India’s FMCG market to grow 9-10% this year

Are you an FMCG exporter? Is India part of your plan?

According to market researcher Nielsen, India’s fast-moving consumer goods (FMCG) market is expected to grow 9-10 per cent in the January-December period, matching the expansion rate in 2019.

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There are two shifts in the Indian FMCG market – one is to branded products and the other is to online e-commerce.

A shift towards branded products has been driven by the GST.

“Following the implementation of GST (Goods and Services Tax), a lot of unorganised players have exited the market across different FMCG categories,” said Mr B Sumant, ITC executive director of FMCG. “As a result, there has been a clear shift in consumption trend from unbranded to branded products.”

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Pictured above – the top Indian FMCG stocks

FMCGs can be divided into several different categories including:

Processed foods: Cheese products, cereals, and boxed pasta

Prepared meals: Ready-to-eat meals

Beverages: Bottled water, energy drinks, and juices

Baked goods: Cookies, croissants, and bagels

Fresh, frozen foods, and dry goods: Fruits, vegetables, frozen peas and carrots, and raisins and nuts

Medicines: Aspirin, pain relievers, and other medication that can be purchased without a prescription

Cleaning products: Baking soda, oven cleaner, and window and glass cleaner

Cosmetics and toiletries: Hair care products, concealers, toothpaste, and soap

Office supplies: Pens, pencils, and markers

Shoppers in India are leaping from buying unbranded at “mum and dad” stores to online purchasing.  

The most popular e-commerce categories, not surprisingly, are non-consumable goods—durables and entertainment-related products. The online market for buying groceries and other consumable products is growing, as companies redefine the efficiency of delivery logistics which shorten delivery times. While non-consumable categories may continue to lead consumable products in sheer volume, gains in logistics efficiency have increased the use of e-commerce channels for acquiring FMCGs.

Author: Stephen Manallack

Former President, Australia India Business Council, Victoria and Author, You Can Communicate; Riding the Elephant; Soft Skills for a Flat World (published by Tata McGraw-Hill INDIA); Communicating Your Personal Brand. Director, EastWest Academy Pty Ltd and Trainer/Speaker/Mentor in Leadership, Communication and Cross Cultural Communication. Passionate campaigner for closer western relations with India. Stephen Manallack is a specialist on “Doing Business with India” and advisor/trainer on “Cross-Cultural Understanding”. He is a Director of EastWest Academy Pty Ltd which provides strategic advice and counsel regarding business relations with India. A regular speaker in India on leadership and global communication, his most recent speaking tour included a speech to students of the elite Indian university, Amity University, in Noida. He also spoke at a major Federation of Indian Chambers of Commerce and Industry (FICCI) global summit, the PR Consultants Association of India in Delhi, the Symbiosis University in Pune and Cross-Cultural Training for Sundaram Business Services in Chennai. He has visited India on business missions on 10 occasions and led three major trade missions there. He provides cross-cultural training – Asia and the west.

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