Growth of FMCG Industry in India

Growth of FMCG Industry in India - Infographic

The FMCG industry in India is expected to grow between 4.5-6.5% in 2024, on the back of continued strength in the sector and the Indian economy.

Advantage India

Growing
Demand

*Indian food processing market size reached US$ 307.2 billion in 2022 and is expected to reach US$ 547.3 billion by 2028, exhibiting a growth rate (CAGR) of 9.5% during 2023-2028.

*Indian dairy firms are projected to grow 11-13% in FY26, led by value-added products, with improved margins and Rs. 3,400 crore (US$ 398 million) capex.

*India’s Rs.鈥�46,571鈥痗rore (US$鈥�5.29鈥痓illion) snack market is seeing startup challenges to legacy brands and is set to reach Rs.鈥�1,01,811鈥痗rore (US$鈥�11.57鈥痓illion) by 2033, with namkeen adding Rs.鈥�39,591鈥痗rore (US$鈥�4.5鈥痓illion) by 2029.

Attractive
Opportunities

*Increased rural consumption presents an opportunity for expanding distribution networks in tier-2 and tier-3 cities.

*The quick commerce market could reach between US$ 25 billion and US$ 55 billion by 2030, driven by an increase in high-frequency, high-value users.

*India’s healthy snack market, led by makhana, is projected at Rs. 20,000 crore (US$ 2.32 billion) by 2030, driven by functional, natural options, quick commerce, and premiumisation.

*FMCG giants are gearing up to capitalise on the heating Indian pet food market, driven by the rise in pet ownership and disposable income of owners.

Policy
Support

*The Union Budget 2025-26 provides a strong push to consumer spending, particularly benefiting the FMCG industry. The increase in disposable income, rural development focus, and MSME support create an ideal environment for growth.

*MoFPI has approved over 1.44 lakh food processing projects through its flagship schemes to boost rural economies, strengthen supply chains, and promote Indian brands globally.

Higher
Investments

*ITC Ltd. plans Rs. 20,000 crore (US$ 2.33 billion) investment over the next five to six years, focusing on FMCG growth, margin expansion, new product launches, horticulture, and AI-driven operations.

*Amul will set up the world's largest curd plant in Kolkata, West Bengal, with an investment of Rs. 600 crore (US$ 68.6 million), processing 10 lakh kilograms (KG) daily.