A D V I S O R S
FMCG
Special Insight –‘ Food Processing Industry’
THE LOREM IPSUMS
FALL 2012
Contents
Industry Snapshot Industry size & Segmentation FMCG Sector Growth Growth Drivers Food Processing Industry 3 3 4 5 6
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THE LOREM IPSUMS
FALL 2012
Industry Snapshot
• India's FMCG sector is the fourth largest sector in the economy It is also one of the largest employment sectors in the country
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Its principal constituents are Household Care, Personal Care and Food & Beverages. Total FMCG market is in excess of INR 85,000 Crores It is characterized by a o Well established distribution network, o Low penetration levels, o Low operating cost, o Lower per capita consumption o Intense competition between the organized and unorganized segments. FMCG sector has registered a growth rate of 14.5 per cent for the year 2007-08. According to CRISIL anticipation, FMCG sector could touch around INR 140,000 Crores by 2015.
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Industry Size & Segmentation
• The Indian FMCG sector is estimated at US$ 25 billion1 (Rs. 120,000 crores). Sector is fragmented and a substantial part of the market comprises of unbranded and unpackaged products. Industry expected to grow at a CAGR of 12% over next few years to reach a size of US$43 billion by 2013 & US$74 billion by 2018.
Market Segmentation
2% 15% 20% 10% 53% Food & beverages Personal Care Tobacco Household Care Lighting
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THE LOREM IPSUMS
FALL 2012
FMCG Sector Growth
• In the last 2-3 years, it has overcome a slow growth slump to grow between12% - 15%.
FMCG Contribution
Economical
The FMCG sector in India has played a vital role in the growth & development of the country, from making efforts to reach out to maximum consumers through distribution of smaller pack sizes, innovations like single use sachets, to developing innovative products to cater to regional or local tastes and the needs of the niche consumers.
Third-party