Problems and prospects of FMCGS marketing in India
Akhileshwar Kumar Singh
With a total market size in excess of USD14.7bn, India’s FMCG industry is the fourth largest sector in its economy and plays a vital role in India’s socioeconomic front with nearly eight million stores selling FMCG and employing some 25mn people as wholesalers, distributors and others. Besides that, the FMCG sector purchases nearly INR9,600cr worth of agricultural products and processes them into value-added products while the sector accounted for nearly 40% of the media industry’s revenue. Fast moving consumer goods (FMCG) are the 4th largest sector in the Indian economy. There are three main segments in the sector – food and beverages which accounts for 18 per cent of the sector, healthcare which accounts for 32 per cent and household and personal care which accounts for the remaining 50 per cent. The FMCG sector has grown from US$31.6 billion in 2011 to US$ 49 billion in 2016. The sector is further expected to grow at a Compound Annual Growth Rate (CAGR) of 20.6 per cent to reach US$ 103.7 billion by 2020.