The fast-moving consumer goods (FMCG) sector is the fourth largest sector in the country. It includes household and personal care, health care and food items, with household and personal care accounting for more than 50% of the total FMCG sales.
The sector has advanced well in the past and should continue to grow at a brisk pace. The size of the FMCG sector should double to US$ 220 billion by 2025, from the current levels of US$ 110 billion in 2020 (5-Yr CAGR of 14.9%). With easier access, rising disposal income and increased awareness this number seem viable.
A good time to invest in the sector is during an economic downturn as the FMCG stocks play the role of defensive stocks in a portfolio. Considering there is a constant demand for these products, defensive stocks tend to be more stable during all phases of a business cycle.
You can either find them on the BSE and NSE websites or access an exhaustive list of the top FMCG Stocks in India on Equitymaster.
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