FMCG Market in India

FMCG or the Fast Moving Consumer Goods industry is also known as the CPG (Consumer packaged goods) industry in India. This industry is named so because goods are produced, distributed, marketed and consumed within a short span of time.

Products which are frequently purchased are examples of Fast Moving Consumer Goods. FMCG products mainly include; toiletries, detergents, tooth cleaning products, soaps, cosmetics, shaving products, paper products, glassware, batteries, plastic goods and bulbs. FMCG also includes consumer electronics, pharmaceuticals, soft drinks, packaged food products, tissue paper and chocolates.

In the year 2005, the FMCG Market in India was growing at a rapid rate of 5.3 percent. The value of the industry stood at Rs. 48,000-crore in the same year.

Currently the FMCG Market in India is one of the biggest and is growing at a rapid rate of almost 60 per cent. Despite the economic downturn the FMCG Market in India currently stands at Rs.85,000 crore. The phenomenal growth of the FMCG industry especially in the tier II and tire III cities in India is mostly due to the improvement in the standard of living of the people of such cities and the rise in the level of disposable income. Over the last few years companies like Dabur, HUL and ITC have managed to change the face of the FMCG industry in India by using cutting edge technology in production and a very strong distribution channel. Companies like Colgate Palmolive and Britannia have also managed to penetrate into the urban areas of the country.

The FMCG sector in India happens to be the fourth largest in the world. According to experts this industry will reach US$ 33.4 billion by 2015. Both the organized and the unorgaganized sectors are largely responsible for the success of the Indian FMCG industry. The Indian FMCG market also has a well defined and established distribution network that makes products available even in the most urban areas of the country.

FMCG Market in India

The components of the FMCG Market in India are

Cosmetics

This is one of the most popular segments. This includes products like color cosmetics (lip, eye, face, and nail care products), talcum powder, perfumes, and deodorants.

Toiletries

Toiletries are an essential part of the human life. These products are classified as oral care products, hair care products, skin care products, personal wash products, etc.

Detergent

The detergent market is mainly concentrated in the urban areas but the level of penetration in the rural for the past few years has been good.

Shoe Polish

The shoe polish market is worth around Rs 110 crores, out of which the kirana stores are worth around 80 crores.

Ice Cream

In India, the per capita consumption of ice cream is extremely low, around 300 ml per annum, in 2010, in comparison to that the international per capita consumption is around 2 liters.

Packaged Food

This is an important part of the food processing industry in India, as convenient foods have become an essential part of the middle class kitchen.

Chocolate

The volume of chocolate produced in India in a year is around 30,800 tons. Chocolate Market in India is concentrated in the urban areas.

Top FMCG Companies in India

Below is a list of the top FMCG Companies in India

• Hindustan Unilever Ltd.
• Nestlé India
• Cadbury India
• ITC (Indian Tobacco Company)
• Asian Paints (India)
• Procter & Gamble Hygiene and Health Care
• AMUL
• Dabur India
• Britannia Industries
• Marico Industries

Last Updated on 3/16/2011