The study said that Retail and FMCG markets in India are exponentially growing and are expected to grow at 20 per cent and 21 per cent respectively per annum.
FMCG (fast moving consumer goods )market is expected to reach from the current level of US $49 billion to US $103.7 billion by 2020.
Releasing the study, the ASSOCHAM spokesman said, though the attention on the affluent and elite households in India, but the major focus has been in metros, state capitals and larger towns.
There is a strong and growing market in the next tier of towns with population of less than 1 million, these towns number more than 600 spread in the width and breath of India. It is estimated that these 600 towns will add another 30 per cent of elite/affluent households and is a sitting market set to be grabbed.
The rural FMCG market in India is expected to grow at a CAGR of 14.6 per cent, and reach US $220 billion by 2025 from US $29.4 billion in 2016. E-commerce and digital connectivity is not limited to the urban localities, with rural population using these services with high penetration of smart phones, credit cards/ debit cards and online banking services.
There are customers sitting in far and wide corners of India waiting to be serviced. Making their products available to them is next big challenge before large FMCG companies.