The FMCG sector has experienced remarkable growth in recent years, driven by factors such as increasing consumer demand, rapid urbanization, rising incomes, and evolving lifestyles. This dynamic sector encompasses a diverse array of everyday essentials, including packaged foods, beverages, personal care products, household items, and more. In line with this trend, the Indian advertising industry demonstrated robust growth, expanding by 8.6% in 2023. Projections suggest further advancement, with an anticipated 9% growth to reach Rs 1,01,591 crore by the close of 2024. However, recent developments have introduced challenges. Following the RBI's ban declaration, a survey conducted by Kirana Club revealed a significant erosion of trust among 'Paytm-using' kirana stores, with two-thirds reporting disillusionment with the app.
This week’s edition of “Indian Retail at a glance” shares insightful articles on How elections, infrastructure push to boost consumption? Why three out of five kirana store owners to switch from Paytm to other payment apps?
FMCG rules Indian ad market with 34% share, e-comm at 14%
As per the dentsu-e4m Digital Advertising Report 2024, the FMCG category holds the largest share in the Indian advertising market, contributing 34% (Rs 31,428 crore), followed by e-commerce (14%), consumer durables (6%), and automotive sectors (6%).
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Elections, infrastructure push to boost consumption: Nestle India CMD
Fast-moving consumer goods (FMCG) major Nestlé India on Thursday said it expects an uptick in consumption on the back of government's infrastructure spending, moderating inflation and the upcoming elections.
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Two sides to India’s consumption story
India’s so-called K-shaped economic growth has a new name – premiumisation. Most consumer companies – auto, FMCG, white goods, etc – are witnessing this trend. FMCG firms are seeing rich and upper middle class customers lapping up premium products. Auto companies are lining up fancy SUVs that cost upwards of Rs 15 lakh but still have long waiting periods.
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Focusing on competitive growth in India, expects price cut, says Unilever
Multinational FMCG firm Unilever is focusing on driving competitive volume growth in the Indian market and expects a price reduction in its products "if current commodity prices persist.
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Reliance buys 82-year-old Ravalgaon candy brand
Reliance Consumer Products, the FMCG arm and a subsidiary of Reliance Retail ventures has acquired the trademarks, recipes and intellectual property rights of Ravalgaon Sugar Farm’s confectionery business in Rs 27 crore deal.
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Three out of five kirana store owners to switch from Paytm to other payment ap
Forty-two percent of the local stores and grocery stores who have been relying on Paytm for UPI transactions are going to be switching to another payment app, while another 20 percent are planning to do the same. CLICK HERE TO READ MORE.
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