Fast Moving Consumer Goods (FMCG) Sector in India: A study
Dr. R Jayanthi
Fast-moving consumer goods (FMCG) are products that are sold quickly and at relatively low cost. Examples include non-durable goods and soft drinks, toiletries, over-the-counter drugs, processed foods and other consumables.
FMCG is the 4thlargest sector in the Indian economy and is valued at about USD 49 billion as of 2016 (as per IBEF).Household & Personal Care is the leading segment accounting for 50% of the overall market. This is followed by Healthcare at 32% and Food & Beverages comes next in terms of market share at 18%. Under Household & Personal Care, Hair care accounts for about 23% followed by Oral care at 15%, Home care at 6% and Skin care at 5% Credit Appraisal is the process by which a lender appraises the technical feasibility, economic viability and bankability including creditworthiness of the prospective borrower.
However, in the last few years, the FMCG market has grown at a faster pace in rural India compared with urban India. Semi-urban and rural segments are growing at a rapid pace and FMCG products account for 50 per cent of total rural spending.
FMCG companies play a pivotal role in our daily lives. From tooth paste, soaps, daily use items etc. FMCG companies have dominated the Indian market and are set to grow further. The FMCG industry has seen some big players but disruption by new players has also changed the Indian scenario. The top Indian FMCG companies include names like HUL, ITC, Nestle and New Entrant Patanjali.
The main purpose of this paper is to study and analyze about Fast-moving consumer goods (FMCG) Sector in India. This paper focuses on Significance of FMCG Sector, Evolution of FMCG in India, Three main segments of FMCG, Growth in Indian FMCG Sector, Challenges in FMCG Sector, Market Share of Companies in a few FMCG Categories as of October 2017, Top 10 FMCG Companies of India 2017, Strategies Adopted in FMCG, Advantages of FMCG Sector, Trends of FMCG Sector and Scope of the FMCG Sector.
Data has been collected from multiple sources of evidence, in addition to books, journals, websites, and newspapers.