Flourishing FMCG across rural India
The FMCG market will further be driven by an increase in rural consumption. By 2025, the Indian processed food market is expected to reach USD 470 billion, up from USD 263 billion in 2019-20. According to Nielsen estimates, rural areas account for 39% of sales in the fast-moving consumer goods business. This indicates there is still room for enterprises to expand in these markets. Many global retailers have begun investing in the Indian market as they eye huge and rewarding opportunity here.
With significant swathes of rural Indian consumers expected to convert from unbranded, loose products to branded products, there is a huge opportunity for FMCG players to make more room in India's villages and provide essentials like soaps, shampoos, biscuits, beverages, and packaged goods, at lower and affordable prices.
This macro-PDF series examines the opportunity for FMCG players to expand further in India’s promising rural market, analyzing growth from a People, Development and Financial angle.
