The fast moving consumer goods (FMCG) segment is the fourth largest sector in the Indian economy.

The market size of FMCG in India is estimated to grow

from US$ 30 billion in 2011 to US$ 74 billion in 2018

Food products is the leading segment, accounting for 43 per cent of the overall market. Personal care (22 per cent) and fabric care (12 per cent) come next
in terms of market share.

FMCG goods are popularly known as consumer packaged goods. Items in this category include all consumables (other than groceries/pulses) people buy at
regular interval

Rural areas expected to be the major driver for FMCG, as growth continues to be high in these regions. Rural areas saw a 16 per cent, as against 12 per
cent rise in urban areas

The top ten India FMCG brands are:

1.Hindustan Unilever Ltd.
2. ITC (Indian Tobacco Company)
3. Nestl India
4. GCMMF (AMUL)
5. Dabur India
6. Asian Paints (India)
7. Cadbury India
8. Britannia Industries
9. Procter & Gamble Hygiene and Health Care
10. Marico Industries

Another key factor today is speed. Today's consumer wants packaged goods that work better, faster, and smarter.
FMCG brands would need to focus on R&D and innovation as a means of growth.

One area that we see global and local FMCG brands investing more in is health and wellness
Health and wellness is a mega trend shaping consumer preferences and shopping habits and FMCG brands are listening. Leading global and Indian food
and beverage brands have embraced this trend and are focused on creating new emerging brands in health and wellness.

PepsiCo India of Re-Imagining FMCG in India ,D Shivakumar aptly summarised the present scenario of FMCG sector
in India saying,The FMCG industry has always been bedrock of talent to all other industries. It is one of the largest
sectors in India and is a largely a Make-in-India industry. FMCG has to be re-imagined for a future world, owing to the
varied changes and opportunities seen in this sector.

For FMCG sector, which is the fourth largest in economy with market size of US$13.1 billion year 2015 has been a
mixed bag. It was a roller coaster ride right from Union Budget to impending implementation of GST Bill for consumer
goods sector. There were cloudy days involving the Maggi ban, increase on tax of tobacco and heavy rains affecting
rural market. However, the sector is estimated to be among the key factors in reviving India
Digital communication, e-commerce and premium products are foreseen as key drivers for growth.
Union Budget 2015 was presented in the Parliament, FMCG sector had a fair share of its peak and crests.
25% hike on excise duty of cigarettes
Perhaps the biggest controversy for the year came from major food maker Nestle, which reported its first quaterly
losses in India due to Maggi ban. India is among the largest consumer of Maggi noodles across all Nestle operations in
the world, with a topline at 8-9%. The ban was enforced on the accusation that Maggi contained excess levels of lead
and mono-sodium glutamate (MSG). After much hue and cry and dozens of law cases the company had to eventually
withdraw Maggi noodles of worth Rs. 210 crore from the market.
Distress compounded for Nestle, as during April-June quarter, the company reported loss of Rs 64.4 crore, while
recalling Maggi worth Rs. 320 crore. Later, apex court of consumer issued a notice to Nestle to cough up Rs. 640 crore,
for unfair trade practices, false labeling and misleading advertisements of Maggi noodles.

Nestle seeks double digit growth for their brand by increasing its consumption capacity, and new marketing stragies
like partnership with Snapdeal
So, unlike other sector, GST is not playing Santa to the FMCG.
Major FMCG players are stressed on rural consumption for the next two-three quarters. For the two successive year,
there has been shortfall in rains which has impacted incomes and adversely affecting sales across product categories.
In the past four quarters, rural growth of household items right from toothpastes to detergent and biscuits to
beverages has been contracting to single digit growth of 5-6% compared to 11-12% of last year.
In a year, Dabur Red, the ayurvedic toothpaste brand of Dabur has overtaken Colgate-Dental cream in states like
Odisha and Bihar, doubling its shares.

Rising incomes and growing youth population have been key growth drivers of
the sector. Brand consciousness has also aided demand
FMCG market size: USD49 billion 2016
F FMCG market size: USD103.7 billion 2020
Investment approval of up to 100 per cent foreign equity in single brand retail
and 51 per cent in multi-brand retail
FMCG Household and personal care 50%
Food and beverages 18%
Health care 32%
FMCG is the fourth largest sector in the Indian economy Household and Personal
Care is the leading segment, accounting for 50 per cent of the overall market.
Health care (32 per cent) and Food & Beverages (18 per cent) comes next in
terms of market share Growing awareness, easier access, and changing lifestyles
have been the key growth drivers for the sector
The FMCG sector in India generated revenues worth USD47.3 billion in 2015 Over
2007-16F, the sector is expected to post CAGR of 11.9 per cent in revenues
In 2016, revenues for FMCG sector is expected to reach USD49 billion
Hair Care is the leading segment, accounting for 23.0 per cent of the overall
market in terms of revenue
Food Products is the second leading segment of the sector accounting for 18.0
per cent
In 2015, biscuits market is estimated to be around USD4.1 billion. Britannia has
28 per cent market share in terms of value
Godrej is launching OneRural Programme to generate more revenues from rural
areas
FSB would reduce prices of food grains for Below Poverty Line (BPL) households,
allowing them to spend resources on other goods and services, including FMCG
products This is expected to trigger higher consumption spends, particularly in
rural India, which is an important market for most FMCG companies

Emami acquired Kesh King

ITC acquired Johnson and Johnson
Emami is one of the faster growing FMCG companies
Dabur kaunched sugar free chwamanprash
In 2015, ITC launched its One Rural Programme focusing on penetration in
villages
GST:
Presently the peak tax costs for industry players amount to approximately 27%
(i.e. Excise Duty of 12.5% and VAT ranging from 12% to 15%). Under the GST
regime, it is proposed that the revenue neutral rate would be in the range of 17%
to 19%, thereby resulting in significant benefit for the sector.
ST will turn India into one common market, leading to greater ease of doing business and big savings in logistics costs from companies
across all sectors.