Fast-Moving Consumer Goods (FMCG) Sector in India: A Comprehensive Industry Analysis Report | Scrolls
- Editor
- Aug 24
- 2 min read
by KarNivesh | 24 August, 2025
Overview of India’s FMCG Sector
India’s Fast-Moving Consumer Goods (FMCG) sector is a key part of the economy, covering essential items like packaged food, soaps, shampoos, toothpaste, and beverages. It’s one of the most resilient industries because people continue buying these products even during economic slowdowns.
Market Size & Growth: As of 2024, the FMCG sector in India is valued at around ₹18,300 – ₹21,400 crore and is projected to reach ₹92,200 crore by 2033. Some studies predict even higher growth, with estimates crossing ₹1,03,000 crore by 2034. This growth rate (about 15–21% CAGR) is much faster than the global FMCG growth rate of 5.4%, making India a highly attractive market.
What is FMCG?
FMCG refers to products that are sold quickly at low cost and purchased frequently. The sector includes:
Household & personal care (50% of the market),
Food & beverages (31%),
Healthcare products (19%).
India’s FMCG industry employs millions directly and indirectly. It connects rural and urban markets, selling branded goods in remote villages while serving urban premium consumers through modern retail and e-commerce.
Major Companies: The market is fragmented with room for local brands. Key players include:
ITC – 14% market share; market cap ₹6,25,106 crore.
Hindustan Unilever (HUL) – 12% share; market cap ₹6,33,591 crore.
Others: Procter & Gamble (10.7%), Parle Agro (8%), Johnson & Johnson (7.1%), Colgate-Palmolive (7%).
Local players like Nestlé India, Britannia, Dabur, and Godrej each have 2–3% market share.
Trends Driving Growth:
E-commerce & Quick Commerce: Online sales form 17% of FMCG sales; expected to hit 40% by 2030.
Health-conscious products: Growing demand for organic food, natural personal care, and immunity boosters.
Premium & personalized products: Urban consumers pay more for quality; AI-driven marketing is growing.
Sustainability: More eco-friendly packaging and clean-label products.
Rural digital access: Rural FMCG now makes up 35% of sales and is growing faster than urban markets.
Government Support: Policies like the PLI Scheme (₹10,900 crore) and GST (reduced rates) help FMCG companies. 100% FDI is allowed in food processing, attracting foreign investors.
Investments & Deals: In the first half of 2024, FMCG M&A activity touched ₹81,980 crore. Companies like Tata Consumer, ITC, and HUL are investing heavily in acquisitions and capacity expansion. Foreign direct investment in FMCG-related sectors was about ₹7,69,120 crore in 2024.
Challenges: Rising raw material costs, rural market volatility, supply chain issues, intense competition, and changing consumer tastes are key risks.
This sector provides an excellent mix of stability and growth potential, making it an attractive option for beginners looking to start investing in Indian stocks.