Multi-Linear Regression-Based Fast-Moving Consumer Product Demand Forecasting Model

Ramesh Prasad Tharu; Dr. Rajendra Kumar Tripathi

Abstract

FMCG consumption has significantly increased as a result of the Indian economy's robust expansion over the past decade. India's FMCG industry has seen a 21.4 percent revenue growth rate over the past ten years, with revenues increasing from US$ 31.6 billion in 2011 to US$ 52.8 billion in 2017 and 2018 respectively. The FMCG industry in India was anticipated to reach US$103.7 billion by 2020 at a CAGR (combined annual growth rate) of 27.9 percent. In addition, a CAGR of 14.6% is anticipated for the rural FMCG market, which is expected to reach US$100 billion in 2020 and US$220 billion in 2025. Rural businesses generate 45 percent of the FMCG industry's total revenue, while urban businesses generate 55 percent. In India, over 65% of people live in rural areas, where they spend approximately 50% of their income on fast-moving consumer goods. By 2025, it is anticipated that 850 million Indians will make online purchases of consumer goods. Using aggregate demand patterns, the purpose of this paper is to attempt an econometric analysis of the sector-by-sector growth in FMCG market demand in India. It tries to project request supply holes up to 2017 - 2018. Academics and businesses would be interested in the findings.

Keywords

Fast Moving Consumer Goods, Annual growth Rate, Aggregate demand, Demand – Supply gaps

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Cites this article as

R. P. Tharu, D. R. K. Tripathi, "Multi-Linear Regression-Based Fast-Moving Consumer Product Demand Forecasting Model", International Journal of Innovative Research in Engineering & Management (IJIREM), Vol-8, Issue-4, Page No-49-52, 2021. Available from: