FMCG Retail

The metropolitan fragment (represents an income portion of around 55%) is that the biggest supporter of the overall income created by the FMCG area in India. However, within the previous couple of years, the FMCG market has grown at a faster pace in rural India compared to urban India. Semi-urban and rural segments are growing at a rapid pace and FMCG products account for 50% of the entire rural spending.

Market Size

FMCG Retail market in India is estimated to succeed in US$ 1.1 trillion by 2020 from US$ 840 billion in 2017, with modern trade expected to grow at 20 25% once a year , which is probably going to spice up revenue of FMCG companies. Revenue of FMCG sector reached Rs. 3.4 lakh crore (US$ 52.75 billion) in FY18 and is estimated to succeed in US$ 103.7 billion in 2020. From October 2020 to December 2020, the FMCG market rose 7.1%, driven by food items, health, hygiene and rural areas.

Ascend in provincial utilization will drive the FMCG market. It contributes around 36% to the general FMCG spending. within the third quarter of FY20 in rural India, FMCG witnessed a double-digit growth recovery of 10.6% thanks to various government initiatives (such as packaged staples and hygiene categories); high agricultural produce, reverse migration and a lower percentage .

Investments/ Developments

The Government has allowed 100% Foreign Direct Investment (FDI) in food processing and single-brand retail and 51% in multi-brand retail. this is able to bolster employment, supply chain and high visibility for FMCG brands across organised retail markets thereby bolstering consumer spending and inspiring more product launches. the world witnessed healthy FDI inflows of US$ 17.8 billion from April 2000 to September 2020.

Some of the recent developments within the FMCG sector are as follows:

– In April 2021, Rasna launched affordable immunity boosting syrup concentrates, comprising vitamin E , B12, B6, Selenium and Zinc.

– In March 2021, ITC Ltd. launched milkshakes and cakes to expand in categories like chocolates and staples.

– In March 2021, Sanjay Ghodawat Group launched RIDER, an energy drink. it’s available across all modern retail formats like supermarkets, general stores and e-commerce platforms.

– In February 2021, Nestle India announced plans to succeed in ~1.2 lakh villages (with each having population of over 5,000) over subsequent 2-3 years.

– In February 2021, Food and snack company, Haldiram’s partnered with Africa’s Futurelife to bring its nutritional foodstuff range to India. the 2 organizations dispatched an assortment of 4 items—Smart Foods, Smart Oats and Ancient Grains, Crunchy Granola and High Protein.

– In January 2021, Tata Consumer Products announced that it’s trying to find ways to feature more of its beverages’ portfolio onto a direct-to-consumer platform to capture the urban online market.

– In January 2021, Tata Consumer Products introduced two new products, TATA Tea Tulsi Green and TATA Tea Gold Care, and reformulated its existing Tetley tea , with added vitamin C .

– In January 2021, Dabur India decided to raid the ‘cow ghee’ category. These product are going to be prepared from milk sourced from indigenous cows bred in Rajasthan.

– In January 2021, Dabur India decided to raid the ‘cow ghee’ category. These product are going to be prepared from milk sourced from indigenous cows bred in Rajasthan.

– In January 2021, Del Monte has dispatched a unique 1 liter pocket pack in India, evaluated at Rs. 250 (US$ 3.42), thereby making vegetable oil affordable to consumers.

– In January 2021, FMCG organizations in India are having the chance to extend their oral consideration portfolio by entering new and specialty classifications like mouth splashes, ayurvedic mouth cleaning agents and mouthwashes to fulfill the rising customer interest for cleanliness items.

For example, Pulling oil, an ayurvedic concoction used as a morning oral cleansing ritual supported centuries-old Ayurvedic regimen, was launched by companies like Colgate Palmolive (India) Ltd. and Dabur India.

– In December 2020, Godrej Consumer Products Limited (GCPL), under its Godrej ProClean brand, has ventured into home cleaning products to satisfy the rising demand for cleaning and hygiene products among Indian consumers. the house cleaning products segment, which incorporates branded floor, toilet and toilet cleaners, is estimated to be ~ Rs. 2,600 crore (US$ 354.05 million).

FMCG companies are that specialize in strengthening their e-commerce engagement. An Ayurveda baby care range has been introduced by Dabur, which can be sold only on e-commerce platforms. With its contribution expanding from 1.5% to 5.6%, the e-commerce division of the group has quite doubled over the previous year. Similarly, within the half-moon of FY21, Marico’s e-commerce sector has grown 37% YoY, while Emami’s e-commerce business doubled to >100%.