EXICUTIVE SUMMARY

Brooke Bond Red Label: A Short History Brooke Bond Red Label the teas by
Hindustan Unilever are arguably one of the most prominent tea brands in India.
The brand has been synonymous with strong, fragrant tea for decades. So, what
are the key features?
Strong and Aromatic Taste: Red Label is known for its potent flavor, which
could be taken with milk and sugar.
Priced Low: It is marketed as a low-cost brand, enabling it to reach the majority
of consumers.Variation and Availability: Red Label is available in loose tea, tea
bags, and tea dust form, which would suit the needs of consumers at all times.
Powerful Branding:The distinctive red packaging and constant non-
compromising quality has made the brand a strong branded player.
Marketing and Positioning:
Emotional Appeal: Throughout its campaigns, Red Label has appealed using
emotive storytelling, like how tea complements people's lives and brings two
things together in connection with love.
Value for Money: The value-for-money propositions appealed pretty well to the
middle-class Indian marketplace.
Brooke Bond Red Label is one of the main tea brands that are well-known and
appreciated in India. The brand is known for taste, affordability, and availability
of the product. It has been popular over time because of a rich quality, along
with proper marketing strategies.
Business Model Canvas: FMCG Sector
1. Customer Segments
 Mass market consumers
 Retailers (supermarkets, convenience stores, online platforms)
 Wholesalers
2. Value Propositions
 Convenience and ease of use
 Consistent quality
 Affordable pricing
  Brand recognition and trust
 Product variety and innovation
3. Channels
 Retail stores
 E-commerce platforms
 Direct-to-consumer websites
 Wholesalers and distributors
 TV, digital, and print advertising
4. Customer Relationships
 Brand loyalty programs
 Social media engagement
 Customer service hotlines
 Feedback mechanisms
 Personalized marketing campaigns
5. Revenue Streams
 Product sales (primary source)
 Bulk discounts for large orders
 Licensing and franchising (for some brands)
 Co-branding partnerships
6. Key Resources
 Manufacturing facilities
 Distribution networks
 Brand equity
 Research and development capabilities
 Raw material sourcing relationships
7. Key Activities
 Product development and innovation
  Manufacturing and quality control
 Supply chain management
 Marketing and branding
 Sales and distribution
8. Key Partnerships
 Suppliers of raw materials
 Retailers and distributors
 Marketing and advertising agencies
 Logistics and transportation companies
 Technology providers for e-commerce and data analytics
9. Cost Structure
 Raw materials and production costs
 Distribution and logistics
 Marketing and advertising expenses
 Research and development
 Staff salaries and benefits
 Retail space (for company-owned stores)

SECTOR INFORMATION
FMCG stands for Fast-Moving Consumer Goods. This basically refers to a group of
consumer goods that are bought frequently, sold at relatively low prices and sold very fast.
The peculiar features of the FMCG sector are:
High speedy turn-over rate: Products have a life period which is low enough.
Low profit margins: Price at which each item is sold is rather low and profitability happens at
a high volume of sales.
High demand for consumers: These are products that regular consumers buy to meet
everyday needs or desires.
They buy the same often, even daily or weekly.
Short shelf life: Most FMCG products are either perishable or have short use lives.
The market is usually overcrowded by many brands competing in the marketplace, making
practically similar products.

Examples of well-known categories within the FMCG segment:

Food and beverages
Personal care and hygiene products
Household cleaning helps
Over-the-counter medicines
Items for pet care
Stationery and office stationery
Others are consumer electronics, such as batteries
FMCG is different from every other sector since it is characterized with strong branding,
comprehensive network, and wide attention to marketing activities with innovations to hold
out in the market, which is very competitive.
Categories of Sector –
The FMCG (Fast-Moving Consumer Goods) sector encompasses a wide range of products
that consumers use frequently and purchase regularly. Here's a detailed of breakdown of the
main categories:
1. Food and Beverages
o Packaged foods (snacks, cereals, canned goods)
o Dairy products
o Bakery items
o Confectionery
o Frozen foods
o Soft drinks and juices
o Tea and coffee
o Alcoholic beverages
2. Personal Care and Hygiene
o Soap and body wash
o Shampoo and conditioner
o Toothpaste and oral care products
o Deodorants
 o Skincare products
o Cosmetics and makeup
o Feminine hygiene products
o Baby care items (diapers, wipes)
3. Household Cleaning Products
o Laundry detergents and fabric softeners
o Dishwashing liquids and powders
o All-purpose cleaners
o Bathroom and kitchen cleaners
o Air fresheners
o Insecticides
4. Over-the-Counter (OTC) Pharmaceuticals
o Pain relievers
o Cold and flu remedies
o Digestive aids
o First aid supplies
o Vitamins and supplements
5. Pet Care
o Pet food
o Pet treats
o Grooming products
o Pet hygiene products
6. Tobacco Products
o Cigarettes
o Other tobacco items
7. Paper Products
o Toilet paper
o Paper towels
o Tissues
o Disposable diapers
 8. Stationery and Office Supplies
o Pens and pencils
o Notebooks and paper
o Adhesives and tapes
o Basic office supplies
9. Small Consumer Electronics
o Batteries
o Memory cards
o Earphones
o Chargers and cables
10. Apparel and Accessories
o Socks and underwear
o Basic t-shirts
o Affordable jewelry and watches
11. Home Care
o Air fresheners
o Candles
o Pest control products
12. Convenience Foods
o Ready-to-eat meals
o Instant noodles
o Frozen dinners

