June 26th 2024.
According to a recent report, the FMCG (Fast Moving Consumer Goods) sector in India is expected to experience a growth rate of 7-9% by 2024. This can be attributed to the efforts of the government in stimulating consumption and creating more job opportunities.
The report, released by ICICI Lombard General Insurance, highlights the potential for sustained growth in the FMCG industry in India. It predicts a significant expansion of 7-9% in the year 2024. With a current economic footprint of over Rs 9.1 trillion, the FMCG industry plays a crucial role in driving the country's economic growth and generating employment.
The report also sheds light on the increasing use of online channels for FMCG sales, which have been valued at Rs 1.7 trillion. This includes segments such as Direct-to-Consumer (D2C), which reflects the rapid digital transformation and evolving consumer purchasing behavior. The report acknowledges the industry's adaptability to changing market dynamics and its proactive approach in catering to digitally savvy consumers.
The FMCG industry faced significant challenges during the pandemic, with the rural sector experiencing degrowth for several quarters. However, the industry has shown resilience and adapted to evolving consumer trends, resulting in a notable increase in volume and value growth in the second half of 2023. The report also highlights the impressive 8.6% volume growth witnessed nationwide in the third quarter of 2023, with rural markets contributing significantly at 6.4%.
The report credits key government initiatives such as Gati Shakti and Amrit Kaal Vision 2047 for fortifying the FMCG sector's foundation and fostering long-term growth. As a result, the corporate risk index for the FMCG sector has decreased from 68 to 66.
In conclusion, the FMCG sector in India is expected to experience sustained growth in the coming years, driven by government initiatives and the industry's adaptability to changing market dynamics. With a strong economic footprint and a crucial role in the country's economic growth, the FMCG industry is poised for success in the future.
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