Market size of Food & Beverage Sector

The FMCG market in India is expected to reach US$ 220 billion and likely to be the fifthlargest by 2025. E-commerce segment is forecast to contribute 11% to the overall FMCG sales by 2030

FMCG is the fourth-largest sector in the Indian economy.

India’s household and personal care is the leading segment, accounting for 50% of the overall market. Healthcare (31%) and food and beverages (F&B) (19%) comes next in terms of market share.

Growing awareness, easier access and changing lifestyles have been the key growth drivers for the sector.

The number of internet users in India is likely to reach 1 billion by 2025.

Real household spending is projected to increase at 9.1% YoY in 2021.

Opportunities in various segments

  • All
  • Sourcing base
  • Penetration
  • Online FMCG
  • Premium products
  • Innovative products
  • Rural market

Sourcing base

IIndian and multinational FMCG players can leverage India as a strategic sourcing hub for costcompetitive product development and manufacturing to cater to international markets.


Low penetration levels offer room for growth across consumption categories. Major players are focusing on rural markets to increase their penetration in those areas.

Online FMCG

The online FMCG market is projected to reach US$ 65 billion in 2022 from the US$ 20 billion recorded in 2017.

Premium products

With the rise in disposable income, mid- and high-income consumers in urban areas have shifted their purchase trend from essential to premium products.

Innovative products

Indian consumers are highly adaptable to new and innovative products. For instance, there has been an easy acceptance of men’s fairness creams and bread grooming products, flavoured yoghurt, cuppa mania noodles.

Rural market

Leading players of consumer products have a strong distribution network in rural India. They also stand to gain from the contribution of technological advances like internet and e-commerce to better logistics.

Fractional ownership

The Indian online grocery market is estimated to exceed sales of about Rs. 1,310.93 billion (US$ 17.12 billion) by 2026, at a CAGR of 28.99%

Why We Choose

  • Organised sector is expected to grow as the share of unorganised FMCG market has seen a fall with increased level of brand consciousness
  • Growth in modern retail will augment the growth of organised FMCG sector
  • Low penetration levels of branded products in categories like instant foods indicating a scope for volume growth.
  • Investment in this sector attracts investors as FMCG products have demand throughout the year.Increase in food parks to 17, food processing capacity to 1.41 million and food labs to 42.
  • Rural consumption has increased, led by a combination of increase in income and higher aspiration levels. There is an increased demand for branded products in rural India.
  • Huge untapped rural market.
  • Availability of products has become way easier as internet and different channels of sales has made the accessibility of desired product to customers more convenient at required time and place
  • Online grocery stores and online retail stores like Grofers, Flipkart, and Amazon are making FMCG products more readily available.
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