Sector GDP Contribution - The FMCG sector contributes a significant share of the GDP
in most of the economies. Here is an overview of general contribution:
Overall Contribution: Normally, the FMCG sector is estimated to contribute around 6-8% of
the GDP of a country, though the percentage widely varies with the country and its overall
economic structure.
Sub-Sectors:
Food and Beverages: Generally the largest contributor and plays a highly significant part in
GDP.
Personal Care Products is one of the fast-growing segments wherein it shows the change in
consumer preferences.
Household products are an essential commodity, with steady demand.
Employment: This is an important contribution to employment in the FMCG industry, which
also organizes jobs in manufacturing, distribution, and retailing.
Growth Rates: Growth rates are relatively resilient, often increasing more than the economy
at large, for factors like urbanization, increasing disposable incomes, and changing consumer
behaviors.
Sector CAGR and forecasting -
The FMCG (Fast-Moving Consumer Goods) sector is expected to grow at a steady pace, with
various sub-sectors showing different growth rates. Here’s a general overview of the sector's
CAGR and forecasting:
Overall FMCG Sector
 CAGR: The global FMCG market is projected to grow at a CAGR of around 5-7%
over the next few years, depending on the region and economic conditions.
Key Sub-Sectors
1. Food and Beverages:
o CAGR: Expected growth of about 4-6%.
o Drivers: Health trends, convenience foods, and organic products.
2. Personal Care:
o CAGR: Anticipated growth of 6-8%.
o Drivers: Increased consumer spending on beauty and personal hygiene, as
well as rising awareness of sustainable products.
3. Household Care:
o CAGR: Estimated growth of 5-7%.
o Drivers: Demand for cleaning and hygiene products, especially post-
pandemic.
4. Health and Wellness:
o CAGR: Projected growth of 7-10%.
o Drivers: Rising health awareness and demand for functional foods.
Market Trends Influencing Growth
Increasing online shopping trends are boosting sales in the FMCG sector. Growing
consumer preference for sustainable and eco-friendly products. Higher disposable
 incomes in urban areas are driving FMCG demand. A shift towards healthier options
and clean-label products.
Forecasting
 The FMCG sector is expected to adapt to changing consumer preferences, with a
focus on innovation, sustainability, and digital transformation.
 Companies are likely to invest in technology and supply chain efficiencies to meet
demand and enhance customer experience.

Sector categories wise CAGR - Here’s a breakdown of the Compound Annual Growth
Rate (CAGR) for different categories within the FMCG sector, particularly focusing on tea and
related products like those offered by Brooke Bond:
1. Tea Market
 Black Tea:
o CAGR: Approximately 4-6% over the next few years.
o Drivers: Established consumer base and strong demand in developing markets.
 Green Tea:
o CAGR: Expected to grow at about 7-10%.
o Drivers: Increasing health consciousness and the popularity of wellness
products.
 Herbal Tea:
o CAGR: Anticipated growth of 8-12%.
o Drivers: Rising interest in natural remedies and herbal benefits.
 Instant Tea:
o CAGR: Projected growth of around 5-7%.
o Drivers: Demand for convenience and quick preparation options.
2. Personal Care Products
 CAGR: Expected to grow at around 6-8%.
 Drivers: Increased spending on beauty and hygiene products.
3. Food and Beverages
 CAGR: Projected growth of 4-6%.
 Drivers: Trends towards convenience and ready-to-eat options.
4. Household Care
  CAGR: Estimated growth of 5-7%.
 Drivers: Demand for cleaning and disinfecting products, especially post-pandemic.
5. Health and Wellness Products
 CAGR: Projected growth of 7-10%.
 Drivers: Rising health awareness and a shift towards functional foods.
The FMCG sector overall is expected to show steady growth, with specific sub-sectors like
health-focused products experiencing higher rates due to changing consumer preference.

