Indian FMCG Sector: Better Days Ahead | An Aranca Inforgraphic
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The growth rate of the Indian FMCG sector slowed down to 9.4% in 2013 but favourable regulatory changes are projected in the future. Learn more about FMCG sector revenues, segments, composition, retail channels, category penetration & key players in India.
Transcript of Indian FMCG Sector: Better Days Ahead | An Aranca Inforgraphic
- 1. Indian FMCG SectorBetter Days Ahead 3, 4, W?VElia: N0Growth rate in India's fast moving consumer goods (FMCG) sector slowed down to 9.4% in 2013, due to deceleration in 5% __mGDP growth and high ination.In 2013,it accounted for 2.4% in -, -in r? "CIM7F NVMMZIof the country's GDP.However,with GDP growth expected to stay at 7-8% until 2020 and favorable regulatory changesan optimistic scenario is projected.VT; FMCG Sector Revenues (in USD billion)CAGR (2009-15):15.1%2009 2010 2011 2012 2013 2015P" 2020P*For 2015-2020: 2 Normal scenario (CAGR:12.0%) 2 Optimistic scenario (CAGR:17.0%) ~ ProjectedFMCG Sector Composition (2013)67% UrbanUSD 44.9 billion Over the last few years,the Indian FMCG market has grown faster in rural areas than urban regions. In 2013, the market grew 8% in urban areas and 12.2%in rural regions.FMCG Retail Channel Sales (2012)General Trade Modern TradeKirana StoreSupermarket0 Share of general trade in FMCG sales declined to 93.7% In 2012 from 95% in 2010 0 Share of modern trade in FMCG sales is expected to double to 10-12% by 2016.Revenues by Segment 2013 (% Share)U U r" Household _ _H Food Products CarePenetration Levels Of Key Categories (2013)Melted Drinks 40% Soft Drinks 39% Saucelltotich up 15% Noodos/ Vorrnidlli 78% Chocolate:10%Breakfast Cereals 596Sugar smstirum 3%Biscuit and Cookies 93% Bab?F006 35%Skin Cream 32%Toothpaste 77%83% Hair Oil 3995 83% shampoo 33%Fabrlc WhllonorFood Cleaner Mosquito RopollomDlshwash Source:Dabur:AC Nielsen;The Economic Times,Industry estimates;FMCG Roadmap to 2020-Confederation of Indian Industry (Cll);Company Annual Reports:Spark CapitalArancas ViewsBy 2020, India is expected to have the world's highest working age population.which is likely to result in higher purchasing power,thereby boosting consumerism.With rising income.the population is expected to spend more on FMCG.driving the sector's growth.Moreover,the rural FMCG market has significant potential.Categories such as chocolates.breakfast cereals,baby food,and soft drinks currently have very low penetration.but have huge potential.Hence,the growing working age population,the potential in rural market,and market penetration by new categories are going to be the growth drivers for the FMCG sector in India. C omprled b V Anr. 'ud1'l. 1a lvfrnl-(cram2014 Aranca.All Rights Reservedwwwarancacom w r If you wish to reproduce or use this lnfographir:In any format.please email us at syndlcateelararxacom -A-~non~u--