NEWS

The Indian FMCG industry witnessed a consumption slowdown in urban markets and degrowth in rural areas in 2021 as the sector was hit hard by higher inflation levels forcing companies to go for successive price increases, according to data analytics firm NielsenIQ

FMCG

FULL FORM  – Fast-moving consumer goods (FMCG) sector

WHAT –

• Products in the market sold quickly and at a reasonably low price
• Examples – meat, vegetables, dairy products, fruits, processed foods, soft drinks

PROPERTIES –

• Lifespan is very short
• Products have usually been sold or replaced within short time
• Although sales profitability is weak in FMCG products relative to others, net profit is still higher as they are sold commercially in a large quantity

IN INDIA –

• 4th largest sector in the Indian economy
• Household and Personal Care accounting for 50% of FMCG sales in India
• Growing awareness, easier access and changing lifestyles have been the key growth drivers for the sector