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India's fast-moving consumer goods (FMCG) industry is undergoing a major transformation, with online channels expected to account for 40 per cent of all FMCG consumption by 2030, according to a report by RUBIX.
The report highlighted that this change is being significantly driven by the rise of quick commerce, especially in urban areas. It stated, "By 2030, 40 per cent of all FMCG consumption in India is expected to take place through online channels". The report also mentioned that consumers are increasingly giving priority to convenience over cost, and this preference is reshaping the way they purchase daily essentials. Currently, quick commerce platforms contribute nearly 35 per cent of FMCG companies' total e-commerce revenue, marking a fundamental shift in the structure of online sales. Urban shoppers, supported by wider smartphone access and a growing culture of online product discovery, are playing a central role in this digital shift. This trend has also created a strong base for digital-first brands to expand rapidly in India. The country's booming FMCG industry is further being fuelled by the rapid growth of its middle class. This segment makes up nearly 31 per cent of India's population, larger than the entire population of the United States, and is projected to rise to 38 per cent by 2031 and 60 per cent by 2047, eventually crossing over one billion people. With greater disposable incomes, this section of society is becoming the key driver of consumption growth. Per capita disposable income in India was estimated at Rs 2.14 lakh in 2023-24, showing consistent year-on-year growth of 8 per cent in FY2024 and a sharp rise of 13.3 per cent in FY2023-10. Adding to this momentum is India's demographic advantage. With a median age of just 28.4 years, almost a decade younger than China's average of 39.6 years, Indian consumers are ambitious, aspirational, and more inclined toward discretionary spending. This young population, combined with the government's push for financial inclusion and overall economic progress, is creating a consumption-driven environment that is highly favourable for FMCG growth. The report noted that this environment has sparked renewed interest among global FMCG giants to strengthen their presence in India. Currently, urban markets contribute around 65% of FMCG sector revenues. However, rural India has also emerged as a strong growth engine and has consistently outpaced urban markets in recent quarters. As income levels rise, consumer awareness deepens, and quick commerce continues to grow, India is positioning itself as the most attractive frontier for long-term FMCG expansion. (ANI)
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