06th February 2012, www.news360.lk
Sri Lanka’s Fast Moving Consumer Goods market has seen a rapid growth over the years, says a new equity research report.
The report says this has created fierce competition among manufactures, who are trying to provide quality products at a normal price range for the local consumers.
The report compiled by Bartleet Religare Securities also says, according to the available data, Sri Lanka’s FMCG market weighed at Rs. 141 billion during the year 2010.
It says, out of this portion 74% is captured by the Food and Beverage sector which also includes the consumption of cigarettes.
The report discloses that personal care and home care compete closely with a market share of 15% and 11% respectively.
BRS points out, that despite the growth in the FMCG sector, its traditional dependence on imported goods has slowed down as local manufacturers are substituting with equally good products.
The study reveals that in comparison to neighboring countries like India and Thailand Sri Lankan consumers on average shop at least four times a month.
“Increasing population in a country backed by strong per capita income growth would also influence consumers to buy more frequently”, adds the BRS report.
It says, Sri Lanka has a higher per capita income in comparison to other SAARC countries which it points out is said to increase to USD 4,000 by 2016.
The research finds that according to 2009/2010 official data, expenses of a household in Sri Lanka runs up to around Rs. 32,446 and out of that 40% is dedicated to food and drinks.
The balance, the report points out is distributed between various segments in the likes of housing, fuel and lighting, health care etc.
Related Info :
• Unprecedented Growth in Sri Lanka Supermarket Trade in Coming Years – Research Report