Indian FMCG Market – Industry Analysis and Forecast (2024-2030)

Indian FMCG Market size was valued at US$ 230.14 Bn. in 2023 and the total revenue is expected to grow at a CAGR of 27.9% through 2024 to 2030, reaching nearly US$ 1288.52 Bn.
Indian FMCG Market Overview:
The Indian FMCG market was valued at US $ 230.14 Bn. in 2023, and it is expected to reach US $ 1288.52 Bn. by 2030 with a CAGR of 27.9% during the forecast period. Growing youth population, changing lifestyles, and increasing brand awareness among the consumers are also contributed to the growth of India FMCG sector.To know about the Research Methodology :- Request Free Sample Report

Though market forecasting through 2030 is based on real output, demand and supply of 2023, 2023 numbers are also estimated on real numbers published by key players as well all important players across the world. Market forecasting till 2030 is done based on past data from 2018 to 2023 with the impact of lock down on the market in 2020 and 2021.
Indian FMCG Market Dynamics:
When we talk about FMCG, the first thought that lingers in our mind are products that are consumed on a daily basis. The increasing disposal income in rural India and low penetration level in rural market are propelling the Indian FMCG sector at an accelerating speed.

The focus on agriculture, MSMEs, education, healthcare, infrastructure and tax rebate under the Union Budget 2024-2030 is expected to directly impact the FMCG sector. These initiatives are expected to increase the disposable income of the common people, especially in the rural area, which will be beneficial for the sector.

The FMCG sector is a vital contributor to India’s GDP, being the fourth largest sector in the economy it creates employment for more than 3 Mn people. Its main elements are household care, personal care and food and beverages. 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.

It is observed that with an investment of US$254.50 Mn, Wipro is diversifying and expanding its product range in energy drinks, detergents, and fabric conditioners.

On the other hand, Patanjali will spend US$743.72 Mn in various food parks in Maharashtra, MP, Assam, Andhra Pradesh, and UP. It is advisable for the FMCG companies to encase opportunities like increasing consumer income, changing consumer lifestyle, aspiring rural consumer and consistent economic growth by utilizing its strengths.
Indian FMCG Market Segment Analysis:
The Indian FMCG Market is segmented by Product Type, Demographics, and Sales Channel.

Based on the Product Type, the market is segmented into Food & Beverages, Pharmaceuticals, Household & Personal Care, Consumer Electronics, and Others. Food & Beverages segment is expected to hold the largest market shares of xx% by 2030. The changing preferences of the upward middle class families from the urban areas gave importance to food & beverages sector and thus, fuelled the growth in the last few years. India is the world’s second largest producer of food, next only to China, and has the potential of being the largest player in food and agricultural sector. The food processing industry is one of the largest industries in India and is ranked fifth in terms of production, consumption, export, and expected growth. These are the key factor that drives the growth of this segment in the Indian FMCG market during the forecast period 2024-2030.

Based on the Demographics, the market is segmented into Urban and Rural. Rural segment is expected to grow rapidly at a CAGR of xx% during the forecast period. Accounting for a revenue share of around 45 %, rural segment is a large contributor to the overall revenue generated by the FMCG sector in India. Demand for quality goods and services have been going up in rural areas of India, on the back of improved distribution channels of manufacturing and FMCG companies.

Based on the Sales Channel, the market is segmented into Online and Offline. Online Retail segment is expected to grow rapidly at a CAGR of xx% during the forecast period. Online shopping has become popular in recent past. While offline sales comprising kirana stores continues to dominate the share, being the largest sales channel for overall FMCG retail sales, growth in sales through online shopping trend especially e-commerce is gradually outpacing the growth of FMCG products in offline trade. Post the announcement of demonetization and implementation of GST, the overall online trade is expected to grow at even faster rate with e-commerce. A faster growth in internet user base, broadband data consumption, and rise in smartphone penetration rate and in digital transaction is expected to drive the growth.

