FMCG Sector

 FMCG Sector (Fast Moving Consumer Goods) is the 4th Largest Sector in the Indian Economy. India is expected to be the 5th Largest FMCG Market.

FMCG Sector has 3 main Segments: as shown in Picture

FMCG Sector's Market Share in Segments:

• Household & Personal Care - 50%
• HealthCare - 31%
• Food & Beverage - 19%

FMCG Sector Market in India :

• FMCG market is estimated to grow by $220 Billion in 2025 with a CAGR of 15%.

Revenue Trend of FMCG Sector:

The revenue trend in FMCG Sector is grown by 22% from 2016 to 2020.

Revenue Breakup of 2020 -as shown in the below picture:

As shown above picture Revenue of 2020 in FMCG Sector is Breakup into -

• Rural - 45%
• Urban - 55%

*Revenue trend in Rural India is faster than Urban India from last few years.

Online FMCG Market:

Many FMCG companies like Marico, HUL, ITC, Dabur, Godrej Consumer Products are focused on E-commerce Sales through E-commerce platforms like Dunzo, BigBasket, Flipkart, Amazon etc.

In the 4th Quarter of FY21 Total FMCG E-commerces sales were :

• HUL - 6%
• Marico - 8%
• Dabur - 5%
• ITC - 5%
• Godrej - 4%

The Growth of Online Users is estimated to be 200 million by 2020 from 2017 - as shown in the below picture :

As above estimated Online Users & also estimated the Growth of Online FMCG Market is shown in the below picture:

• The online FMGC Market is estimated to grow by $65 Billion in 2022 from $20 Billion in 2017 with a CAGR of 27%.
• According to Accenture India, Large FMCG Company's e-commerce share has reached 7-8% in the country.

Government Initiatives :

• The Government introduced SETU Scheme to encourage young entrepreneurs with an investment of  $163.73 million.
• FDI investment is allowed 100% in Food Processing & single-brand retail & 51% in multi-brand retail.

FDI inflow in FMCG Sector from April 2000 to June 2021 was $18.59 Billion.