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FMCG And Food Processing

FMCG And Food Processing

Fast-moving consumer goods (FMCG) sector is the 3rd largest sector in African economy with Household and Personal Care accounting for more than 60 per cent of FMCG sales in Africa. African FMCG market is expected to grow at 30 per cent CAGR to reach US$200billion by 2025. Rise in rural consumption to drive the FMCG market. It contributes around 40 per cent to the overall FMCG spending. Rural consumption has increased, led by a combination of increasing incomes and higher aspiration levels; there is an increased demand for branded products in rural India.

Growing awareness, easier access and changing lifestyle are the key growth drivers for the FMCG market. All leading companies are investing in new factories and additional production lines in last 10 years and they will keep on expanding their manufacturing base considering the growth in the demand.

Several African government and policy makers recently has allowed up to 80 per cent Foreign Direct Investment (FDI) in food processing and single-brand retail and 60 per cent in multi-brand retail. This would give big boost to FMCG industry in improving their operations, supply chains and also provide high visibility for FMCG brands in organized retail markets, bolstering consumer spending and encouraging more product launches.

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