Consumer packaged products are another name for fast-moving consumer goods, or FMCG. All consumables that individuals regularly purchase, excluding groceries and pulses, fall under this category. Toilet soaps, detergents, shampoos, toothpaste, shaving products, shoe polish, packaged foods, and domestic accessories are the most often found items on the list. Some technology devices are also included. These products have a high return rate and are intended for daily or regular consumption. With a total market value above US$ 13.1 billion, the FMCG industry in India ranks as the fourth largest sector in the country. It is characterized by a well-established distribution network, fierce competition between the organized and unorganized divisions, cheap operating costs, and a substantial presence of multinational corporations. India has a competitive edge due to the availability
FMCG
ITA > FMCG
of essential raw commodities, lower labor costs, and its presence along the whole value chain. From US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015, the FMCG market is expected to triple. India’s poor penetration rate and per capita use in the majority of product categories, such as toothpaste, jams, skin care, hair wash, etc., point to unrealized market potential. The growing Indian population, especially in the middle class and rural areas, offers branded goods manufacturers a chance to win over customers. Consumer ‘upgrading’ in the more established product categories is also anticipated to contribute to growth. By 2010, 200 million people are predicted to switch to packaged and processed foods, so India needs to invest about US$28 billion in the food processing sector.