Sale of fast moving consumer goods (FMCG) remains unaffected by the current slowdown and is rather anticipated to register a growth of 25% and touch USD 25 billion by end of calendar 2008 as against USD 20 billion in calendar 2007 due to higher consistency in demand for FMCG products throughout the country, according to estimates by Assocham.
The industry group is also of the view that due to increasing consumption patterns towards FMCG products especially electronics and detergents, the rural FMCG sale by end of current fiscal is likely to be one fifth of its total sale projections which means rural FMCG sale will touch volumes of USD 5 billion by end of December 2008.
The factors responsible for increased market penetration in rural FMCG sector, as per Assocham, comprise higher consumption patterns of rural population for products such as consumer durables which include refrigerators, TV sets, electrical appliances as rural India is getting connected with power facilities, personal care products, toiletries & soaps and soft drinks.
The study is based on the feedback given by major FMCG players like Hindustan Unilever, Godrej, Dabur, ITC, Johnson and Johnson, Procter and Gamble, Reckitt and Benckiser, Parley, Britannia, and Nestle.
As per the report, the growth of FMCG in rural areas alone will touch USD 5 billion by this month-end. In 2007, rural sales of FMCG stood at USD 3 billion, Assocham said.