November 24th

FMCG Vs. Non FMCG and size of FMCG industry

Candy, chips and snacks are a few of the most common items which are purchased and consumed worldwide. One of the leading chips, snacks & candy manufacturers in India is Kiwi foods. It is a name that has established itself in the entire region of North India in a very short span of time. This organisation, like other FMCG organizations, plays a vital role in the overall economic development of the country. It has got huge varieties of candies which are manufactured and supplied all along with northern India. The candy manufacturing process is carried out with no or least manual intervention and goes under strict quality check both pre and post-manufacturing.

FMCG and Indian economy:-

The entire economy of the country comes majorly from two categories of industries namely FMCG and Non-FMCG. In terms of FMCG manufacturing of candies, snacks play a very important role and whole a key contribution. Categorisation of products of these two categories is listed below:-

The following list contains only FMCG products:-

  • OTT medicines
  • Candies
  • Snacks
  • Chips
  • Processed foods
  • Beverages
  • Prepared meals
  • Toiletries
  • Cosmetics
  • Baked goods
  • Consumer electronics
  • Frozen foods
  • Cleaning products

The following list contains only Non FMCG products such as:-

  • Clothing
  • Automobiles
  • Sports equipment
  • Glasses
  • Books
  • Computer

Key facts about size of FMCG industry:-

  • The FMCG industry is the fourth largest sector in the Indian economy and generates the largest number of employees.
  • Total FMCG industry size in India alone crossed over $110 billion ( 7.5 lakh crores) in 2020.
  • The FMCG industry is broadly classified into three product categories as home and personal care which accounts for 50% . This category further consists of personal care items such as bathing soap, toothpaste and face cream and home care items such as surface cleaner, toilet cleaner and detergents. Next is Food and beverages which account for 19% which contains staple food such as pulses rice, dairy products, beverages snacks and candies etc. The last is healthcare which accounts for 31%. This category contains medicines that can be purchased without any prescription such as vitamins, cough and cold allergy, feminine hygiene and dermatological.
  • If we talk about the different channels in FMCG, the general trade occupies a huge volume of 80% which includes outlets like wholesalers, grocery, chemist etc. Following the same is modern trade which occupies 10% which includes stores like big bazaar, Spencers etc. E-commerce occupies 5% and others also occupy 5 % only.
  • The flow of these goods begins with the manufacturing unit, and then goes to the clearing and forwarding agent which is also called as C & F.
  • Next from C & F this goes to distributors, from where it further goes to all the wholesalers, which again take it further to the retailers who further sell it to the customers.

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