FMCG sector high on confidence in FY09, to grow by 16 percent: FICCI

• IBTimes RSS
• Print
• E-Mail
• digg
• Del.icio.us

India's booming retail market, estimated at about $300 billion, is growing at a brisk pace of 30 percent per annum, driven by rising middle class incomes and an increase in demand for branded products.

According to FICCI or Federation of Indian Chambers of Commerce and Industry, rising rural and middle-class income and the growth of the retail industry have boosted the demand for consumer goods in the world's second fastest growing economy.

Sales in the retail sector will grow by 16 percent in FY09 compared to 14.5 percent a year earlier, FICCI said.

"(The) survey projects higher growth across sectors in the FMCG segment in view of the growing economic fundamentals, increased literacy, rapid urbanization, rising aspiration levels, growing consumer demand," FICCI said, adding that increase in salary of both private sector as well as public sector employees would boost the growth of FMCG segment.

The survey noted that consumers' preference is moving to higher lifestyle categories like skin care, shampoos, deodorants, anti-aging solutions, fairness products and men's grooming products.

The FICCI survey, covered about 28 items, including soap and toiletries, laundry soaps, detergent cakes, washing powder, dish wash, toilet soap, tooth paste, tooth powder, tooth brush, fairness cream, shaving cream, deodorant, coconut oil, shampoos, hair dyes, feminine hygiene, cleaners and repellents, etc.

Of these, during the first quarter of fiscal year 2009 (i.e. April-June 2008), at least five products are set to grow at 20 percent and above with hair dyes, cleaners/repellents and deodorants set to grow at 30 percent, 24.5 percent and 40 percent respectively.

During the same period, oral care products, branded coconut oil and skin care and cosmetics are set to grow by 17 percent, 18 percent and 19 percent respectively.

Interestingly, the products forecast to post the slowest growth are toilet soap (10 percent), laundry soap/bars (11 percent), detergent cakes (11 percent), fabric wash (12 percent) and coconut oil (non-branded) (12 percent).

• 1
• 2