Consumer Buying Behaviour of the Sector - Consumer buying behavior in the Fast-
Moving Consumer Goods (FMCG) sector is characterized by several key factors:
1. Frequency of Purchase
o High purchase frequency
o Regular, often habitual buying patterns
o Low involvement decision-making for repeat purchases
2. Price Sensitivity
o Generally high price sensitivity
o Willingness to switch brands for better deals
o Attraction to promotions and discounts
3. Brand Loyalty
o Varies by product category and consumer segment
o Can be strong for personal care and food items
o Often influenced by product satisfaction and marketing efforts
4. Convenience
o Strong preference for easily accessible products
o Importance of product availability and store location
o Growing demand for online purchasing options
5. Impulsive Buying
o High incidence of unplanned purchases
o Influenced by in-store promotions and product placement
o Often driven by immediate needs or wants
6. Product Innovation
 o Interest in new product variants and improvements
o Willingness to try new products, especially from trusted brands
o Attraction to products addressing emerging trends (e.g., health, sustainability)
7. Package Size and Design
o Influence of packaging on purchase decisions
o Preference for convenient packaging sizes
o Attraction to visually appealing and informative packaging
8. Quality Perception
o Importance of consistent product quality
o Influence of brand reputation on quality perception
o Impact of product experience on repeat purchases
9. Social and Cultural Factors
o Influence of family and peer recommendations
o Impact of cultural preferences on product choices
o Effect of social trends on consumption patterns
10. Environmental and Ethical Considerations
o Growing interest in eco-friendly and sustainable products
o Increasing awareness of ethical production practices
o Willingness to pay premium for environmentally responsible options
11. Digital Influence
o Impact of online reviews and ratings on purchase decisions
o Influence of social media marketing and influencers
o Use of mobile apps for price comparison and convenient shopping
12. Post-Purchase Behavior
o Importance of product satisfaction for repeat purchases
o Likelihood of brand switching if expectations are not met
o Potential for word-of-mouth recommendations or complaints
Understanding these aspects of consumer behavior is crucial for FMCG companies in
developing effective marketing strategies, product innovations, and maintaining customer
loyalty in a highly competitive market.
Consumer buying behaviour of Categories of Sector –
1. Food and Beverages
 Frequency: Very high, often daily or weekly purchases
 Price Sensitivity: Moderate to high, varies by product type (e.g., higher for staples,
lower for premium snacks)
 Brand Loyalty: Moderate, influenced by taste preferences and habitual consumption
 Impulsive Buying: High, especially for snacks and beverages
 Health Consciousness: Growing influence on choices, particularly in developed
markets
 Seasonal Variations: Significant for certain products (e.g., ice cream, hot beverages)
2. Personal Care and Hygiene
 Frequency: Regular, varies by product (e.g., daily for toothpaste, weekly for
shampoo)
 Price Sensitivity: Moderate, with willingness to pay premium for perceived quality
 Brand Loyalty: High, especially for products in direct contact with skin
 Influence of Reviews: Significant, especially for skincare and cosmetics
 Personalization: Growing demand for products tailored to specific needs
 Ethical Considerations: Increasing interest in cruelty-free and natural products
3. Household Cleaning Products
 Frequency: Regular, often weekly or monthly purchases
 Price Sensitivity: High, with focus on value for money
 Brand Loyalty: Moderate, influenced by efficacy and habit
 Convenience: Strong preference for multi-purpose and easy-to-use products
 Environmental Concerns: Growing interest in eco-friendly and biodegradable options
 Scent Preference: Often a key factor in purchase decisions
4. Over-the-Counter (OTC) Pharmaceuticals
 Frequency: Lower, often purchased as needed
 Price Sensitivity: Low to moderate, with emphasis on efficacy
 Brand Loyalty: High, especially for trusted brands
 Influence of Healthcare Professionals: Significant impact on choices
 Self-diagnosis: Increasing trend, influenced by online information
  Regulatory Impact: Purchasing heavily influenced by local healthcare regulations
5. Pet Care
 Frequency: Regular for food, variable for other products
 Price Sensitivity: Moderate, with willingness to spend on premium products
 Brand Loyalty: High, especially if pets respond well to specific brands
 Emotional Factors: Strong influence, pets often treated as family members
 Health Consciousness: Growing concern for pet health influencing choices
 Online Purchasing: Increasing trend, especially for bulky items like pet food
6. Paper Products
 Frequency: Regular, often weekly or bi-weekly purchases
 Price Sensitivity: High, often seen as commodity products
 Brand Loyalty: Low to moderate, easily swayed by promotions
 Bulk Buying: Common, especially for household paper products
 Environmental Concerns: Growing interest in recycled and sustainable options
 Quality Perception: Significant factor, especially for personal use products
7. Convenience Foods
 Frequency: Variable, higher among urban and younger consumers
 Price Sensitivity: Moderate, balanced with convenience value
 Health Consciousness: Increasing influence, demand for healthier options
 Time Constraints: Major driver for purchase, especially in busy households
 Variety Seeking: High interest in trying new flavors and cuisines
 Packaging: Significant influence, with focus on portability and ease of preparation
8. Small Consumer Electronics
 Frequency: Low, purchased as needed or for replacements
 Price Sensitivity: Moderate, with focus on durability and brand reputation
 Brand Loyalty: Moderate to high, especially for trusted electronics brands
 Technology Trends: Significant influence on purchasing decisions
 Online Research: Extensive before purchase, comparing features and prices
 Warranty and After-sales Service: Important factors in decision making
Understanding these category-specific behaviors is crucial for FMCG companies to tailor
their product development, marketing strategies, and retail approaches effectively.
Sector Growth factor -
1. Population Growth and Urbanization

 Increasing global population, especially in developing markets

 Rapid urbanization leading to changing lifestyles and consumption patterns
 Growing middle class with higher disposable incomes
2. Technology and Digital Transformation
 E-commerce penetration increasing accessibility of FMCG products
 Data analytics enabling better understanding of consumer behavior
 Digital marketing allowing for more targeted and effective promotional strategies
 Innovation in supply chain management and logistics
3. Product Innovation and Diversification
 Development of new products to meet evolving consumer needs
 Expansion of product lines to cater to niche markets
 Focus on healthier, organic, and natural product variants
 Customization and personalization of products
4. Emerging Markets
 Rapid growth in developing economies like India, China, and Southeast Asian
countries
 Increasing consumer awareness and adoption of packaged goods in these markets
 Rising disposable incomes leading to higher spending on FMCG products
5. Changing Consumer Preferences
 Growing health consciousness driving demand for wellness products
 Increasing environmental awareness boosting eco-friendly product sales
 Shift towards premium and luxury FMCG products in mature markets
6. Brand Building and Marketing
 Strong brand loyalty driving repeat purchases
 Effective use of social media and influencer marketing
 Emotional branding strategies creating deeper connections with consumers
7. Mergers and Acquisitions
 Consolidation in the industry leading to economies of scale
  Acquisition of local brands by multinational corporations to enter new markets
 Strategic partnerships to leverage complementary strengths
8. Government Policies and Regulations
 Favorable trade policies opening up new markets
 Regulations promoting local manufacturing in some countries
 Tax incentives for FMCG companies in certain regions
9. Supply Chain Optimization
 Improved distribution networks reaching remote areas
 Adoption of advanced inventory management systems
 Direct-to-consumer models reducing intermediary costs
10. Sustainability Initiatives
 Growing consumer preference for sustainable and ethically produced goods
 Circular economy initiatives reducing waste and improving brand image
 Sustainable packaging innovations
11. Convenience and On-the-Go Products
 Busy lifestyles driving demand for ready-to-eat and convenient packaging
 Growth in single-serve and portable product formats
12. Private Labels
 Increasing acceptance and quality of store brands
 Private labels offering higher margins for retailers and value for consumers
Understanding and leveraging these growth factors is essential for FMCG companies to
maintain competitiveness and drive expansion in this dynamic sector.

