How Warehousing Powers Bengaluru’s FMCG Growth

Bengaluru holds the largest share of the fast-moving consumer goods (FMCG) market, contributing 18-20% due to its robust startup ecosystem, trends toward premium products, and the expansion of e-commerce. Hyderabad follows in second place with a 15-18% share, particularly excelling in food processing and pharmaceutical-related FMCG.

The strong IT workforce in Bengaluru, combined with high disposable incomes and an increasing demand for premium and health-conscious products, has further propelled this growth. This rapid expansion has significantly impacted the demand for warehousing, as companies require efficient storage and distribution solutions to meet consumer expectations.

The Indian Fast-Moving Consumer Goods (FMCG) sector has experienced significant growth in recent years. According to a report by Introspective Market Research, the market size was valued at approximately USD 210.12 billion in 2023. It is projected to reach USD 884.06 billion by 2032, reflecting a compound annual growth rate (CAGR) of 17.31% from 2024 to 2032.

In Bengaluru, the FMCG (Fast-Moving Consumer Goods) sector has experienced significant growth. As of January 2025, hiring in this sector increased by 30%, reflecting strong expansion and a rising demand for warehousing and logistics support.

This rapid growth highlights the need for efficient warehousing solutions to address the growing consumer demand in the FMCG sector.

The rapid urbanization and technology-driven consumer behaviour in the city have fueled growth in the fast-moving consumer goods (FMCG) sector. There is a rising demand for organic food, premium personal care items, and international brands, prompting businesses to improve their logistics to ensure timely product availability.

Several FMCG companies have significantly contributed to Bengaluru's growing market. Established brands like Britannia Industries, ITC Limited, and Nandini (KMF) have a strong presence in the city. Meanwhile, emerging startups such as iD Fresh Food, Paper Boat (Hector Beverages), and Akshayakalpa Organic are reshaping the FMCG landscape with innovative and premium product offerings.

With the expansion of these brands, Bengaluru's demand for warehousing and efficient supply chain solutions continues to rise, making logistics infrastructure a crucial factor in sustaining growth.

Bengaluru's warehousing sector is rapidly growing, driven by the FMCG market. From 2018 to 2022, demand outpaced supply by 55%, leading to lower vacancy rates and a 10% increase in rental prices. In fiscal year 2023, transactions reached 7.4 million square feet, a 25% year-over-year growth, with 3PL companies making up 45% of leasing activity. Businesses are investing in automation and IoT, and key players like All Cargo, Welspun, and IndoSpace are expanding, requiring over 250 acres for future developments. This growth supports Bengaluru's FMCG market and supply chain needs.

Warehousing plays a pivotal role in ensuring FMCG companies can effectively meet consumer demand. Key contributions include:

• Consistent Supply: Strategically located warehouses reduce stockouts and delivery delays, ensuring product availability for consumers.

• Optimized Inventory Management: Real-time stock-level data allows businesses to avoid overstocking and understocking, minimizing waste and lost sales.

• Enhanced Supply Chain Efficiency: Integrating warehousing with transportation management cuts transit times and costs, leading to a more responsive supply chain.

The importance of warehouse for FMCG sector cannot be overstated, as it directly impacts efficiency, profitability, and customer satisfaction.

Bengaluru's leadership in the fast-moving consumer goods (FMCG) market is transforming the warehousing landscape. There is a growing focus on technological advancements, storage optimization, and efficient distribution networks. As the sector continues to thrive, effective warehousing solutions will play a critical role in meeting consumer demand and maintaining a competitive edge.