What is the future of FMCG in India?
What is the future of FMCG in India?
With a growth rate of 14.7 percent, the FMCG sector has been projected to grow to a market size of almost US$ 220 billion by 2025. With household goods and personal care products amounting to up to 50 percent of FMCG sales in the country, the FMCG sector has proven to be India’s fourth-largest income-generating sector.
Which is best FMCG stock?
Summary Table of the best FMCG Stocks to buy now
| Sr.No | Company Name | Market Cap |
|---|---|---|
| 1 | HUL | 5,65,547 |
| 2 | Nestle India | 1,84,488 |
| 3 | ITC | 2,87,217 |
| 4 | Britannia Industries | 88,796 |
Which FMCG product is best?
Due to the pandemic, FMCG products witnessed a substantial increase in terms of sales.
- Parle. Founded by the Chauhan Family in 1929, Parle is today the most popular brand in India as well as overseas.
- Amul.
- Clinic Plus.
- Britannia.
- Ghari Detergent.
- Tata Products.
What is driving the growth of FMCG industry in India?
According to Nielsen, the Indian FMCG industry grew 9.4\% in the January-March quarter of 2021, supported by consumption-led growth and value expansion from higher product prices, particularly for staples. The rural market registered an increase of 14.6\% in the same quarter and metro markets recorded positive growth after two quarters.
How GST is beneficial for the FMCG industry?
The Goods and Services Tax (GST) is beneficial for the FMCG industry as many of the FMCG products such as soap, toothpaste and hair oil now come under the 18\% tax bracket against the previous rate of 23-24\%. Also, GST on food products and hygiene products have been reduced to 0-5\% and 12-18\% respectively.
What will propel the FMCG sector in the near future?
Along with that one important factor that will continue to propel the FMCG sector to higher growth paths in the near future is increasing use of digital technology. In recent years, there is also a greater tilt towards marketing products as ‘healthier’ and ‘herbal’ as consciousness grows among people about the need to consume healthy items.
What is the contribution of ecommerce to FMCG sales?
The contribution of ecommerce to FMCG sales currently stands a little above 1\%. However, this is expected to change rapidly over the coming decade. According to market research firm Nielsen, ecommerce’s contribution to the total FMCG sales is expected to be 11 per cent by 2030.