Growth/Degrowth pattern of Sector pre & post-pandemic:

Pre-Pandemic (Before 2020)
Growth Patterns:
1. Steady growth in developed markets
2. Rapid expansion in emerging economies
3. Increasing demand for premium and organic products
 4. Growth in e-commerce, but still a small percentage of total sales
5. Rising interest in health and wellness products
6. Gradual shift towards sustainable and eco-friendly options
Challenges:
1. Market saturation in developed economies
2. Intense competition and price pressure
3. Changing consumer preferences towards healthier options
4. Struggle to penetrate rural markets in developing countries
During Pandemic (2020-2021)
Growth Areas:
1. Surge in demand for hygiene and cleaning products
2. Increased sales of packaged food and home cooking ingredients
3. Rapid acceleration of e-commerce adoption
4. Growth in large pack sizes and bulk buying
5. Increased demand for immunity-boosting products
6. Rise in consumption of indulgence items (e.g., snacks, alcohol)
Degrowth Areas:
1. Decline in sales of cosmetics and personal care products
2. Reduced demand for on-the-go and convenience foods
3. Decrease in impulse purchases due to reduced store visits
4. Slowdown in premium and luxury FMCG segments
Post-Pandemic (2022 onwards)
Emerging Growth Patterns:
1. Continued strong e-commerce presence
2. Increased focus on health, wellness, and immunity products
3. Growing demand for sustainable and eco-friendly products
4. Resurgence in beauty and personal care as social activities resume
5. Hybrid shopping behaviors (mix of online and offline)
6. Interest in products supporting mental health and stress relief
Challenges and Potential Degrowth Areas:
 1. Inflationary pressures affecting consumer spending power
2. Supply chain disruptions impacting product availability
3. Shift towards value products in some categories due to economic uncertainty
4. Potential oversupply in categories that saw pandemic-induced spikes
Key Trends Shaping the Post-Pandemic FMCG Landscape:
1. Digitalization across the value chain
2. Emphasis on health, hygiene, and wellness
3. Sustainability as a core business strategy
4. Direct-to-consumer (D2C) models gaining traction
5. Localization of supply chains
6. Increased investment in data analytics and AI
7. Focus on building resilient and agile business models
The FMCG sector has demonstrated its resilience during the pandemic, with varying growth
patterns across different product categories. The post-pandemic landscape presents both
opportunities and challenges, requiring companies to adapt to evolving consumer behaviors
and market dynamics.

