The FMCG (Fast Moving Consumer Goods) industry in India is growing at a steady pace. It is the fourth largest industry in the Indian economy so far. The industry is segregated into the food and beverages (19%), healthcare (31%) along with household and personal care (50%) sectors.
Overview of Fast Moving Consumer Goods Industry in India
Factors such as rising awareness, evolving lifestyle and easier access have contributed to the growth of the FMCG industry. This market has become more widespread in rural India over the last few years owing to the rise in rural consumption of fast moving consumer goods. Certain government initiatives such as the allowance of 100% FDI (foreign direct investment) in food processing and single-brand retail as well as 51% FDI in multi-brand retail can account for high visibility of FMCG brands in well-organized retail markets. This will result in increasing supply chains, more employment opportunities; along with encouraging more product launches and in boosting consumer spending.
Indian companies such as Emami Limited (healthcare and personal care products), ITC ((Indian Tobacco Company) food and beverages and healthcare products), Dabur India Limited (food and beverages, healthcare and personal care products) and such meet the rising demand of fast moving consumer goods and contribute to the overall growth of the FMCG industry in India.