Changing Trends in FMCG Industry in India – Written by Vishnupriya

FMCG is also called the consumer packaged goods sector. The scope of FMCG industry in India is growing especially in rural areas. There are 638000 villages in India. 70% of the population live in the rural area. Hence it is vivid that the rural India is the best market ever for the FMCG industry. The key segments of FMCG sector are:

Household care

• Fabric Wash
• Household cleaners

Personal care

• Oral care
• Hair care
• Skin care
• Personal care
• Perfumes
• Toiletries
• Deodorants
• Feminine hygiene

Food & Beverages

• Soft drinks
• Snack food
• Chocolates
• Ice cream
• Tea & Coffee
• Processed fruits and vegetables
• Juices
• Branded sugar
• Bottled water
• Branded flour
• Branded rice
• Staples/cereals
• Dairy products

Some of the fast moving consumer goods in India are:

• Wipro
• Tata
• Kellogg’s
• Nestle
• Cadbury
• Pepsi
• Britannia
• MTR
• Henkel
• Heinz
• Kraft
• Dabur
• Cavin kare
• ITC
• Nirma
• Godrej group
• Grove limited
• Hindustan Unilever limited
• Parle Agro
• Amul India
• Johnson & Johnson
• Proctor and Gamble

Top 10 FMCGs (based on market capitalization)

1. ITC    (Market capital:  280654 CR)
2. Hindustan Unilever    (MC:  159272 CR)
3. Nestle India   (MC:   57251 CR)
4. Dabur India   (MC:  37259 CR)s
5. Godrej consumer products (MC:  4752 CR)
6. Proctor and Gamble India  (MC:  22.76 B)
7. Marico (MC:  193.17 B)
8. Emami  (MC:   152.84 B)
9.  Colgate-Palmolive Combined (MC: 57.39 B)
10. Glaxosmithkline Consumer  Healthcare  (MC: 101.06 B)

SWOT Analysis

Strengths

• Low operational costs
• Well known Brands
• Presence of established distribution
• Better  understanding of consumer needs and roots in the local culture

Weaknesses

• Low export levels
• Counterfeit products
• Lower scope of investing in technology and achieving economies in scale, especially in small sectors
• High advertising costs

Opportunities

• Export potential
• High consumer goods spending
• Untapped rural market
• Rising income levels and changing lifestyles
• Large domestic market
• Opportunity in food industry

Threats

• Slowdown in rural demand
• Tax and regulatory structure
• Removal of import restrictions resulting in replacing of domestic brand

Indian FMCG market segment

• Baby Care – 2%
• Fabric Care – 12%
• Food Products – 43%
• Hair Care – 8%
• Household – 4%
• OTC Products – 4%
• Others – 5%
• Personal Care – 22%