Growth/Degrowth pattern Categories of Sector pre & post-pandemic –

1. Food and Beverages

Pre-Pandemic:
 Steady growth, particularly in emerging markets
 Increasing demand for organic and natural products
 Growth in premium and gourmet segments
During Pandemic:
 Surge in staple foods, baking ingredients, and comfort foods
 Growth in large pack sizes and bulk buying
 Decline in on-the-go and single-serve items
Post-Pandemic:
 Continued interest in health-focused foods
 Resurgence of convenience foods as routines normalize
  Sustained growth in home cooking and baking segments
2. Personal Care and Hygiene
Pre-Pandemic:
 Strong growth, especially in emerging markets
 Increasing demand for natural and organic products
 Growth in men's grooming segment
During Pandemic:
 Explosive growth in hand sanitizers, soaps, and disinfectants
 Decline in color cosmetics and fragrances
 Surge in DIY beauty and haircare products
Post-Pandemic:
 Sustained higher demand for hygiene products
 Resurgence in color cosmetics and fragrances
 Continued growth in natural and organic segments
3. Household Cleaning Products
Pre-Pandemic:
 Moderate growth, driven by emerging markets
 Increasing interest in eco-friendly products
During Pandemic:
 Substantial growth across all cleaning categories
 Surge in disinfectant wipes and sprays
Post-Pandemic:
 Sustained higher demand compared to pre-pandemic levels
 Growing interest in sustainable and natural cleaning products
4. Over-the-Counter (OTC) Pharmaceuticals
Pre-Pandemic:
 Steady growth, driven by aging populations and self-care trends
During Pandemic:
 Spike in demand for immunity-boosting supplements
 Increased sales of pain relievers and fever reducers
Post-Pandemic:
 Continued strong interest in preventive healthcare products
 Growth in mental health-related OTC products
5. Pet Care
Pre-Pandemic:
 Strong growth, especially in premium segments
During Pandemic:
 Accelerated growth due to increased pet adoption
 Shift towards larger pack sizes
Post-Pandemic:
 Sustained growth as pet ownership remains high
 Increased focus on pet health and wellness products
6. Convenience Foods
Pre-Pandemic:
 Steady growth, especially in busy urban areas
During Pandemic:
 Initial surge followed by decline as home cooking increased
 Growth in meal kits and semi-prepared foods
Post-Pandemic:
 Gradual return to growth as out-of-home activities resume
 Increased demand for healthier convenience food options
7. Beverages
Pre-Pandemic:
 Growth in functional and health-oriented beverages
During Pandemic:
 Decline in on-the-go and impulse purchase drinks
 Growth in bulk purchases of water and other essentials
Post-Pandemic:
 Resurgence of on-the-go beverages
 Continued growth in functional and health-focused drinks
8. Home Care
Pre-Pandemic:
 Moderate growth, with increasing focus on fragrances
During Pandemic:
 Strong growth across all categories, especially disinfectants
 Increased demand for multi-purpose cleaning products
Post-Pandemic:
 Sustained higher demand compared to pre-pandemic levels
 Growing interest in eco-friendly and natural home care products
These patterns highlight the diverse impacts of the pandemic across FMCG categories and
the ongoing shifts in consumer behavior shaping the post-pandemic landscape.
Growth/Degrowth pattern Categories of Sector pre & post-pandemic -
1. Food and Beverages
Pre-Pandemic:
 Steady growth, particularly in emerging markets
 Increasing demand for organic and natural products
 Growth in premium and gourmet segments
During Pandemic:
 Surge in staple foods, baking ingredients, and comfort foods
 Growth in large pack sizes and bulk buying
 Decline in on-the-go and single-serve items
Post-Pandemic:
 Continued interest in health-focused foods
 Resurgence of convenience foods as routines normalize
 Sustained growth in home cooking and baking segments
2. Personal Care and Hygiene
Pre-Pandemic:
 Strong growth, especially in emerging markets
 Increasing demand for natural and organic products
 Growth in men's grooming segment
During Pandemic:
  Explosive growth in hand sanitizers, soaps, and disinfectants
 Decline in color cosmetics and fragrances
 Surge in DIY beauty and haircare products
Post-Pandemic:
 Sustained higher demand for hygiene products
 Resurgence in color cosmetics and fragrances
 Continued growth in natural and organic segments
3. Household Cleaning Products
Pre-Pandemic:
 Moderate growth, driven by emerging markets
 Increasing interest in eco-friendly products
During Pandemic:
 Substantial growth across all cleaning categories
 Surge in disinfectant wipes and sprays
Post-Pandemic:
 Sustained higher demand compared to pre-pandemic levels
 Growing interest in sustainable and natural cleaning products
4. Over-the-Counter (OTC) Pharmaceuticals
Pre-Pandemic:
 Steady growth, driven by aging populations and self-care trends
During Pandemic:
 Spike in demand for immunity-boosting supplements
 Increased sales of pain relievers and fever reducers
Post-Pandemic:
 Continued strong interest in preventive healthcare products
 Growth in mental health-related OTC products
5. Pet Care
Pre-Pandemic:
 Strong growth, especially in premium segments
During Pandemic:
  Accelerated growth due to increased pet adoption
 Shift towards larger pack sizes
Post-Pandemic:
 Sustained growth as pet ownership remains high
 Increased focus on pet health and wellness products
6. Convenience Foods
Pre-Pandemic:
 Steady growth, especially in busy urban areas
During Pandemic:
 Initial surge followed by decline as home cooking increased
 Growth in meal kits and semi-prepared foods
Post-Pandemic:
 Gradual return to growth as out-of-home activities resume
 Increased demand for healthier convenience food options
7. Beverages
Pre-Pandemic:
 Growth in functional and health-oriented beverages
During Pandemic:
 Decline in on-the-go and impulse purchase drinks
 Growth in bulk purchases of water and other essentials
Post-Pandemic:
 Resurgence of on-the-go beverages
 Continued growth in functional and health-focused drinks
8. Home Care
Pre-Pandemic:
 Moderate growth, with increasing focus on fragrances
During Pandemic:
 Strong growth across all categories, especially disinfectants
 Increased demand for multi-purpose cleaning products
Post-Pandemic:
Sustained higher demand compared to pre-pandemic levels.Growing interest in eco-friendly
and natural home care products.These patterns highlight the diverse impacts of the pandemic
across FMCG categories and the ongoing shifts in consumer behavior shaping the post-
pandemic landscape.
Top 3 players in the sector
Company-wise Market Share – Revenue & CAGR –

