FMCG is the acronym of Fast Moving Consumer Goods which is also known as Consumer Packaged Goods (CPG). Fast moving consumer goods are products that have a quick turnover, and relatively low cost. FMCG generally include a wide range of often purchased consumer products such as toiletries, soap, cosmetics, teeth cleaning products, shaving products and detergents, as well as other non-durables such as glassware, bulbs, condoms, batteries, paper products and plastic goods. The purchasers usually put less thought into the purchase of FMCG than they do for other durable products such as electronic items. In comparison with other industries such as automobiles, computers, and airlines, FMCG business has a steady rate of growth, for it does not suffer from huge recession and layoffs every time the economy starts to dip. In FMCG business absolute profit made on the products is relatively small. Since they generally sell in large numbers, the overall profit on such products can be huge.

FMCG Products and Categories
- Personal Care, Oral Care, Hair Care, Skin Care, Personal Wash (soaps);
- Cosmetics and toiletries, deodorants, perfumes, feminine hygiene, paper products;
- Household care fabric wash including laundry soaps and synthetic detergents; household cleaners, such as dish/utensil cleaners, floor cleaners, toilet cleaners, air fresheners, insecticides and mosquito repellents, metal polish and furniture polish;

FMCG in 2006
The performance of the industry was inconsistent in terms of sales and growth for over 4 years. The investors in the sector were not gainers at par with other booming sectors. After two years of sinking performance of FMCG sector, the year 2005 has witnessed the FMCGs demand growing. Strong growth was seen across various segments in FY06. With the rise in disposable income and the economy in good health, the urban consumers continued with their shopping spree.

- Food and health beverages, branded flour, branded sugarcane, bakery products such as bread, biscuits, etc., milk and dairy products, beverages such as tea, coffee, juices, bottled water etc, snack food, chocolates, etc.
- Frequently replaced electronic products, such as audio equipments, digital cameras, Laptops, CTVs; other electronic items such as Refrigerator, washing machines, etc. coming under the category of White Goods in FMCG;
Sector Outlook
FMCG is the fourth largest sector in the Indian Economy with a total market size of Rs. 60,000 crores. FMCG sector generates 5% of total factory employment in the country and is creating employment for three million people, especially in small towns and rural India.
Analysis of FMCG Sector
Strengths:
1. Low operational costs
2. Presence of established distribution networks in both urban and rural areas
3. Presence of well-known brands in FMCG sector
Weaknesses:
1. Lower scope of investing in technology and achieving economies of scale, especially in small sectors
2. Low exports levels
3. "Me-too" products, which illegally mimic the labels of the established brands. These products narrow the scope of FMCG products in rural and semi-urban market.
Opportunities:
1. Untapped rural market
2. Rising income levels, i.e. increase in purchasing power of consumers
3. Large domestic market- a population of over one billion.
4. Export potential
5. High consumer goods spending
Threats:
1. Removal of import restrictions resulting in replacing of domestic brands
2. Slowdown in rural demand
Tax and regulatory structure