Top Fmcg consumer products made in India Sold all over the world over

Who is the number 1 in FMCG sector in India and world?

Fast-moving consumer goods (FMCG) sector is India’s fourth-largest sector with household and personal care accounting for 50% of FMCG sales in India. Growing awareness, easier access and changing lifestyles have been the key growth drivers for the sector. The urban segment (accounts for a revenue share of around 55%) 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 to urban India. Semi-urban and rural segments are growing at a rapid pace and FMCG products account for 50% of the total rural spending.

What FMCG products are exported from India?

The retail market in India is estimated to reach US$ 1.1 trillion by 2020 from US$ 840 billion in 2017, with modern trade expected to grow at 20 25% per annum, which is likely to boost revenue of FMCG companies. The FMCG market in India is expected to increase at a CAGR of 14.9% to reach US$ 220 billion by 2025, from US$ 110 billion in 2020. According to Nielsen, the Indian FMCG industry grew 9.4% in the January-March quarter of 2021, supported by consumption-led growth and value expansion from higher product prices, particularly for staples. The rural market registered an increase of 14.6% in the same quarter and metro markets recorded positive growth after two quarters. Final consumption expenditure increased at a CAGR of 5.2% during 2015-20. According to Fitch Solutions, real household spending is projected to increase 9.1% YoY in 2021, after contracting >9.3% in 2020 due to economic impact of the pandemic. The FMCG sector’s revenue growth 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 raw material prices, along with volume growth and resurgence in demand for discretionary items, are driving growth. The FMCG sector grew by 36.9% in the April-June quarter of 2021 despite lockdowns in various parts of the country.

Number of households shopping on modern-trade channel grew 29.15% YoY in the September quarter and shopping volume on the channel went up by 19.2% YoY.

In September 2021, rural consumption of FMCG increased 58.2% YoY; this is 2x more than the urban consumption (27.7%).

The domestic FMCG market increased 36.9% YoY in April-June 2021.

In the third quarter of FY20 in rural India, FMCG witnessed a double-digit growth recovery of 10.6% due to various government initiatives (such as packaged staples and hygiene categories); high agricultural produce, reverse migration, and a lower unemployment rate. Rise in rural consumption will drive the FMCG market. The Indian processed food market is projected to expand to US$ 470 billion by 2025, up from US$ 263 billion in 2019-20.

Which is the most selling FMCG products in India and exported worldwide?

FMCG giants such as Johnson & Johnson, Himalaya, Hindustan Unilever, ITC, Lakmé and other companies (that have dominated the Indian market for decades) are now competing with D2C-focused start-ups such as Mamaearth, The Moms Co., Bey Bee, Azah, Nua and Pee Safe. Market giants such as Revlon and Lotus took ~20 years to reach the Rs. 100 crore (US$ 13.4 million) revenue mark, while new-age D2C brands such as Mamaearth and Sugar took four and eight years, respectively, to achieve that milestone.

Companies with dedicated websites recorded an 88% YoY rise in consumer demand in 2020. Since then, more businesses have begun to adopt the D2C model, and India is now home to >800 D2C brands looking at a US$ 101 billion opportunity by 2025.

E-commerce companies reported sales worth US$ 9.2 billion across platforms in October and November (2021), driven by increased shopping during the festive season. With festive season sales, Flipkart Group emerged as the leader with a 62% market share.

Advertising volumes on television recorded healthy growth in the July-September quarter, registering 461 million seconds of advertising, which is the highest in 2021. FMCG continued to maintain its leadership position with 29% growth in ad volumes against the same period in 2019. Even the e-commerce sector showed a healthy 26% jump over 2020.

Investments/ Developments

The Government has allowed 100% Foreign Direct Investment (FDI) in food processing and single-brand retail and 51% in multi-brand retail. This would bolster employment, supply chain and high visibility for FMCG brands across organised retail markets thereby bolstering consumer spending and encouraging more product launches. The sector witnessed healthy FDI inflows of US$ 18.59 billion from April 2000 to June 2021.

Fast Moving Consumer Goods (FMCG) play a vital role in our lives to satisfy our basic needs. FMCG products have a short shelf life that is produced in high volumes for rapid consumption.

