Fast-moving consumer goods have high inventory turnover and contrast with speciality items, which have lower turnover and higher inventory carrying costs.
Many retailers carry only FMCGs, especially hypermarkets, big box stores, and warehouse club stores. Small convenience stores also stock fast-moving goods; the limited shelf space is filled with higher turnover items.
top-10-fmcg-companies-in-india Top 10 FMCG Companies In India
  The Overview of the FMCG Industry.
Overview of FMCG Industry in India
Fast-moving consumer goods (FMCG) is the fourth largest sector in the Indian economy. The sector is divided into three main segments: food and beverages, which accounts for 19% of the sector, healthcare, which accounts for 31% of the share, and household and personal care products, which accounts for the remaining 50% of the sector. The urban segment contributes to about 55% of the sales share, while the rural segment accounts for 45%. The rise in rural consumption will drive the FMCG market.
According to Nielsen, the Indian FMCG industry grew by 9.4% in the January-March quarter of 2022, supported by consumption-led growth and value addition from higher product prices, especially in staples. Final consumption expenditure grew at a CAGR of 5.2% during 2015-20. According to Fitch Solutions, real household spending is expected to increase by 9.1% in 2021, following a 9.3% decline > in 2020 due to the economic impact of the pandemic.
Sales growth in the FMCG sector will double from 5-6% in FY21 to 10-12% in FY22, according to CRISIL Ratings. Price increases across product categories will offset the impact of rising commodity prices, while volume growth and resurgent demand for consumer goods will drive growth.
The FMCG market in India is expected to grow at a CAGR of 14.9% to USD 220 billion by 2025 from USD 110 billion in 2020. The Indian processed food market is expected to grow to USD 470 billion by 2025 from USD 263 billion in 2019-20.
The Indian online grocery market is estimated to exceed a turnover of around Rs 22,500 crore (US$ 3.19 billion) in 2020, a significant jump of 76% year-on-year. The gross merchandise value (GMV) of the online grocery segment in India is expected to increase 18-fold over the next five years, reaching US$37 billion by FY25. As of February 2021, out of 39 Mega Food Park projects, 22 were operational, 15 were under implementation and 2 were under in-principle approval.
 
Many FMCG brands are partnering with e-commerce platforms like Dunzo, Flipkart, Grofers and BigBasket to deliver products directly to consumers’ doorsteps during the pandemic COVID -19. In the fourth quarter of FY21, e-commerce sales of Marico Ltd, Hindustan Unilever Ltd, Dabur India, ITC and Godrej Consumer Products Ltd accounted for 8%, 6%, 5%, 5% and 4% of total FMCG sales respectively. As of June 2021, e-commerce already accounted for 7-8% of some of the country’s largest FMCG companies, Accenture India said.
FMCG companies are looking to invest in energy-efficient facilities to benefit society and reduce costs in the long run. Dabur India has expanded its rural network from 44,000 villages in March 2019 to over 52,000 villages in March 2020. The company is targeting up to 60,000 villages in 2020-21. The sector recorded a healthy FDI volume of $18.19 billion from April 2000 to March 2021.
In January 2021, Udaan received $280 million (~R2,048 crore) in funding from existing and new investors, including Lightspeed Venture Partners and Tencent. With the latest capital injection, Udaan has raised a total of US$1.15 billion to date. Although the company did not provide valuation details, sources indicated that the valuation after this deal is over US$3 billion.
Growing awareness, easier access and changing lifestyles are the key growth drivers for the consumer market. The focus on agriculture, MSMEs, education, health, infrastructure and tax concessions under the Union Budget 2019 20 should have a direct impact on the FMCG sector. The initiatives taken to increase the disposable income of common people, especially in rural areas, will have a positive impact on the sector.