FAST-MOVING CONSUMER
GOODS - ECONOMY
News: FMCG growth in slow lane
despite rural green shoots
What's in the news?
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The Rs 5-trillion domestic fast-moving consumer
goods (FMCG) market continues to encounter obstacles as it strives to achieve
full recovery from the existing slowdown.
Fast-Moving Consumer
Goods (FMCG):
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It is also known as Consumer-Packaged Goods (CPG), refers to products that are sold quickly and at a relatively low cost.
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It is characterized by high-volume sales, rapid inventory turnover, and a wide range of
products meeting consumer needs.
Product Range:
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FMCGs encompass essential everyday items such as food and beverages, toiletries, cleaning
supplies, and other low-cost household goods.
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These goods often have a short shelf life due to
high consumer demand (e.g., soft drinks, confections) or perishability (e.g.,
meat, dairy products, baked goods).
FMCG Industry in India:
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India's FMCG sector ranks as the fourth-largest segment in the nation's
economy.
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In 2022, urban
areas accounted for 65% of total annual FMCG sales, while rural regions
contributed over 35%.
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Household and personal care products constitute 50% of
industry sales, healthcare claims 31-32%, and food and beverage products make
up the remaining 18-19%.
Economic Contribution:
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The FMCG industry in India provides employment
opportunities to approximately 3 million individuals, representing about 5% of total factory employment in the
country.