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The burgeoning middle class Indian population, as well as the rural sector, present a huge potential for this sector. The FMCG sector in India is at present, the fourth largest sector with a total market size in excess of USD 13 billion as of 2012. This sector is expected to grow to a USD 33 billion industry by 2015 and to a whooping USD 100 billion by the year 2025.
This sector is characterized by strong MNC presence and a well-established distribution network. In India the easy availability of raw materials as well as cheap labour makes it an ideal destination for this sector. There is also intense competition between the organised and unorganised segments and the fight to keep operational costs low.
Rural Market for FMCG
Rural FMCG Market of India - Overview
The Rural FMCG Market of India is still unexplored and it provides
tremendous growth opportunities. The loan waiver announced in the Union Budget 2008, would certainly facilitate further growth of the India agriculture sector.
The Rural FMCG Market of India is on the verge of registering substantial expansion across the country. The Indian Rural FMCG market is mostly unorganized and it is generally dominated by small time retailers. The organized FMCG market is only confined to the urban areas of India. Rural India mostly depends on agriculture, directly or indirectly for livelihood.
Further, almost 70% of Indian population lives in rural India in around 6,00,000 villages. Rural India offers tremendous growth prospects for the FMCG industry.
Facilitation of better rural infrastructure like roads, telecommunication, electricity, supply chain, and transportation would propel the growth of Rural FMCG Market of India. Further, very low per capita consumption of FMCG products also provide tremendous opportunity for the growth of Rural FMCG markets in India.
The FMCG sector, which offers tremendous growth prospects are Food and beverage sector, health care and personal care. Presently, rural...