Food and Beverages
India's market for fast moving consumer goods (FMCG) is expected to more than double to $104 billion by 2020 from the present level of $49 billion. FMCG is the fourth largest sector in the Indian economy.Household and Personal Care is the leading segment, accounting for 50 per cent of the overall market. Health care (32 per cent) and Food & Beverages (18 per cent) comes next in terms of market share.
The beverage market in India is quite underdeveloped in terms of per capita consumption of 9.4 litres in 2015, compared to the more mature such as U.S. and UK, with per capita consumption of 347.3 litres and 162.9 litres, respectively, in such period. It's is expected to almost double and reach 18.4 litres in 2020. The Indian Beverage market has been driven by innovation, particularly due to increasing preferences of consumers towards product variety as well as towards healthier beverages.
Urban markets account for the major share (65 per cent) of total revenues in the FMCG sector in India. There is a lot of scope for growth from rural markets with consumption expected to grow in these areas as penetration of brands increases.
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