“Looking ahead, the FMCG sector in India is poised for continued growth, with a projected 7 to 9 per cent expansion in 2024,” a report by ICICI Lombard General Insurance said.
The FMCG industry now has a growing economic reach, valued at over Rs 9.1 trillion, and has a significant role in driving India's economic growth and job creation, the report said.
The online sales channel for FMCG is also growing and is valued at Rs 1.7 trillion. Segments like D2C reflect the rapid digital transformation and changing consumer purchasing behaviour.
"Such digitization trends underline the industry's adaptability to changing market dynamics and its proactive approach to digitally savvy consumers," the report said.
The FMCG industry was struggling after the pandemic and the rural sector had been declining steadily for some quarters.
However, the industry demonstrated resilience and adaptability amid emerging consumer trends and saw significant growth in volume and value growth in the second half of 2023.
The report said Q3 2023 witnessed an impressive volume growth of 8.6 per cent across the country, with rural markets contributing a significant growth rate of 6.4 per cent, indicating a favorable consumption environment.
Key government initiatives like Gati Shakti and Amrit Kaal Vision 2047 played a vital role in strengthening the foundation of the FMCG sector and promoting long-term growth.
Based on these factors, "the corporate risk index for the FMCG sector declined to 66 from 68," the report said.
The FMCG industry now has a growing economic reach, valued at over Rs 9.1 trillion, and has a significant role in driving India's economic growth and job creation, the report said.
The online sales channel for FMCG is also growing and is valued at Rs 1.7 trillion. Segments like D2C reflect the rapid digital transformation and changing consumer purchasing behaviour.
"Such digitization trends underline the industry's adaptability to changing market dynamics and its proactive approach to digitally savvy consumers," the report said.
The FMCG industry was struggling after the pandemic and the rural sector had been declining steadily for some quarters.
However, the industry demonstrated resilience and adaptability amid emerging consumer trends and saw significant growth in volume and value growth in the second half of 2023.
The report said Q3 2023 witnessed an impressive volume growth of 8.6 per cent across the country, with rural markets contributing a significant growth rate of 6.4 per cent, indicating a favorable consumption environment.
Key government initiatives like Gati Shakti and Amrit Kaal Vision 2047 played a vital role in strengthening the foundation of the FMCG sector and promoting long-term growth.
Based on these factors, "the corporate risk index for the FMCG sector declined to 66 from 68," the report said.
