India has emerged as the most optimistic market in the world in terms of consumer confidence. Its consumer market is depicted by diverse religions, regions, languages, economic and social status and urban-rural mix. Indian FMCG market is powered mainly by domestic consumption. It has grown at a CAGR of almost 16% in past few years and expected to become a $74 billion dollar market by 2018 from $28 billion in 2010. Increasing per capita income, rising popularity of organized retail, rise of rural consumers, FDI support and Indian government pro industry policy are the key growth drivers for this industry. There is a huge growth opportunity for the Indian FMCG market especially in rural market, product innovation, premium product segment and overall market penetration.
FMCG sector has been one of the most sought after careers for jobseekers and hence one of the most competitive industry in India. One of the key characteristics of Indian FMCG sector has been its resiliency during recession. It was one of those industries which saw double digit growth in employees’ salary and companies’ net profits alike during recessionary period. FMCG companies are also one of the highest paymasters in top business schools of India.
Multinational corporations view India as a key market and hence are willing to expand their operations in India aggressively. They are lured by growing aspirations of middle class. Multinational Corporations have an edge over homegrown companies in terms of superior technology and access of capital while Indian companies have better understanding of rural markets and wider distribution networks.
Large part of this sector (almost 80%) is still unorganized and spread in rural areas. Top FMCG firms attract highly qualified talent from premium B- Schools and open market. For next few years Indian FMCG sector will see an estimated growth of 10-12% with rural areas expected to lead the numbers.