New Delhi– India’s market for fast moving consumer goods (FMCG) is expected to more than double to $104 billion by 2020 from the present level of $49 billion, a research report said on Wednesday.

According to the Assocham-TechSci Research report, steady economic growth, rising share of organised retail, improving awareness, and a favourable demographic dividend will give a boost to the industry’s growth.

The sector is expected to grow at a compounded annual growth rate (CAGR) of 20.6 per cent, the report said.

“It is certainly good news for giving a much-needed consumption boost to the economy,” said Assocham Secretary General D.S. Rawat.

The study titled “Indian FMCG Market 2020” elaborated that measures such as Goods and Services Tax Bill, Food Security Bill and increased limit of foreign direct investment will have a positive impact on the FMCG industry.

Currently, FMCG is the fourth largest sector in the Indian economy and provides employment to around three million people accounting for approximately five per cent of the total factory employment in the country.

However, India only accounts for a share of just 0.68 per cent of the global FMCG market.

Nevertheless, globally FMCG sector is expected to grow at CAGR of 4.4 per cent, which when compared to India is a lot slower.

“Many foreign FMCG multinationals have established themselves in India,” the report said.

“Globally, the FMCG companies have now shifted their focus on e-commerce due to the increasing mobile internet penetration.”

However, the share of online sales of FMCG products globally accounted for around five per cent in 2015, which is relatively higher than India where online FMCG sales accounted for a share of just 1-2 per cent of the overall FMCG market in 2015, the report said. (IANS)