FMCG/Consumer packaged goods (CPG) are a type of goods consumed every day by the average consumer. The goods that comprise this category are ones that need to be replaced frequently, compared to those that are usable for extended periods of time. While CPGs represent a market that will always have consumers, it is highly competitive due to high market saturation and low consumer switching costs.

The industry was valued at $37 billion in 2013. The sector is expected to grow 14.7% annually to reach $110.4 billion by 2020. This sector employs 3 million workers. Retail sales are delivered through a network of 8.8 million stores; most of these are single-location family-owned stores.

India's CPG sector is divided into the following categories:

  • Food & beverage – 41%
  • Personal care – 22%
  • Household care – 9%
  • Other – 28%

Top domestic CPG companies and their popular products include:

  • Hindustan Unilever Ltd. – Sunsilk shampoo, Brooke Bond teas, and Fair & Lovely skin cream; largest number of CPG sales in India. This company is a subsidiary of Anglo-Dutch giant Unilever
  • ITC
  • Godrej Consumer Products – Good Knight and Hit insecticide and AERair freshener
  • Dabur – Vatika hair care, avurvedic personal care, and organic food products
  • Nirma – soaps and detergents

Top foreign CPG companies in India and their popular products include:

  • Nestle – milk products and instant noodles
  • Procter & Gamble – Gillette shaving cream and Tide detergent
  • Colgate-Palmolive – toothpaste and Charmis moisturizer

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