Abstract

The FMCG industry in India has grown significantly due to rising product prices, especially for essential goods, and consumerdriven demand. The market is expected to grow from its 2023 valuation of US$ 167 billion to US$ 615 billion by 2027. GST rationalization is anticipated to lower the cost of FMCG and daily necessities, increasing consumption and fostering the expansion of e-commerce and quick commerce channels. It employs about three million people, making up around 5% of the nation’s total factory workers. FMCG, the fourth-largest industry in India, is essential to the country’s economy; half of all FMCG sales are made up of household and personal care items. In order to withstand disruptions and generate longterm value, businesses in the FMCG sector continue to show resilience by concentrating on effective manufacturing, supply chain management, consumer insights, and digital-first communication strategies. According to the NielsenIQ report, India’s FMCG industry showed consistent growth in the second quarter of FY26, with value growth of 12.9 percent and a 5.4 percent increase in volumes, bolstered by stronger rural demand with a 7.7 percent volume expansion. Currently, the urban portion of this sector accounts for roughly 62% of total revenue; however, in recent years, rural India has become a more significant growth driver. Rising incomes and changing consumer preferences have narrowed the urban-rural divide, with semi-urban and rural areas now making up half of all rural FMCG spending. The results of this study are anticipated to offer some new insights. They will show whether FMCG companies are more likely to invest in sustainable practices, innovation projects, and product upgrades. Initiatives like “Make in India” and “Atmanirbhar Bharat” aim to make Indian manufacturing globally competitive, and policymakers will find the implications of this study to be extremely pertinent.

Keywords: FMCG, E-Commerce, Supply Chain Management, Innovation, Value Chain