We all know that the current generation is majorly dependent upon the FMCG (fast-moving consumer goods) because this generation has been exposed to the ready to consume goods so they have lost the habit of preparing the things from the scratch. This generation expects to have everything served in their hands so that their efforts are reduced to a great extent as well as they can receive ready to use things on the go. Since we all are aware of the benefits of the FMCG and the continuous growth of this industry. Stay tuned with the blog to know more about the future of the FMCG industry in our country and how it will evolve till 2020.
Indian FMCG sector report:-
Between 2016 – 2020, the Indian FMCG market is expected to grow at a CAGR by 21%.
Rise in rural consumption has also resulted in boosting the FMCG sales that have grown at a CAGR by 14.6% during the period of 2016 – 2025. A major reason for this growth is that disposable income has increased at CAGR by 4.1%.
The middle-income class population is supposed to grow at CAGR by 10.8% which is estimated to get doubled by the end of 2020.
Growth and factors:-
There are several factors on which the growth of this FMCG industry is dependent and we will list down them below:-
Increased disposable income:-
The rural market implies higher spending power followed by creating an increased demand for premium products.
Mobile and Smartphone usage:-
In rural and urban India – the number of mobile internet users has reached upto the score of 420M by June 2017 and we can witness relative increment in the stats within the upcoming years.Since the smartphone usage has been increased tremendously, we can state that the e-companies providing the FMCG has increased as well due to which the production of such goods has also escalated resulting in the growth of the FMCG industry in your country over the period of time.
Tier 2 and Tier 3 cities:-
The growth rate in such cities is increasing tremendously over the period of time from 2011- 2015 so companies like Patanjali, Wipro, Nestle are slowly diversifying and expanding their business in our country because the trade is increasing due to which these cities are becoming advance when it comes to the goods that are being provided to the people living over there.
Indian FMCG focus factors:-
People are moving towards a modern way of living and they are adopting it for the sake of making their lives much easier so that everything they use is almost ready to eat and consume as well.
The change in the lifestyle has shifted the usage of the FMCG. It is expected that the annual growth of these products is increasing by 20% which is a great boost for the FMCG industry in a country like India.
Household and personal care equipment are also in high demand now resulting in leading segments of 50% of the overall market and 24% of the hair care products.
Conclusion:- From the information mentioned above; we can clearly state that the change in the lifestyle of people in our country can clearly witness the boost in the FMCG industry because people are adopting modern way of living and they need everything within their comfort zone which is quick and easy to access, so we can conclude that surely in upcoming years we can expect a huge increment in the FMCG industry in our country.