The Indian retail market is expected to grow by 60 percent to hit USD 1.1 trillion in the next three years, said a joint report by Assocham and MRRSIndia.com.

This growth in the retail market will be led by factors such as a change in lifestyle and rising income middle class, which helped the FMCG industry to grow at a rapid speed over the past few years.

The retail market in India is estimated to reach USD 1.1 trillion by 2020 from USD 672 billion at present, with modern trade expected to grow at 20 percent per annum, which is likely to boost revenues of FMCG companies, the report said.

It further added,"FMCG market in India is expected to grow at a CAGR (compound annual growth rate) of 21 percent and is expected to reach USD 103.7 billion by 2020 from USD 49 billion in 2016".

Retail and FMCG markets in India are exponentially growing and are expected to grow at 20 percent and 21 percent, respectively, said the study by industry body Assocham and media group MRRSIndia.com.

The rural FMCG market in India is expected to grow at a CAGR of 14.6 percent, and reach USD 220 billion by 2025 from USD 29.4 billion in 2016.

Moreover, the e-commerce will also play a role in the growth story of the sector.

"E-commerce and digital connectivity is not limited to the urban localities, with rural population using these services with high penetration of smartphones, credit cards/ debit cards and online banking services. There are customers sitting in far and wide corners of India waiting to be serviced," it added.

However, it also added that "making their products available to them is next big challenge for large FMCG companies".

Health and wellness are a megatrend shaping consumer preferences and shopping habits.

Leading global and Indian food and beverage brands have embraced this trend and are focused on creating new markets demands.