FMCG Sector: Moderating Inflation Creates Healthy Appetite

Personal care constitues 50% of the FMCG sector in India Urban India contributed 65% to the overall FMCG sales in 2022 *** One sector on which you can rely on during a downturn or periods of high volatility is fast-moving consumer goods (FMCG). It is a defensive sector which is counted among the most resilient in the economy. In India, the FMCG sector is the fourth largest, with three major segments. Household and personal care constitutes 50 per cent of the sector, healthcare covers 31 per cent, and food and drinks 19 per cent. According to the Nifty FMCG data, other than in 2015, 2016 and 2019, the sector posted double-digit returns in the last 10 years. The exceptional performance of the sector can be attributed to several factors, including an increase in disposable income, growing young population, and heightened brand awareness among consumers. According to the India Brand Equity...