make aquisitions in the domestic market

GROWING DEMAND 

India’s Contribution to global consumption is expected to get double to 5.8% by 2020 Tier 2/3 cities are witnessing faster growth in modern trade

POLICY SUPPORT

Initiatives like Food Security Bill and Direct cash transfer subsidies reach about 40% of households in india

ATTRACTIVE OPPURTUNITIES

Increase in disposable income in rural india & low penetration levels in rural market offer room for growth

Growth In Online Users To Drive Online FMCG Market

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GDP Per Capita At Current Prices (US$)

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Growth Drivers for India's FMCG Sector
SHIFT TO ORGANISED MARKET

Organised sector Growth-increased level of brand consciousness,modern retail.

Post GST & demonetisation,modern trade share grew to 10% of the over all FMGC revenue as of August 2018

INCREASE IN PENETRATION

Low penetration levels of branded products in categories like instant foods indicating a scope for volume growth

EASY ACCESS

Online grocery stores and online retail stores like Grofers, Flipkart, Amazon making the FMCG products more readily available

RURAL CONSUMPTION

Huge untapped rural market-increasing incomes and higher aspiration levels-> demand for branded products.

Rural india accounts for 45 percent of the total FMCG market as of 2017-2018.