FMCG Sector

Current Scenario

Fast Moving Consumer Goods sector – 4th largest sector in the Indian economy. Household
and personal care account for 50% of overall FMCG sales. Key growth drivers – Growing
awareness, Easier access, changing lifestyles and higher disposable income. Urban sector –
largest contributor to the overall revenue generated. However, rural India has experienced
faster growth as compared to urban counterpart. FMCG products account for 50% of rural
spending

RETAIL MARKET REVENUE

COMPOSITION
Estimated REVENUES OF FMCG

$1.1tn
19%

SIZE FY18 - $52.75 BN

ESTIMATED
50%
BY FY18
2020 31%

FY20 - $103.7 BN
DEVELOPMENTS IN THE SECTOR F&B Healthcare Household & Personal care

PER CAPITA FMCG

PATANJALI TO SPEND $ 743 MN CONSUMPTION
IN FOOD PARKS IN MP, ASSAM &
UP
DABUR TO INVEST ₹ 250-300 CR FOR
CAPACITY EXPANSION &
ACQUISITIONS
RPG CREATED ₹ 1 BN CAPITAL FUND TO
INVEST IN STARTUPS

INVESTMENT

FDI
100% IN FOOD
ALLOWED
PROCESSING
TIMELINES

RETAIL
AND
(SINGLE
BRAND)
POLICY SUPPORT

INITIATIVES LIKE
REAC
H 40% FOOD SECURITY BILL &
DIRECT CASH GOVERNMENT
TRANSFER INITIATIVES
SUBSIDIES
GOING AHEAD THE GST – BENEFICIAL FOR FMCG
INDUSTRIES AS SOAP, TOOTHPASTE
AND HAIR OIL COME UNDER 18%
40% TAX BRACKET AGAINST PREVIOUS
23-24%
CONSUMPTIO
N NEW CONSUMER PROTECTION BILL
ONLINE BY 2020 ON SETTING UP EASY MECHANISM
12-13% GROWTH FOR TIMELY DELIVERY OF JUSTICE
FORECASTED IN FY20

KE TRENDS
IN THE SECTOR

FUTURE
MARKET
STRATEGY
DETERMINANTS HUGE GROWH
Growth of e-commerce industry 1 BILLION
OPPORTUNITY
NEW
Consumers demand product convenience CONSUMERS BY
TO LEVERAGE
Greater focus on healthier products LOW COST
2020 SPENDING
ADVANTAGE
Greater disposable income BETWEEN
OF INDIA TO
More consumers in Asia $10-100 PER DAY
DEVELOP INTO
$45 BN -
Millennials to become big FMCG influencers ONLINE FMCG
A SOURCING
HUB FOR
Newer sustainability consumer mindset MARKET SIZE INTERNATIONA
Demand driven by population density BY 2020 L MARKETS