Indian FMCG sector is the 4th largest sector in the country, which promises attractive business opportunities for foreign investors. As per reports, the FMCG sector witnessed a healthy and promising FDI flow of 16.28 billion USD from April 2000 to March 2020. This was following a significant increase in private consumption as well as rural income since the last decade.
India’s food and beverage sector is one of the essential components of the FMCG market, which accounts for about 3% of its GDP. Furthermore, the report also reveals that this sector is the single largest employer in the country, with more than a 7.3 million workforce.
Such impeccable signs of growth and statistical records certainly make the Indian FMCG sector and the food & beverage market a booming and lucrative ground for foreign investments.However, with opportunities, there is also a rise in competition and important recent trends, which calls for strategic planning to secure long-term success. For this, foreign investors must essentially collaborate with an FMCG consultant India or consumer good and retail consultant for formulating an India-specific market entry strategy and thereby secure profitable outcomes.
Important Insights into The Market Size And Understanding The Importance Of An FMCG Consultant India
Here are some important pointers and growth trends in the FMCG industry in India, which reflect the fundamental transformation that the sector is going through.
The affluent and elite households from tier 1 towns having income above 10 LPA will account for 48% of the consumption by 2025. This is also characterized by a growing need for premiumizationand increased demand for branded products.
The report also states that all the Tier 2 towns of India will grow by 4.5 times and will account for about 45% of the FMCG consumption by 2025. It will be one of the main sources of growth for premium products – another lucrative playfield for budding foreign companies.
Furthermore, there is also a stark rise in rural consumption in recent times. The Indian rural FMCG market is estimated to reach a valuation of 220 billion USD by 2025.
To garner the benefits of these immeasurable changes in Indian FMCG market structure, foreign investors should adequately capture and analyze the shifting consumer behavior adequately.
A professional FMCG consultant India can be of great help in this regard. With detailed knowledge about the intricacies of the Indian market structure, consumer goods and retail roll out in India consultants can frame a definite market entry strategy after recognizing your goals and estimating the market competition.