Trends 2020: FMCG Industry Expectations from the New Decade

Rural consumption has superseded industry expectation and the size of modern retail is estimated to grow 3 times in the next 5 years. A significant change in lifestyle choices as well as substantial increase in disposable income has fueled this growth…

- Amrinder Singh, Director, Bonn Group of Industries

The FMCG industry in India has seen a remarkable transformation over the last two decades. This has been facilitated by rising income levels, urbanisation and changing consumer behavior. The general industry sentiment is positive and optimistic post demonetisation and GST implementation with large players set to gain. The rural consumption has superseded industry expectation with size of modern retail is estimated to grow 3 times in the next 5 years. A significant change in lifestyle choices as well as substantial increase in disposable income has fuelled this growth.

Nonetheless, the changing market dynamics bring with it an array of products that compete for customer loyalty and attention. Here is a look at the trends for the FMCG market in 2020.

Digitisation

Increasing smartphone and Internet penetration will help people in the rural areas easily access online shopping on various e-commerce websites. Availability of easy mobile payment options has led to increase in the number of orders from Tier II & III cities which enables people to get timely delivery at their doorstep.

Multiple Channels of Trade