List of Most commonly sold/exported FMCG goods

  • Beverages
  • Cosmetics
  • Electronic Goods
  • Household Products
  • Medicines
  • Packaged Food
  • Toiletries

The Fast Moving Consumer Goods sector is India’s fourth-largest sector in the Indian Economy. FMCGs have created employment for more than 3 Million people in India.

There are some FMCG Companies in India that make some of the best-known brands in the world, and those brands are used by 2 Billion people every day.

Company Market Share In India By Revenue

No.Company’s NameMarket Share (%)
2Hindustan Unilever (HUL)12%
4Patanjali Ayurved4%
8Godrej Group2%
9GlaxoSmithKline (GSK)1%

While the winning share of local brands continues, international manufacturers like Unilever have also shown how to win at the local level by tailoring their goods to the needs of local markets with brands like Wheel and Surf Excel in the home care sector and Clinic Plus in the beauty & personal care field.

Here is the list of 12 Indian FMCG Brands which were bought billion times-
  • Parle
  • Amul
  • Clinic Plus
  • Britannia
  • Aavin
  • Ghadi
  • Nandini
  • Tata
  • Wheel
  • Milma
  • Vijaya
  • Surf Excel

Josep Montserrat, CEO of Worldpanel Division, Kantar, explained: “Global FMCG brands have great opportunities to grow by considering the specificities of the local market and adapting their offer to the choices, preferences and buying behavior of local consumers. Those brands that are able to respond agilely to the challenge will continue to grow.

Kantar’s annual Brand Footprint study is based on data from 72% of the world’s population; a total of one billion households in 49 countries spanning five continents, representing 85% of global GDP. As part of the study, in the 12 months to November 2018, Worldpanel monitors over 21,400 brands across drinks, meat, dairy, wellness, beauty, and home care.

Over the last decade many Indian companies have slowly but surely been able to make their mark internationally.

Most businesses started to venture out and establish beachheads around early 2000s’, mostly in the GCC / Middle East, that they had a ready indian consumer there. This includes Dabur, Himalaya, Marico, Godrej. In fact, Himalaya first found traction in the Middle East markets before it hit it right even in India.

Surprisingly, Hair Oils and Hair Creams gave these businesses their first hits.

Over time, these business have transitioned massively, progressively reaching out to location audiences, and expanding their portfolios, both organic and through acquisitions. Today, Dabur, Marico, Himalaya are a large business, and they are all pretty much household names in the Mid East with leading market positions in a few hair categories.

A few businesses like Wipro or Godrej – while they have not been able to build their indian brands so much, they have still gone after it through acquisition in the Far East and in Africa.

However, Indian brands have not really cracked the mainstream developed world.. but brands like kama or forest essentials are slowly making their mark in prestige markets too.
Indian businesses and brands primarily export to the non producing countries in the developing world > primarily, South East Asia ( Pakistan, Bangladesh, Srilanka) , Middle East & North Africa , Sub Saharan Africa, and even CIS countries (Russia and those geographies). These countries have an existing Indian diaspora / exposed to Indian culture or have similar tastes and look upon India as a reasonably priced quality product source.

Brands are yet to make any significant dents in markets like US, Europe or even Asian countries like Japan, Korea, Malaysia, Indonesia, etc. > these countries often produce locally, and have different consumer preferences too.

Successful FMCG Exports?

Apart from branded basmati rice ( they are big exporters), Indian companies have succeeded in building a strong export business in Personal Care; driven by Herbal/ Natural propositions. Hair Oils, Hair Creams, Toothpaste, Creams, Shampoos, Deodorants and OTC products like pain balms are actually some of our biggest FMCG exports.

Companies like Dabur, Marico, Himalaya, Emami or even smaller companies like Vasu Health Care ( Trichup Hair Oil) have built successful export businesses with their Personal care portfolio. In fact, many contract manufacturers have built small export businesses catering to specific geographies.

Some of the recent developments in the FMCG sector.