1. Nestlé S.A.
 Headquarters: Vevey, Switzerland
 Key Product Categories: Beverages, Dairy, Prepared dishes and cooking aids,
Nutrition and Health Science, Pet Care
 Global Market Share: Approximately 2.1% of the global FMCG market
 Revenue (2023): CHF 94.4 billion (≈ USD 105 billion)
 CAGR (2019-2023): 3.5%
Notable brands: Nescafé, KitKat, Maggi, Purina, Gerber
2. Procter & Gamble Co. (P&G)
 Headquarters: Cincinnati, Ohio, USA
 Key Product Categories: Fabric & Home Care, Baby, Feminine & Family
Care, Beauty, Health Care, Grooming
 Global Market Share: Approximately 1.8% of the global FMCG market
 Revenue (Fiscal Year 2023): USD 82.0 billion
 CAGR (2019-2023): 5.1%
Notable brands: Tide, Pampers, Gillette, Pantene, Oral-B
3. Unilever PLC
 Headquarters: London, United Kingdom
 Key Product Categories: Beauty & Personal Care, Foods & Refreshment,
Home Care
 Global Market Share: Approximately 1.6% of the global FMCG market
 Revenue (2023): EUR 59.6 billion (≈ USD 65 billion)
 CAGR (2019-2023): 2.8%
Notable brands: Dove, Knorr, Lipton, Axe, Hellmann's
Market Share Comparison (2023 estimates)
1. Nestlé: 2.1%
2. P&G: 1.8%
3. Unilever: 1.6%
Revenue Comparison (2023, in USD billions)
1. Nestlé: 105
2. P&G: 82
3. Unilever: 65
CAGR Comparison (2019-2023)
1. P&G: 5.1%
2. Nestlé: 3.5%
3. Unilever: 2.8%
Note: Market share percentages are approximate and can vary based on the specific
market definition and data source. The global FMCG market is highly fragmented,
with even the largest players holding relatively small individual shares of the total
market.
Top 3 players category wise
Company-wise Market Share – Revenue & CAGR
1. Food and Beverages
a) Packaged Foods
1. Nestlé S.A.
o Market Share: ~4.3% (global)
o Revenue (2023): ~$78 billion (food segment)
o CAGR (2019-2023): 3.2%
2. PepsiCo, Inc.
o Market Share: ~3.1% (global)
o Revenue (2023): $91.5 billion (includes beverages)
o CAGR (2019-2023): 5.4%
3. The Kraft Heinz Company
o Market Share: ~2.1% (global)
 o Revenue (2023): $26.6 billion
o CAGR (2019-2023): 0.8%
b) Beverages
1. The Coca-Cola Company
o Market Share: ~43% (global non-alcoholic ready-to-drink beverages)
o Revenue (2023): $45.8 billion
o CAGR (2019-2023): 5.2%
2. PepsiCo, Inc.
o Market Share: ~31% (global non-alcoholic ready-to-drink beverages)
o Revenue (2023): $91.5 billion (includes food)
o CAGR (2019-2023): 5.4%
3. Keurig Dr Pepper Inc.
o Market Share: ~13% (North America beverages)
o Revenue (2023): $14.8 billion
o CAGR (2019-2023): 8.1%
2. Personal Care and Beauty
1. L'Oréal S.A.
o Market Share: ~13% (global beauty and personal care)
o Revenue (2023): €41.18 billion
o CAGR (2019-2023): 8.3%
2. Unilever PLC
o Market Share: ~8% (global beauty and personal care)
o Revenue (2023): €26.3 billion (beauty & personal care segment)
o CAGR (2019-2023): 2.1%
3. Procter & Gamble Co.
o Market Share: ~7% (global beauty and personal care)
o Revenue (2023): $28.6 billion (beauty segment)
o CAGR (2019-2023): 4.7%
3. Home Care and Cleaning Products
1. Procter & Gamble Co.
 o Market Share: ~20% (global home care)
o Revenue (2023): $28.2 billion (fabric & home care segment)
o CAGR (2019-2023): 6.2%
2. Unilever PLC
o Market Share: ~14% (global home care)
o Revenue (2023): €12.2 billion (home care segment)
o CAGR (2019-2023): 4.5%
3. Reckitt Benckiser Group plc
o Market Share: ~12% (global home care)
o Revenue (2023): £6.0 billion (hygiene segment)
o CAGR (2019-2023): 3.8%
4. Pet Care
1. Mars, Incorporated
o Market Share: ~31% (global pet food)
o Revenue (2023): ~$20 billion (pet care segment, estimated)
o CAGR (2019-2023): Data not publicly available
2. Nestlé S.A. (Purina)
o Market Share: ~24% (global pet food)
o Revenue (2023): CHF 17.9 billion (pet care segment)
o CAGR (2019-2023): 7.8%
3. J.M. Smucker Company
o Market Share: ~12% (US pet food)
o Revenue (2023): $2.9 billion (pet food segment)
o CAGR (2019-2023): 3.2%
Note: Market share percentages and financial data are approximate and based on the most
recent available information as of April 2024. CAGR calculations are based on reported
annual revenues and may not account for currency fluctuations or significant one-time events.

Porter's Five Forces Analysis of the FMCG Sector

1. Threat of New Entrants: Moderate to Low
  High capital requirements for manufacturing, distribution, and marketing
 Economies of scale benefit established players
 Strong brand loyalty to existing products
 Extensive distribution networks of incumbent firms
 Regulatory compliance costs and complexities
Key Factors:
 High initial investment
 Importance of brand recognition
 Complex supply chain and distribution requirements
2. Bargaining Power of Suppliers: Moderate
 Many suppliers for raw materials, packaging, etc.
 Some key ingredients might have limited suppliers
 Large FMCG companies often have significant buying power
 Potential for backward integration by large FMCG firms
Key Factors:
 Diversity of suppliers
 Volume of purchases by large FMCG companies
 Importance of certain unique ingredients or materials
3. Bargaining Power of Buyers: High
 Consumers have many choices and can easily switch brands
 Retailers (especially large chains) have significant bargaining power
 Price sensitivity of consumers, especially for non-differentiated products
 Increasing power of e-commerce platforms
Key Factors:
 Low switching costs for consumers
 Concentrated retail sector
 Price competition among brands
4. Threat of Substitute Products: Moderate to High
 Many alternative products within each FMCG category
 Growing trend towards healthier, organic, and eco-friendly alternatives
  Potential for disruptive innovations (e.g., plant-based alternatives in food)
 Home-made alternatives for some products
Key Factors:
 Variety of options within categories
 Changing consumer preferences
 Innovation in alternative products
5. Rivalry Among Existing Competitors: High
 Many players in most FMCG categories
 Intense competition for shelf space and consumer attention
 Frequent promotional activities and price wars
 Constant pressure for product innovation and differentiation
 High fixed costs leading to pressure for volume sales
Key Factors:
 Number of competitors
 Low differentiation in some product categories
 High marketing and advertising expenses
 Pressure for continuous innovation
Overall Industry Attractiveness: Medium
The FMCG sector remains attractive due to stable demand and growth opportunities,
particularly in the emerging markets. However, there is the presence of very powerful
competitive pressures and buying influences. Success in the industry usually requires strong
branding, efficient operations, continuous innovation, and the ability to adapt to changing
consumer preferences.

