Fast-Moving Consumer Goods refers to the sale and purchase of essential and non-essential goods available at low prices in the market. These goods deteriorate quickly due to their short shelf life and have huge consumer demand. FMCG Sector is the largest 4th sector in the Economy. FMCG Sector in India includes segments such as pharmaceuticals, packaged goods, groceries, toiletries, plastic goods, house care products, etc. The largest share in the FMCG Sector is obtained by the urban sector, nearly 50%, due to the rise in the per capita income of the people contributing to the revenue. Rural sector and the semi-urban sector is also emerging at a high pace due to the rise in penetration level, contributing to the growth of the Economy. Sales, services, marketing, retail, and supply are the major factors contributing to the FMCG Sector in India.
By 2025, the FMCG Market in India is projected to reach $15,361.8 billion, recording a CAGR of 8% to 2025. According to the FMCG Industry Report, revenues reached $ 52.75 billion in FY18 and are expected to reach $ 103.7 billion in 2020. The FMCG Market under the Commerce and Industry category has been allocated with the budget of Rs.11,893crores. The Union Budget 2019-20 initiatives expected to boost consumer confidence and improve demand for branded consumer products. The urban market in India contributes to 60% of the total revenue, whereas rural and semi-urban areas are also growing at a rate that can not be ignored. The Retail market in India estimated US$ 840 billion in 2017 and is expected to reach US$ 1.1 trillion by 2020, with modern trade expected to grow at 20% – 25% per annum, which is likely to increase revenues of FMCG markets. FMCG Consumption is estimated to be digitally influenced by 40% in 2020.
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