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FMCG in India- statistics & facts

The fast-moving consumer goods industry in India is one of the key contributors to its economy. Even though the urban sector contributed the majority share, semi-urban and rural segments had witnessed significant growth in the last decade.

Largely constituting of the unorganized market, the market size for FMCG in the country was estimated to be as high as 110 billion U.S. dollars in 2020 and expected to grow. Another area that helps boost brand retail in the country is the 100 percent foreign investment approval for single brands and 51 percent for multi-brand companies.

Household and personal care made up the lion’s share of the industry, with healthcare, and food and beverages. However, the onset of the coronavirus (COVID-19) pandemic impacted non-essential segments of the industry, much like the rest of the world, resulting in reduced demand.

While offline purchases were dominant, online channels are expected to see a significant growth rate in the years to come. Online portals from established players have started to play an important role in cheaper and more convenient modes of purchase for consumers. The online FMCG market in the country was estimated to reach about 45 billion U.S. dollars in 2020. Several startups had achieved success in recent years, securing a strong foothold in a growing market.

Most of the key players in the industry happen to be well-established conglomerates, some foreign and some domestic. Each of these has brands that are popular across households, presumably with variation according to region or tier. Additionally, advertising plays a vital role in determining how far a product or brand reaches its target, directly impacting consumer spending.

Increasing incomes, changing lifestyles, easier access, and growing awareness are some of the key drivers of growth and development in this industry. The trend towards more sustainably sourced and manufactured products also influenced the ways in which companies invest and brand their products.

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FMCG in India

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Household and personal care

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