Industry Insights -
FMCG Industry

Employing more than 10 million people, contributing to nearly 10% of the country’s GDP, the Fast-Moving Consumer Goods (FMCG) sector in India plays a quintessential role in the Indian economy. It is the fourth largest sector in the economy, with 80% of the sales coming from Food & Beverages, Household and Personal Care products.

Although the sector’s landscape is mostly unorganized and almost 80% of the sales still come from the local kirana stores. However, during the pandemic the sector evolved, and a major transformation was seen with the industry trying to become more organized and going digital. Even the rural markets of the country are becoming an important part of this digital revolution, with deeper internet penetration deleveraging digital transformation and going the ‘e’ (e-commerce) way, has become an important imperative for all the players of the sector.

According to NielsenIQ’s FMCG Snapshot for Q2 2022, the FMCG industry has grown by 10.9% in the quarter ending June 2022, versus 6% in the previous quarter. Also, the consumption recovery and promising macro factors indicate a double-digit growth for FMCG in India, in 2022.

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