E-commerce companies like Amazon are strengthening their business in FMCG sector by positioning their platform pantry as front line offering to drive daily product sales. The growing consumer trust and confidence in online buying has helped e-commerce platforms to expand their share in India's total FMCG retail sales by as much as three times. These are the key drivers that boost the growth of this segment in the Indian FMCG market during the forecast period 2024-2030.
Indian FMCG Market Regional Insights:
North India is expected to hold the largest market shares of xx% by 2030. North India FMCG market was reported growth of 4.1% in September 2020. This factor is expected to drives the growth of North India region in the Indian FMCG market during the forecast period 2024-2030.

South India is expected to grow rapidly at a CAGR of xx% during the forecast period. South India FMCG market was reported growth of 1.8% in September 2020.

East India is the fastest growing region in the Indian FMCG market. East India FMCG market was reported growth of 1.3% in September 2020.

The objective of the report is to present a comprehensive analysis of the Indian FMCG Market to the stakeholders in the industry. The past and current status of the industry with the forecasted market size and trends are presented in the report with the analysis of complicated data in simple language. The report covers all the aspects of the industry with a dedicated study of key players that include market leaders, followers, and new entrants.

PORTER, PESTEL analysis with the potential impact of micro-economic factors of the market have been presented in the report. External as well as internal factors that are supposed to affect the business positively or negatively have been analyzed, which will give a clear futuristic view of the industry to the decision-makers.

The reports also helps in understanding the Indian FMCG Market dynamic, structure by analyzing the market segments and project the Indian FMCG Market size. Clear representation of competitive analysis of key players by product, price, financial position, product portfolio, growth strategies, and regional presence in the Indian FMCG Market make the report investor’s guide.
Indian FMCG Market Scope: Inquire before buying



Indian FMCG Market


Report Coverage
Details


Base Year:
2023
Forecast Period:
2024-2030


Historical Data:
2018 to 2023
Market Size in 2023:
US $ 230.14 Bn.


Forecast Period 2024 to 2030 CAGR:
27.9%
Market Size in 2030:
US $ 1288.52 Bn.


 Segments Covered:
by Product
Food & Beverages
Pharmaceuticals
Household & Personal Care
Consumer Electronics
Baby and Child Care
Tobacco and Tobacco Products
Petcare
Others


by Demographics
Urban
Rural


by Sales channel
Online
Offline
Supermarket/ Hypermarket
Grocery Stores
Others



Indian FMCG Market Key Players
1. Hindustan Unilever Ltd.
2. Nestlé India
3. Cadbury India
4. ITC (Indian Tobacco Company)
5. Asian Paints (India)
6. Procter & Gamble Hygiene and Health Care
7. AMUL
8. Dabur India
9. Britannia Industries
10. Marico Industries
11. Colgate Palmolive
12. PepsiCo
13. Unilever
14. AB InBev
15. Coca-Cola

Frequently Asked Questions:

1] What segments are covered in Indian FMCG Market report?
Ans. The segments covered in Indian FMCG Market report are based on Product Type, Demographics, and Sales Channel.

2] Which region is expected to hold the highest share in the Indian FMCG Market?
Ans. North India is expected to hold the highest share in the Indian FMCG Market.

3] Who are the top key players in the Indian FMCG Market?
Ans. Hindustan Unilever Ltd., Nestlé India, Cadbury India, ITC (Indian Tobacco Company), and Asian Paints (India) are the top key players in the Indian FMCG Market.

4] Which segment holds the largest market share in the Indian FMCG market by 2030?
Ans. Food & Beverages segment hold the largest market share in the Indian FMCG market by 2030.

5] What is the market size of the Indian FMCG market by 2030?
Ans. The market size of the Indian FMCG market is US $ 1288.52 Bn. by 2030.

6] What was the market size of the Indian FMCG market in 2023?
Ans. The market size of the Indian FMCG market was worth US $ 230.14 Bn. in 2023.