Everything You Need To Know About Consumer Goods Sector Stocks In India

India is among the largest markets for consumer goods globally. According to a World Economic Forum report, it is poised to be the third largest consumer market in the world, following the US and China.

The future looks promising for the sector however the COVID-19 pandemic has interrupted the growth spike. 2020 has not been great for the consumer goods industry in India. 

Despite the interruptions, the industry is back to a trajectory of steady growth. In this blog, we go through different kinds of goods that fall in the consumer goods industry, top sector stocks, and how to choose the best stocks to invest in. You can consult a Cube Wealth Coach or download the Cube Wealth App.

Important: This blog is meant to educate readers and the information furnished here is not to be construed as investment advice from Cube Wealth. Please consult a wealth coach or financial advisor before investing in any asset.

What Is The Consumer Goods Sector?

Consumer goods refer to products that are bought and used by the final consumers or individuals. These products are sold directly to the consumers and are not used to manufacture other goods. 

Some everyday examples of consumer goods are:

• Food
• Beverages
• Cosmetics
• Household Appliances
• Electronic Appliances
  

Broadly, consumer goods are categorised into durable and non-durable items.

Consumer Durables

Also known as slow moving goods, consumer durables are products that typically last more than a year. Furniture, home improvement, and electronic appliances are a few examples of consumer durables.

Some of the leading brands dealing in consumer durable goods are:

• Havells
• Bajaj
• Crompton Greaves
  

Fast Moving Consumer Goods

Non-durable consumer goods are popularly referred to as FMCGs. They include everyday consumption items like food, beverages, toiletries, apparels, footwear, etc.

Some of the leading brands dealing in consumer durable goods are:

• Amul
• Marico
• Dabur
  

To get a comprehensive view of the consumer goods sector in India, let’s look at both consumer durables as well as the FMCG sectors.

Read this blog to know more about the US consumer goods sector

Top Popular Consumer Goods Sector Stocks In India

Some Of The Best Consumer Durables Sector Stocks in India

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Some Of The Best FMCG Sector Stocks in India

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Important Note: All facts & figures mentioned in the tables above have been collated from publicly available sources. The companies mentioned in the tables are listed in no particular order and are a reflection of India’s most popular ecommerce sector brands at the moment. Cube Wealth does not recommend purchasing stocks based on popularity alone and suggest you consult a Wealth Coach before putting your hard-earned money into any asset.

Indian Consumer Goods Sector Facts At A Glance

1. Fast moving consumer goods (FMCG) is the 4th largest sector in the Indian economy.

2. Even though online shopping is an emerging trend, it accounts for 4.9% of the FMCG market.

3. ITC, Hindustan Unilever, Amul, Nestle, Marico, Britannia Industries, Procter & Gamble are among the biggest names in the Indian FMCG sector.

4. By 2025, the home appliances & consumer electronics industry, minus mobile handsets, is estimated to touch a Rs 1.5 lakh crore revenue.

5. Sony, Samsung, Whirlpool, LG, Bluestar, Havells, Bajaj, are some of the key players of the Indian consumer durables sector.

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Past Trajectory Of Investment Returns In The Indian Consumer Goods Sector

Growth Of The Consumer Durables Sector In India, 2015 -2020

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Growth Of The FMCG Sector In India, 2015 -2020

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FAQs 

1. Why are consumer goods sector stocks significant in India's stock market?

Ans. Consumer goods sector stocks are significant because they are closely tied to the country's domestic consumption, which is a key driver of economic growth in India. These stocks are often considered more stable due to consistent demand. You can consult a Cube Wealth Coach or download the Cube Wealth App.

2. Which are some of the prominent companies in the Indian consumer goods sector?

Ans. Notable companies in the Indian consumer goods sector include Hindustan Unilever, ITC, Nestle India, Marico, and many others. These companies are leaders in various segments of the sector.

3. What factors impact the performance of consumer goods sector stocks in India?

Ans. Factors influencing these stocks include consumer sentiment, income levels, inflation, government policies, and changing consumer preferences. Additionally, factors like supply chain management and competition play significant roles.

4. How can investors make informed decisions when investing in consumer goods sector stocks in India?

Ans. To make informed investment decisions, investors should research individual companies, assess financial performance, understand market trends, consider the economic environment, and consult with financial advisors to align investments with their financial goals and risk tolerance.

Conclusion

The consumer goods sector in India represents a vital and stable segment of the stock market, closely intertwined with the nation's growing domestic consumption. This sector encompasses a broad spectrum of products that cater to the daily needs and preferences of Indian consumers, from basic necessities to discretionary items.

Consumer goods sector stocks have historically shown resilience and steady growth due to India's burgeoning population and rising income levels. These stocks are often considered defensive investments, as consumer demand remains relatively consistent even during economic fluctuations.

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