How often do you come across these products? Possibly, every time you go grocery shopping.
Most of these brands might also be a part of your everyday routine. Basically, these popular products fall under the FMCG category.
In this article:
- FMCG Full form
- Characteristics of FMCG products
- Types of FMCG and its varied range of products
- Impact of Covid-19 on FMCG sector
- List of top FMCG companies in India
- Historical performance of Nifty FMCG index
What is the Full Form of FMCG? - FMCG Full Form
The full form of FMCG is Fast Moving Consumer Goods. As the name suggests, these products are quick to leave the shelves of a store or supermarket. Because of their high demand and short shelf life, they are called fast moving. FMCG industry includes products that are used by customers on a daily basis like: According to a survey, 94% of people worldwide recognise Coca Cola's logo. So, you can simply imagine the popularity and demand of FMCG products.
With such high demand and a wide range of products, FMCG has constantly been the 4th largest sector in India and the most widespread industry in the world.
Characteristics of FMCG products
1. FMCG products are frequently purchased
FMCG products are used on a daily basis and hence they need to be bought frequently. Examples of such products are milk, bread, medicines, stationery, etc.2. FMCG products are usually available at an affordable price
As this industry provides essential goods which are used on everyday basis, most them are available at a low rate.3. Short shelf life
Certain FMCG products are perishable in nature. Hence, they have to be consumed before they expire. Products like milk and bread, etc. expire within days.Types of FMCG and its varied range of products
The FMCG sector is divided into three major categories.
Let’s look at each of these sectors in detail.
1. Food and beverages
The food and beverages industry holds 19% weightage in the FMCG sector. This section is further classified into four types: The food and beverages industry holds 19% weightage in the FMCG sector. This section is further classified into four types:| Type of food and beverage | Example |
| Confectionery | Lollipops, jawbreakers, candy canes, small pieces of chocolate, fruits and nuts |
| Staple food | Flour, sugar, salt, grains, beans, nuts |
| Non-alcoholic beverage | Smoothies, cold drink, tea, coffee |
| Other foods | Sauces, jams, pickles |
2. Health care
Health care holds 31% of weightage in the sector. It includes over the counter drugs, vitamins & dietary supplements. Over the counter drugs are medicines that we can purchase without a prescription. Here are a few popular range of products from the health care sector.
3. Household and personal care
Household and personal care has 50% weightage in FMCG sector. It includes fabric care, surface care, home insecticides, haircare, skincare and a lot more. Here are a few popular range of products associated with household and personal care.
Impact of Covid-19 on FMCG sector
As Covid-19 hit the Indian economy, many sectors experienced a setback. These majorly included aviation, travel and tourism and real estate sectors. FMCG industries selling essentials were doing well as essential products were in high demand. But, the overall industry was affected due to supply chain breakdowns and stock piling. Many companies had to cut down their operations during lockdown. Hence, the average growth rate of FMCG sector declined to 6.6% in first 3 quarters of FY 2020.
Source: Statista
List of top FMCG companies in India
| Company Name | Star rating | NSE Scrip code | Market Cap (in Rs cr) | Industry |
| HUL | 5 stars | HINDUNILVR | Rs 5,33,432 | Household & Personal products |
| Nestle India | 5 stars | NESTLEIND | Rs 1,65,535 | Food & Beverages |
| ITC | 5 stars | ITC | Rs 2,56,886 | Cigarettes & FMCG others |
| Britannia Industries | 3 stars | BRITANNIA | Rs 90,229 | Food & Beverages |
| Dabur India | 5 stars | DABUR | Rs 99,020 | Household & Personal products |
| Godrej Consumer Products Ltd | 2 star | GODREJCP | Rs 73,977 | Household & Personal products |
| Marico Ltd | 5 stars | MARICO | Rs 54,405 | Household & Personal products |
| Colgate Palmolive | 5 stars | COLPAL | Rs 41,876 | Household & Personal products |
| Procter & Gamble Hygiene Healthcare Ltd | 5 stars | PGHH | Rs 43,954 | Household & Personal products |
| Gillette India | 3 stars | GILLETTE | Rs 17,960 | Household & Personal products |
| Company | Market Capitalization (Rs in Crores) | Samco’s star rating |
| Britannia Industries Ltd. | 88,981 | 5 star |
| Colgate Palmolive (India) Ltd. | 42,317 | 5 star |
| Dabur India Ltd. | 1,01,088 | 5 star |
| Emami Ltd. | 23,517 | 3 star |
| Godrej Consumer Products Ltd. | 75,395 | 2 star |
| Hindustan Unilever Ltd. | 5,77,817 | 5 star |
| ITC Ltd. | 2,54,424 | 5 star |
| Jubilant Foodworks Ltd. | 36,573 | 1 star |
| Marico Ltd. | 54,617 | 5 star |
| Nestle India Ltd. | 1,62,771 | 5 star |
| Procter & Gamble Hygiene & Health Care Ltd. | 44,216 | 5 star |
| Tata Consumer Products Ltd. | 60,813 | 1 star |
| United Breweries Ltd. | 29,118 | 1 star |
| United Spirits Ltd. | 39,507 | 1 star |
| Varun Beverages Ltd. | 28,792 | 1 star |
Historical performance of Nifty FMCG index
Historical Performance of BSE’s FMCG index
To conclude, FMCG industry will always be in high demand as we use their products on daily basis. No matter what happens in the future, you will never stop brushing your teeth or stop taking a bath.
Even during the great Indian recession of 2008 and Covid-19 pendamic, FMCG stocks were performing better than other sectors.
To know more about which FMCG stocks to buy in India - Click here.
Or watch the video here.
https://youtu.be/fmJ8jX43_Z8
Leave A Comment?