7/21/2019 Trends for Industry

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Trends for industry’s major products (historical and projected)

 The fast moving consumer goods (FMCG) segment is the fourth largest sector in theIndian economy. The market size of FMCG in India is estimated to grow from !" #$%illion in &$'' to !" %illion in &$'*.

Food +roducts is the leading segment, accounting for # +er cent of the overallmarket. -ersonal care (&& +er cent) and fa%ric care ('& +er cent) come net in termsof market share.

  Growing awareness, easier access, and changing lifestyles have %een the keygrowth drivers for the sector.

Trend in consumption by Rural Population

/ural areas e+ected to %e the ma0or driver for FMCG, as growth continues to %ehigh in these regions. /ural areas saw a '1 +er cent, as against '& +er cent rise inur%an areas. Most com+anies rushed to ca+italise on this, as they 2uickly wenta%out increasing direct distri%ution and +roviding %etter infrastructure. Com+anies

are also working towards creating s+eci3c +roducts s+ecially targeted for the ruralmarket.

 

 The Government of India has also %een su++orting the rural +o+ulation with higherminimum su++ort +rices (M!-s), loan waivers, and dis%ursements through the4ational /ural 5m+loyment Guarantee 6ct (4/5G6) +rogramme. These measureshave hel+ed in reducing +overty in rural India and given a %oost to rural +urchasing+ower.

 

7ence rural demand is set to rise with rising incomes and greater awareness of %rands.

 

Trend in consumption by Urban Population 

8ith rise in dis+osa%le incomes, mid9 and high9income consumers in ur%an areashave shifted their +urchasing trend from essential to +remium +roducts. Inres+onse, 3rms have started enhancing their +remium +roducts +ortfolio. Indian andmultinational FMCG +layers are leveraging India as a strategic sourcing hu% for cost9com+etitive +roduct develo+ment and manufacturing to cater to international

markets.

 

Top Companies

 

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6ccording to the study conducted %y 6C 4ielsen, 1& of the to+ '$$ %rands areowned %y M4Cs, and the %alance %y Indian com+anies. Fifteen com+anies ownthese 1& %rands, and & of these are owned %y 7industan ni:ever.

 

 The to+ ten India FMCG %rands are;'.7industan nilever :td.

&. ITC (Indian To%acco Com+any)

#. 4estl< India

. GCMMF (6M:)

=. >a%ur India

1. 6sian -aints (India)

. Cad%ury India*. ?ritannia Industries

@. -rocter A Gam%le 7ygiene and 7ealth Care

'$. Marico Industries

 

Future Growth

 

FMCG %rands would need to focus on /A> and innovation as a means of growth.Com+anies that continue to do well would %e the ones that have a culture that+romotes using customer insights to create either the net generation of +roductsor in some cases, new +roduct categories.

 

Bne area that we see glo%al and local FMCG %rands investing more in is health andwellness. 7ealth and wellness is a mega trend sha+ing consumer +references andsho++ing ha%its and FMCG %rands are listening. :eading glo%al and Indian food and%everage %rands have em%raced this trend and are focused on creating newemerging %rands in health and wellness.

 

6ccording to the -wC9FICCI re+ort 8inds of change, &$'#; the wellness consumer,nutrition foods, %everages and su++lements com+rise a I4/ '= %illion to '=$ %illionmarket in India, is growing at a C6G/ of '$ to '&.