PESTLE Analysis

Political and economic factors can significantly influence a business's operations,

profitability, and overall success. Here's a breakdown of some key areas to consider:
Government Policy
 Regulatory Environment: The level of government regulation can impact business
costs, operations, and innovation.
  Tax Policy: Tax rates, incentives, and regulations can affect a company's profitability
and investment decisions.
 Trade Policy: Tariffs, quotas, and trade agreements can influence market access,
costs, and competition.
 Industrial Policy: Government initiatives to promote specific industries or sectors
can create opportunities or challenges.
Political Stability
 Political Risk: Political instability, such as coups, civil unrest, or changes in
leadership, can create uncertainty and disrupt business operations.
 Corruption: Corruption can increase costs, hinder efficiency, and erode investor
confidence.
Labour Law
 Employment Regulations: Laws governing employment contracts, wages, working
hours, and labor unions can impact a company's labor costs and workforce
management.
 Labor Relations: The relationship between employers and employees, as well as the
strength of labor unions, can influence workplace dynamics and productivity.
Environmental Law
 Environmental Regulations: Laws and standards related to pollution, waste
management, and resource conservation can impose costs on businesses and require
changes in operations.
 Sustainability: Increasing consumer and investor demand for sustainable practices
can influence business strategies and product development.
Trade Restrictions
 Protectionism: Tariffs, quotas, and other trade barriers can limit market access,
increase costs, and reduce competition.
 Free Trade Agreements: Agreements that reduce trade barriers can create new
opportunities for businesses and expand markets.
It's important for businesses to monitor and adapt to changes in these political and
economic factors. By understanding the potential risks and opportunities, companies can
make informed decisions and develop strategies to mitigate challenges and capitalize on
favorable conditions.

Economic Factors Affecting Business

Economic factors play a crucial role in shaping the business environment. Here's a
breakdown of key economic indicators to consider:
Economic Growth
 GDP: Gross Domestic Product measures the total value of goods and services
produced in an economy. A growing GDP generally indicates increased economic
activity, which can lead to higher demand for products and services.
 Consumer Spending: Economic growth is often driven by consumer spending,
which can impact demand for various goods and services.
Disposable Income of Consumers
 Purchasing Power: The disposable income of consumers represents their spending
power. Higher disposable income can lead to increased demand for products and
services.
 Income Inequality: The distribution of income among consumers can affect market
demand for different products and services.
Interest Rates
 Borrowing Costs: Interest rates influence the cost of borrowing for businesses and
consumers. Lower interest rates can encourage investment and spending, while higher
rates can discourage borrowing and slow economic activity.
 Investment Decisions: Interest rates can affect businesses' investment decisions, such
as whether to expand operations or invest in new projects.
Exchange Rates
 Import/Export Costs: Exchange rates impact the cost of imports and exports. A
weaker domestic currency can make exports more competitive but increase the cost of
imports.
 Global Trade: Exchange rate fluctuations can affect global trade flows and the
competitiveness of businesses operating in international markets.
Inflation
 Purchasing Power: Inflation erodes the purchasing power of consumers, reducing
their ability to buy goods and services.
 Business Costs: Inflation can increase the cost of doing business, such as raw
materials, wages, and energy.
 Interest Rates: Central banks often raise interest rates to combat inflation, which can
affect borrowing costs and economic activity.
By understanding these economic factors and their potential impacts, businesses can make
more informed decisions about their operations, investments, and pricing strategies.
Social - Population Growth, Age Distribution, Health Consciousness

Social Factors Affecting Business

Social factors can significantly influence consumer behavior, market trends, and business
operations. Here are some key social factors to consider:
Population Growth
 Market Size: Population growth can increase the size of potential markets for
businesses.
 Demographic Shifts: Changes in population demographics, such as aging populations
or urbanization, can impact consumer preferences and demand for products and
services.
Age Distribution
 Consumer Preferences: Different age groups have varying preferences, needs, and
buying behaviors.
 Market Segmentation: Businesses can tailor their products and marketing strategies to
target specific age groups.
Health Consciousness
 Consumer Trends: Increasing health consciousness among consumers has led to a
growing demand for healthier products and services.
 Product Development: Businesses need to adapt their product offerings to meet the
changing needs and preferences of health-conscious consumers.
Other social factors that can influence business include:
 Cultural Factors: Cultural norms, values, and beliefs can shape consumer behavior
and preferences.
 Lifestyle Trends: Changing lifestyles, such as increased urbanization or the rise of
digital technology, can impact consumer habits and spending patterns.
 Social Media: Social media platforms can influence consumer opinions, brand
perception, and purchasing decisions.
By understanding these social factors, businesses can better anticipate market trends, develop
relevant products and services, and effectively target their target audience.
Technology - Upgradation of Technology, Research and development Change in
technology
Technological advancements are driving rapid changes in various industries and businesses.
Here are some key technological factors to consider:
Upgradation of Technology
 Efficiency and Productivity: Upgrading technology can improve efficiency, reduce
costs, and enhance productivity.
 Innovation: New technologies can enable businesses to develop innovative products
and services.
Research and Development
 Product Development: Research and development (R&D) can lead to the creation of
new products and services.
 Competitive Advantage: Investing in R&D can give businesses a competitive edge by
differentiating their offerings.
Change in Technology
 Disruption: Technological advancements can disrupt existing industries and business
models.
 Adaptability: Businesses need to be adaptable to keep up with technological changes
and avoid becoming obsolete.
Some specific technological factors that are impacting businesses today include:
 Digital Transformation: The shift towards digital technologies is transforming how
businesses operate, from customer interactions to supply chain management.
 Artificial Intelligence (AI): AI is being used to automate tasks, improve decision-
making, and enhance customer experiences.
 Internet of Things (IoT): IoT devices are connecting physical objects to the internet,
enabling new applications and data collection.
 Cybersecurity: The increasing reliance on technology has made cybersecurity a
critical concern for businesses.
By understanding these technological factors and investing in technological advancements,
businesses can stay competitive, improve their operations, and capitalize on new
opportunities

