FMCG (fast moving consumer goods) is the fourth-largest sector in the Indian economy. It is estimated to be Rs 1,13,000 crore for 2007.
The FMCG market has been exhibiting more than 10 per cent growth since 2005 and is expected to grow at a CAGR of 10-12 per cent over the next few years.
The penetration of many product categories in the segment is still low, and thus, the growth potential of the FMCG industry looks promising.
Toilet soap has the highest penetration at 91.5 per cent.
Some of the key challenges for the sector include complicated tax structure and GST implementation, fragmented and weak agricultural supply chain, and bureaucratic regulatory processes.
6 months ago