India FMCG Market Size was valued at USD 112.5 Billion in 2022. The FMCG Industry is projected to grow from USD 121.8 Billion in 2023 to USD 230.6 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 8.30% during the forecast period (2024 - 2032). During the course of the projected period, one of the key market drivers anticipated to propel revenue growth of the target market is the growing population throughout India together with rising disposable income.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
One of the main factors boosting the fast-moving consumer goods (FMCG) market CAGR is consumers' increasing preference for online e-commerce distribution. In essence, online shopping platforms let customers gather data and contrast different food and drink, skincare, cosmetics, and hair care items that are offered on the internet. In a similar vein, FMCG suppliers post customer testimonials about their goods on their official websites. The tendency of users to share product ratings and feedback on e-commerce platforms affects how new customers make purchases. Furthermore, With the help of e-commerce platforms, FMCG companies may reach customers in even the most rural areas of India due to their nationwide reach. Comparing this increased reach to conventional brick-and-mortar retail is a big benefit. Moreover, products are suggested by algorithms on e-commerce sites based on a user's past browsing and purchases. More purchases are encouraged and the shopping experience is improved by this customisation. The opportunity to purchase for FMCG products online without having to interact with people in person became a key selling feature for e-commerce, particularly during the COVID-19 pandemic. Therefore, it is anticipated that during the projection period, sales of FMCG products through online channels will rise globally due to the growing trend of online shopping.
Additionally, in India, the FMCG market is expanding due in large part to the increasing consumption of ready-to-eat food goods. There is a greater need for quick food options as a result of urbanization and busy lives. For families and busy individuals, ready-to-eat items provide a convenient and expedient supper option. Meal preparation time is shortened by using ready-to-eat items. Professionals in the workforce, students, and families with two working partners will find this particularly appealing. Consumers are also more inclined to spend money on convenience or high-end goods as their wages rise. A common misconception is that ready-to-eat meals are a luxury. Furthermore, it is more common for younger generations to taste new flavors and try diverse cuisines. Ready-to-eat foods frequently provide a wide variety of gastronomic pleasures. Thus, this is also driving the FMCG market revenue.
The India FMCG market segmentation, based on product includes food & beverages, pharmaceuticals, household & personal care, consumer electronics, baby and child care, tobacco and tobacco products, petcare, and others. The polyester category dominated the market mostly. The food and beverage industry has been growing in recent years due to the shifting tastes of urban middle-class families who are moving up the social ladder. India has the potential to become the biggest participant in the food and agriculture sectors and is currently the second-largest food producer in the world, after China. In terms of output, consumption, exports, and projected growth, the food processing sector is one of the biggest in India and is rated sixth.
Figure 1: India FMCG Market, by Demographics, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The India FMCG market segmentation, based on demographics, includes urban and rural. The rural category generated the most income. The increased demand for high-quality products and services in India's rural areas can be attributed to the FMCG and industrial industries' enhanced distribution networks.
The India FMCG market segmentation, based on sales channel, includes offline and online. The online category generated the most income. In recent years, online shopping has grown in popularity. Even though kirana stores still account for the majority of offline sales for FMCG retail sales overall, the growth in sales through online shopping, particularly e-commerce, is steadily surpassing the growth of FMCG products in offline trade.
India is a developing country as it have seen notable economic growth in recent years. Because of its large populations, the countries in this country have a high demand for consumer goods. Indian customers seek the most value for their money and are price sensitive. Globalization and a growth in the working population are the main drivers of changes in lifestyle. The country’s FMGC market is predicted to develop due to the growing working population's tendency toward improving their look and the demand for various personal care items including face creams, lotions, and perfumes. Furthermore, the expansion of the affluent population has led to a rise in the consumption of processed and packaged goods, as well as an increase in internet and social media usage. This creates the conditions for the demand for FMCG products in the area to grow. In addition, the FMCG market is anticipated to see growth prospects in the future due to advancements in existing products and the launch of new products with competitive pricing.
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the FMCG market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, FMCG industry must offer cost-effective items.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 112.5 Billion |
| Market Size 2023 | USD 121.8 Billion |
| Market Size 2032 | USD 230.6 Billion |
| Compound Annual Growth Rate (CAGR) | 8.30% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Product, Demographics, Distribution Channel, and Region |
| Countries Covered | India |
| Key Companies Profiled | 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, Colgate Palmolive, PepsiCo, Unilever, AB InBev, Coca-Cola |
| Key Market Opportunities | · Growing usage of cellphones and social media on the Internet · Manufacturers are using a variety of tactics at competitive pricing and improving already-existing ones |
| Key Market Dynamics | · Increasing inclination towards online distribution for e-commerce · Increasing use of prepared foods in food goods |
India FMCG Market Highlights:
Frequently Asked Questions (FAQ) :
The India FMCG market size was valued at USD 112.5 Billion in 2022.
The market is projected to grow at a CAGR of 8.30% during the forecast period, 2024-2032.
The key players in the market are 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, Colgate Palmolive, PepsiCo, Unilever, AB InBev, Coca-Cola.
The food & beverages category dominated the market in 2022.
The online category had the largest share in the market.
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