FMCG industry poised to grow at 16% in FY2008-09

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New Delhi, May 20 (UNI) As a consequence of enhanced salaries of the corporate sector and growing aspirations of consumers, the Fast Moving Consumer Goods (FMCG) industry is poised to clock a 16 per cent growth in sales during 2008-09 as compared to 14.5 per cent achieved in the last fiscal.

The other factors which are spurring the demand of the FMCG sector include rapid urbanisation, increased literacy and growing consumer demand along with various incentives proposed in the Union Budget 2008-09 including the enormous farm loan waiver scheme worth Rs 60,000 crore, A FICCI survey today revealed.

According to the survey, the fast growing segments such as value added and aspirational products which have spurred the growth of the FMCG during April-March 2007-08 are expected to drive growth further during the April-June quarter of 2008 and during April-March 2008-09.

Consumers' preferences for FMCGs are shifting towards higher lifestyle categories like skin care, shampoos, deodorants, anti-aging solutions, fairness products and men's products in particular.

The sectors which are projected to achieve excellent growth of 20 per cent and above during the first quarter of the financial year 2008-09 are shaving cream (22 per cent), skin/fairness cream (21 per cent), tooth powder (21 per cent), anti-dandruff shampoos (22 per cent), hair dyes (30 per cent), cleaners/repellants (24.5 per cent), deodorant (40 per cent) and dish wash (20 per cent).

The sectors that are projected to achieve high growth between 10-20 per cent are: soap and toiletries (14 per cent), toilet soap (10 per cent), fabric wash (12 per cent), washing powder (13 per cent) detergent cakes (11 per cent), liquid detergent (13 per cent) laundry soaps/ bars (11 per cent), personal wash (14 per cent), tooth brush (12 per cent), hair care (16 per cent) coconut oil (12 per cent), tooth paste (16 per cent), personal health care (16 per cent), oral care (17 per cent), skin care and cosmetics (19 per cent), branded coconut oil (18 per cent) and feminine hygiene (13 per cent).

The range of products covered by FICCI Survey total to about 28 items including soap and toiletries, laundry soaps, detergent cakes, washing powder, dish wash, toilet soap, tooth paste, tooth powder, tooth brush, fairness cream, shaving cream, deodorant, coconut oil, shampoos, hair dyes, feminine hygiene, cleaners and repellents etc.

The sectors which are projected to achieve excellent growth of 20 per cent and above during the financial year 2008-09, that is April-March 2008-09 are: shaving cream (23 per cent), skin care and cosmetics (20 per cent), skin/fairness cream (22 per cent), tooth powder (22 per cent), shampoos (21.3 per cent), anti-dandruff shampoos (23 per cent), hair dyes (30 per cent), hair care (30 per cent), cleaners/repellents (25.2 per cent), deodorant (40 per cent) and dish wash (21 per cent).

The sectors that are projected to achieve high growth between 10-20 are: soap and toiletries (16 per cent), toilet soap (16 per cent), fabric wash (13 per cent), washing powder ( 13.5 per cent) detergent cakes (12.2 per cent), liquid detergent (14.2 per cent), laundry soaps/ bars (11 per cent), personal wash (16 per cent), tooth brush (13 per cent), coconut oil (13 per cent), branded coconut oil (18 per cent), tooth paste (17 per cent), personal health care (16 per cent), oral care (18 per cent) and feminine hygiene (15 per cent).

The substantial increase in the salaries and perks offered to employees in the corporate sector at regular intervals and the recent step taken by the government to raise salaries of government employees are helping consumers to be strong with increased demand for life-style products, the survey stated.

Increased consumer confidence would raise the expectation level of the industry and stimulate growth in the FMCG segment, it added.

UNI PDT MP HT1937

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