Latest Market Changes in The FMCG Industry, with Respects to Spices & Herbs

The fast-moving consumer goods in the (FMCG) sector is India’s fourth-largest sector with household and personal care accounting for 50% of FMCG sales. Growing awareness, more comfortable access, and dynamic lifestyles have been the key growth operators for this sector.

- Kriti Soni

INTRODUCTION

The urban segment (accounts for a revenue share of around 55%) is the largest contributor to the overall revenue generated by the FMCG sector in India. However, the last few years, FMCG market has grown at a faster pace in rural India compared to urban India. Semi-urban and rural segments are growing at a rapid pace and FMCG products account for 50% of the total rural spending.

Ayurvedic FMCG industry is based on the augmentation and marketing of products between food drinks, health, domestic and personal care, etc. In the current scenario, more than 30,000 proprietary and 1500 classical products are available in the market. The market of Ayurvedic FMCG products is estimated to record a combined annual growth rate (CAGR) of 16% between 2016 and 2021 and will grow from the current $ 500 million to $ 1.1 billion by 2021. Although many FMCG products advertise the estimated results, the Ayurvedic FMCG industry is largely irregular.

The shift toward natural products has gathered momentum. Also, companies of all sizes are racing to match the pace. This article reviews a snapshot of current trends in the FMCG market concerning herbs and spices that will provide development opportunities and strategies adopted by the multi-billion-dollar market.

TRANSFORMATION IN INDIAN FMCG SECTOR