History of fmcg industry in india

Fmcg industry structure

The high burden of local taxes is another reason attributed for the slowdown in the industry. Aspiration levels in this age group have been fuelled by greater media exposure, unleashing a latent demand with more money and a new mindset. The demand for detergents has been growing but the regional and small unorganized players account for a major share of the total volume of the detergent market. Beverages Indian tea market is dominated by unorganized players. There is an upward trend in urban as well as rural market and also an increase in spending in organized retail sector. These companies were, therefore, able to charge a premium for their products. This category has 18 major brands aggregating Rs. Equitymaster requests your view! India has a large base of young consumers who form the majority of the workforce and, due to time constraints, barely get time for cooking. However, more than 50 per cent of the market share is in unpacked or loose form. The major players in this segment are Hindustan Unilever with a market share of 54 per cent, followed by CavinKare with a market share of 12 per cent and Godrej with a market share of 3 per cent. The skin care market is at a primary stage in India. Hair Care:The hair care market in India is estimated at around Rs. Oral Care The oral care industry, especially toothpastes, remains under penetrated in India with penetration rates around 50 per cent. The urban segment accounts for a revenue share of around 55 per cent is the largest contributor to the overall revenue generated by the FMCG sector in India However, in the last few years, the FMCG market has grown at a faster pace in rural India compared with urban India.

Poor monsoon in some states, too, is unlikely to help matters. In the process, margins have been compromised, more so in the last six years FMCG sector witnessed decline in demand.

Mba project on fmcg industry

Tea :The major share of tea market is dominated by unorganized players. The outlook in the short term does not appear to be very positive for the sector. In our view, organized retailing results in discounted prices, forced-buying by offering many choices and also opens up new avenues for growth for the FMCG sector. Also rates on food products and hygiene products have been reduced to per cent and per cent respectively. GST and demonetisation are expected to drive demand, both in the rural and urban areas, and economic growth in a structured manner in the long term and improve performance of companies within the sector. With rapid urbanization, emergence of small pack size and sachets, the demand for the household care products is flourishing. Moreover, the general slowdown in the economy is also likely to have an adverse impact on disposable income and purchasing power as a whole. Hindustan Unilever Ltd is the largest player in the industry and has the widest market coverage. The personal wash can be segregated into three segments: Premium, Economy and Popular. Lower price and smaller packs are also likely to drive potential up trading. Packaged Food Only about per cent of output is processed and consumed in packaged form, thus highlighting the huge potential for expansion of this industry.

There are numerous other examples of this. Packaged Food Only about per cent of output is processed and consumed in packaged form, thus highlighting the huge potential for expansion of this industry.

Indian fmcg sector analysis 2018

And an average citizen in rural India has less then half of the purchasing power as compare to his urban counterpart. Opportunities: Untapped rural market Rising income levels, i. Nestle and Amul slug it out in the powders segment. Management vision to growth is the key, as consumers going forward are likely to become even more sophisticated in their demand. Hair Care:The hair care market in India is estimated at around Rs. The high burden of local taxes is another reason attributed for the slowdown in the industry. Moreover, lower volume of higher value added products reduce scope for export to developing countries.

For example, the rise of Jyothi Laboratories, which has given sleepless nights to Reckitt Benckiser, the 'Ghari' detergent, that has slowly but surely built itself to take on Nirma and HLL in detergents, and finally, the rise of 'Anchor' in oral care, which has become synonymous with 'cat', which walks away with spoils when two monkeys fight HLL and Colgate.

This would bolster employment and supply chains, and also provide high visibility for FMCG brands in organised retail markets, bolstering consumer spending and encouraging more product launches. According to the estimates, by India population will be around 1.

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market share of fmcg companies in india 2018

GST and demonetisation are expected to drive demand, both in the rural and urban areas, and economic growth in a structured manner in the long term and improve performance of companies within the sector.

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History of FMCG in India