  • In November 2021, Tata Consumer Products (TCPL) signed definitive agreements to acquire 100% equity shares of Tata SmartFoodz Limited (TSFL) from Tata Industries Limited for a cash consideration of Rs. 395 crore (US$ 53.13 million). This move was in line with TCPL’s strategic intent to expand into the value-added categories.
  • In November 2021, Unilever Plc agreed to sell its global tea business to CVC Capital Partners for EUR 4.5 billion (US$ 5.1 billion. The business being sold—Ekaterra—hosts a portfolio of 34 tea brands including Lipton, PG Tips, Pukka Herbs and TAZO.
  • In November 2021, McDonald’s India partnered with an FMCG company ITC to add a differentiated fruit beverage, B Natural, to its Happy Meal, which will be available across all McDonald’s restaurants in South and West India, primarily catering to children aged 3–12 years.
  • In October 2021, Procter & Gamble announced an investment of Rs. 500 crore (US$ 66.8 million) in rural India.
  • In September 2021, PepsiCo commissioned its Rs. 814 crore (US$ 109.56 million) Kosi Kalan foods facility in Mathura, Uttar Pradesh; it is the company’s largest greenfield manufacturing investment in India.
  • In September 2021, Vahdam India, an Indian tea brand, raised Rs. 174 crore (US$ 24 million) as part of its Series D round led by IIFL AMC’s Private Equity Fund.
  • In September 2021, RP-Sanjiv Goenka Group entered the personal-care segment by launching skin and haircare products, aiming at a revenue of Rs. 400-500 crore (US$ 53.84-67.30 million) in the next 4-5 years
  • In September 2021, Adani Wilmar announced the opening of physical stores under the name ‘Fortune Mart’ that will exclusively sell Fortune and other Adani Wilmar brand products.
  • In August 2021, Apnaklub, a Bengaluru-based B2B wholesale marketplace for consumer goods, raised US$ 3.5 million in a seed round from Sequoia Capital India’s Surge, increasing the total funds to US$ 5 million.
  • In August 2021, Soothe Healthcare, an Indian personal hygiene products brand, raised Rs. 130 crore (US$ 17.54 million) in a Series-C round of funding from A91 Partner Partners.
  • In August, Adani Wilmar, a 50/50 joint venture between Adani Group and Singapore-based Wilmar, filed for initial public offering (IPO) to raise up to Rs. 4,500 crore (US$ 607.13 million) for expansion.
  • In the fourth quarter of FY21, e-commerce sales of Marico Ltd., Hindustan Unilever Ltd., Dabur India, ITC and Godrej Consumer Products Ltd. were 8%, 6%, 5%, 5%, and 4%, respectively, of the total FMCG sales.
  • In July 2021, Emami Ltd. increased its stake (by 15% to 46%) in Helios Lifestyle, which sells male-grooming products under The Man Company brand in line with its ambition to tap emerging online opportunities.
  • In July 2021, Tata Consumer Products Ltd. introduced ‘Eight O’Clock’, America’s Original Gourmet Coffee, under D2C, besides Tata Coffee 1868 and Sonnets, as a part of its strategy to enhance its D2C approach for select coffee brands and their specific websites. The company plans to add more brands in the D2C space as these three coffee brands stabilise.
  • In July 2021, HUL launched in-store vending machine model, Smart Fill machine, for its home care products with the aim to reuse and recycle plastic. Smart Fill machine will allow consumers to reuse plastic bottles by refilling products from its brands like Surf Excel, Comfort and Vim.
  • As of June 2021, e-commerce share has already touched 7-8% for some of the largest FMCG companies in the country, according to Accenture India.
  • In June 2021, Dabur India announced its Rs. 550 crore (US$ 75.6 million) investment to set up a new plant in Madhya Pradesh for manufacturing of food products, ayurvedic medicines and health supplements.
  • In May 2021, Tata Digital Ltd., a 100% subsidiary of Tata Sons, acquired a 64.3% stake in supermarket grocery supplies, the business-to-business arm of BigBasket in tandem with Tata Group’s strategy to build a digital consumer ecosystem. According to the Economic Times, the deal is worth U$ 1.8-2 billion.
  • In May 2021, Nepal-based CG Corp Global, known for its popular noodles brand Wai Wai, announced its plan to invest Rs. 200 crore (27.42 million) to set up two new manufacturing plants in West Bengal and Uttar Pradesh.

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