Environmental - Eco-Friendly, Business Ethics

Environmental factors are becoming increasingly important considerations for businesses,
as consumers, investors, and regulators are placing a higher emphasis on sustainability and
ethical practices. Here are some key environmental factors to consider:
Eco-Friendly Practices
 Sustainability: Businesses are expected to adopt sustainable practices that minimize
their environmental impact.
 Consumer Demand: Consumers are increasingly seeking products and services that
are environmentally friendly.
 Regulatory Compliance: Businesses must comply with environmental regulations
and standards.
Business Ethics
 Corporate Social Responsibility (CSR): Businesses are expected to contribute
positively to society and the environment.
 Ethical Sourcing: Businesses must ensure that their supply chains are ethical and
sustainable.
 Transparency: Businesses are expected to be transparent about their environmental
practices and social impact.
Some specific environmental factors that are influencing businesses today include:
 Climate Change: Businesses are facing increasing pressure to reduce their carbon
footprint and mitigate the impacts of climate change.
 Resource Scarcity: The depletion of natural resources, such as water and minerals, is
posing challenges for businesses.
 Waste Management: Businesses are expected to adopt responsible waste
management practices and reduce their waste output.
 Pollution: Businesses must comply with regulations and standards related to air,
water, and soil pollution.
By addressing these environmental factors, businesses can improve their reputation, enhance
their brand image, and contribute to a more sustainable future.

Legal - Health and safety, Advertisement standard, Product labelling, Product

Safety, Consumer rights and laws.
Legal factors play a crucial role in shaping the business environment and ensuring
compliance with regulations and consumer protection laws. Here are some key legal factors
to consider:
Health and Safety
 Workplace Safety: Businesses must comply with health and safety regulations to
protect their employees and prevent accidents.
 Product Safety: Products must meet safety standards to avoid causing harm to
consumers.
Advertisement Standards
 Truthful and Honest Advertising: Advertisements must be truthful, honest, and not
misleading.
 Consumer Protection: Advertising laws protect consumers from false or deceptive
claims.
Product Labeling
 Accurate Labeling: Products must be labeled accurately to provide consumers with
essential information.
 Consumer Information: Labeling requirements vary by jurisdiction but typically
include ingredients, nutritional information, and warnings.
Product Safety
 Quality Control: Businesses must implement quality control measures to ensure that
their products meet safety standards.
 Product Recalls: If a product is found to be unsafe, businesses may be required to
recall it.
Consumer Rights and Laws
 Consumer Protection Laws: These laws protect consumers from unfair or deceptive
business practices.
 Consumer Rights: Consumers have the right to safe, quality products, fair treatment,
and information.
Some specific legal factors that are influencing businesses today include:
 Data Privacy: Businesses must comply with data privacy laws, such as GDPR
(General Data Protection Regulation) and CCPA (California Consumer Privacy Act).
 Intellectual Property: Businesses need to protect their intellectual property, such as
patents, trademarks, and copyrights.
 Competition Law: Antitrust laws prevent businesses from engaging in anti-
competitive practices.
By understanding and complying with these legal factors, businesses can avoid legal issues,
protect their reputation, and operate ethically.

SWOT Analysis of Sector -

FMCG (Fast-Moving Consumer Goods) is a dynamic and competitive sector that plays a vital
role in economies worldwide. Here's a SWOT analysis of the FMCG sector:
Strengths
 Essential Products: FMCG products are essential for daily life, ensuring a consistent
demand.
 Large Market Size: The FMCG sector caters to a vast consumer base, providing
ample market opportunities.
 Brand Loyalty: Many FMCG brands have strong brand loyalty and recognition.
 Supply Chain Efficiency: The sector has developed efficient supply chains to reach
consumers globally.
 Innovation: FMCG companies often invest in research and development to introduce
new products and stay ahead of competition.
Weaknesses
 Price Sensitivity: Consumers are often price-sensitive, especially during economic
downturns.
 Short Product Life Cycles: FMCG products have relatively short lifespans due to
rapid technological advancements and changing consumer preferences.
 Competition: The sector is highly competitive, with numerous players vying for
market share.
 Regulatory Challenges: FMCG companies face various regulatory challenges, such as
labeling requirements, food safety standards, and environmental regulations.
Opportunities
 Emerging Markets: Growing economies and rising disposable incomes in emerging
markets present significant opportunities for FMCG companies.
 E-commerce Growth: The increasing adoption of e-commerce can provide new
channels for FMCG sales.
 Health and Wellness Trends: Consumers are becoming more health-conscious,
creating opportunities for FMCG companies to offer healthier products.
 Customization: The rise of personalization and customization can allow FMCG
companies to cater to specific consumer preferences.
  Sustainable Practices: Consumers and investors are increasingly demanding
sustainable and ethical practices, creating opportunities for FMCG companies to
differentiate themselves.
Threats
 Economic Downturns: Economic recessions can lead to reduced consumer spending
and impact demand for FMCG products.
 Changing Consumer Preferences: Rapidly changing consumer preferences can make
it difficult for FMCG companies to keep up.
 Competitive Pressure: Intense competition from both established players and new
entrants can erode market share and profitability.
 Regulatory Challenges: Stricter regulations and enforcement can increase costs and
compliance burdens.
 Technological Disruption: New technologies, such as artificial intelligence and
blockchain, can disrupt the FMCG industry.
By understanding these strengths, weaknesses, opportunities, and threats, FMCG companies
can develop effective strategies to navigate the competitive landscape and capitalize on
growth opportunities.

Company Information