Chirag Paswan the Union Minister of Food Processing Industries emphasised the role of fast-moving consumer goods (FMCG) in driving India toward its goal of ‘Viksit Bharat’ (Developed India) at the 13th edition of ‘FICCI MASSMERIZE 2024’ held on 7-8 October, 2024 — while also releasing a Deloitte-FICCI report titled ‘SPURring growth in FMCG, retail and e-commerce sectors in India,’ at the event.

The minister emphasised the importance of product quality across all sectors, noting that the reputation of individual companies directly impacts India’s global brand identity. He announced that the government is working on establishing Indian standards that can gain international acceptance.

Paswan further highlighted the government’s commitment to minimising food wastage through value addition. He announced plans to set up 50 multi-purpose food irradiation units and 100 food testing labs to enhance food safety and quality.

During the event, Nidhi Khare, Secretary of the Department of Consumer Affairs, discussed the government’s efforts to improve consumer experience through effective grievance redressal mechanism. She highlighted a doubling of registered complaints, indicating increased consumer confidence in the national grievance mechanism.

India’s FMCG market is expected to become the world’s third-largest consumer market by 2030, driven by rising demand and innovative product offerings.

The retail sector is projected to grow at a CAGR of 9.1% until FY27, while the e-commerce market is expected to reach USD 325 billion by 2030, growing at an impressive 21% CAGR.

Factors such as increased smartphone penetration and the rise of quick commerce are reshaping consumer behaviour and driving growth across these sectors.

Some key findings of the Deloitte-FICCI report  include:

1)Out 37% of consumers favor quick commerce over traditional e-commerce for food and beverages
2)About 78% of consumers are willing to pay a premium for healthy food and beverages.
3)Indian retailers are increasingly launching their own private label products, typically priced 25 – 40% lower than comparable branded items.

Compiled by Bhavya Misra