FMCG REWRITING INDIA'S GROWTH STORY

Premiumisation in the FMCG industry is set to endure, with aspirational demand rising across urban and smaller towns

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AS 2024 draws to a close, the Indian FMCG sector has demonstrated resilience, innovation, and adaptability amidst evolving consumer expectations and an unpredictable economic environment. The industry has successfully navigated challenges such as rising inflation, supply chain disruptions due to geopolitical issues, and intensified competition. According to industry reports, the FMCG market is projected to see overall volume growth of 5 per cent in FY25, compared to 4 per cent in FY24, driven by a revival in rural demand.

Trend Talk

The emergence of ‘Many Indias,’ characterised by diverse demographics and income groups, has opened new opportunities for the sector. Industry reports suggest that households in Affluent India (India 1) will double to 22 million in the next three years, while 40 million households will be added to the ‘Middle Income’ (India 2) segment over the same period. India’s young population is also shaping consumption patterns. By 2030, millennials and Gen Z will comprise 77 per cent of the population. These digital natives exhibit always-connected, digital-first consumption behaviours.