By IANS,
New Delhi: Driven by growing consumption in rural and semi-urban areas, the fast moving consumer goods (FMCG) market is set to double from $14.7 billion in 2008-09 to $30 billion in 2012, according to an industry lobby.
“FMCG sector will witness more than 50 percent growth in rural and semi-urban India by 2010,” said a study titled “Prospects in the FMCG sector”, released by the Associated Chambers of Commerce and Industry of India (Assocham) here Thursday.
“With growing rural demand, FMCG sector is likely to post a growth of 18-20 percent in the second quarter this fiscal,” it added.
In the first quarter of the current fiscal, growth was around 12 percent.
Assocham said despite the negative impact of deficient rainfall, rural demand was likely to remain robust, with the hinterland accounting for half the sales of FMCG majors Hindustan Unilever and Dabur.
The Indian FMCG sector is the fourth largest sector in the economy with a market size in excess of $14.7 billion.
Demand for personal and fabric wash products including toilet soaps witnessed a growth of 14.2 percent in the first quarter this fiscal, the chamber said.
The oral care segment that includes toothpaste, tooth brush and tooth powder, grew 10.8 percent in the first quarter of 2009-10 and has a market size of Rs.33.6 billion. In this segment, the major growth has been in the tooth brush category.
Skin care and cosmetics, with an Rs.18.5-billion market size, grew 11.52 percent in the first quarter and is expected grow further.
The Rs.80-billion hair care market grew 14.68 percent in the first quarter, Assocham said, adding that the Rs.71.98-billion processed food and beverages sector grew 17 percent in the same period.