Market Share

Urban Rural & Semi Rural

FMCG
market
40%
Overviews
60% The Fast-
moving com
modity (FMC
G) sector is
that the 4th
largest sector
of the Indian economy. It is characterized by high turnover consumer packaged goods, i.e.
goods that are produced, distributed, marketed and consumed within a short span of time.
FMCG products that dominate the market today are detergents, toiletries, tooth cleaning
products, cosmetics, etc. The FMCG sector in India also includes pharmaceuticals, consumer
electronics, soft drinks packaged food products and chocolates. Since the
world encompasses a various range of products, different companies dominate the market
in various sub-sectors. However, some of the top FMCG companies in India are- Dabur
(60%), Colgate (54.7%), Hindustan Unilever (54%).

Rural and urban trends

The FMCG industry in India is split into the demographics of rural and concrete India. The
urban market contributes 60% of the consumption revenue of the FMCG market in India. In
2017, this sector recorded a market size of $ 29.4 bn. While urban areas have
spearheaded the expansion of the FMCG industry in India, semi-urban and rural segments
are growing at a rate that can't be ignored. Semi-urban and rural segments contribute over
40% of the revenues of the FMCG sector in India. FMCG companies in India have witnessed
higher growth in rural areas compared to urban ones. And with 12.2% of the world’s
population living within the villages of India, the Indian rural FMCG market cannot
be ignored by investors. Dabur, one in every of the highest FMCG companies in India,
generates over 45% of its domestic revenue through the sale of packaged trade goods in
rural India. Hindustan Unilever, another name that has consistently dominated the list of
top FMCG companies in India, earns over 35% of its revenue from rural areas. Rural India
accounts for over 40% of consumption in major FMCG categories like tending, fabric care,
and hot beverages. In urban areas, home and personal care category- including skin care,
household care, and feminine hygiene- will continue to grow at attractive rates. Within the
foods segment, it's estimated that processed foods, bakery, and dairy are long-term growth
categories in both rural and concrete areas.
Fmcg Market in India
The FMCG sector is one among the most important sectors of the Indian economy.
According to an FMCG industry overview, revenues of the FMCG sector reached $ 52.75 bn
in FY18, and are estimated to succeed in $ 103.7 bn in 2020. As consumption in India grows
at an unprecedented rate, the FMCG industry remains a key sector for investors.
Acknowledging these trends within the FMCG industry profile, the govt of India has
undertaken various initiatives to market the world . For instance, 100% FDI is permitted in
SBRT and cash-and-carry models of retail, and the minimum capitalization for foreign
FMCG companies to invest in India is $ 100 mn. Even the implementation of GST in India
has had far-reaching consequences for the sector, as the highest selling FMCG products
such as soap, toothpaste and hair oil now come under the 18% tax bracket (as opposed to
the previous 24%)
FMCG market Overview Globally
The global FMCG market is projected to reach $15,361.8 billion by 2025, registering a CAGR
of 5.4% from 2018 to 2025. Fast moving consumer goods (FMCG) also known as consumer
packaged goods are products that can be bought at a low cost. These products are
consumed on a little scale and are generally available during a sort of outlets
including grocery, supermarket, and warehouses. The FMCG market has experienced
healthy growth over the last decade due to adoption of experience
retailing alongside reflecting consumers desire to reinforce their physical shopping
experience with a social or leisure experience.
The global FMCG market is segmented supported product type, channel , and region. Based
on product type it's classified as food and beverages, care (skincare, cosmetics, hair care,
others), healthcare care (over-the-counter drugs, vitamins & dietary supplements, oral
care, feminine care, others), and home care. The channel segment comprises of

supermarkets and hypermarkets, grocery stores, specialty stores, specialty stores, e

commerce, others. By region, it’s analyzed through North America, Europe, Asia-Pacific, and
LAMEA.

In 2018, the food & beverage segment held majority share within the FMCG market and is
predicted to carry a big share within the global market throughout the forecast period.
Consumers today have become more knowledgeable and open to food & beverages
consumed by foreign cultures. They are driven by a sense of exploration and are in search
for new experience. This look for novel experience has pushed the food & beverage
operators to take care of the standard of their offerings. The trend of healthy eating has
also been a top impacting factor affecting the expansion of the food & beverage market.
Consumers have become increasingly health conscious and a large number of people have
begun to follow special diets and want to enjoy these healthier choices both at home and
when they are eating.
In 2018, the supermarkets and hypermarkets channel segment dominated the FMCG
market. The growth of this segment is driven by rise in disposable income and increase in
demand for a one-stop solution for all shopping needs. Moreover, the augmented
experience provided by these retail formats increases its attractiveness to customers.
This successively drives the expansion of the supermarkets and
hypermarkets channel segment of the FMCG market.
CAGR
This sector is further expected to grow at a Compound Annual Growth Rate (CAGR) of
27.86 per cent to reach Rs 7,24,759.3 crore (US$ 103.7 billion) by 2020. FMCG market is
expected to grow at 9-10 per cent in 2020. FMCG urban segment witnessed growth rate of

8 per cent whereas rural segment grew at 5 per cent in quarter ended in September 2019;
supported by moderate inflation, increase in private consumption and rural income.