![India sole Asia-Pacific market with double-digit growth in FMCG and tech durables: Report India sole Asia-Pacific market with double-digit growth in FMCG and tech durables: Report](https://www.indiablooms.com/finance_pic/2024/565c488e06f9d0c9b31bc7b62099ac13.jpg)
India sole Asia-Pacific market with double-digit growth in FMCG and tech durables: Report
A report by consumer research firm NielsenIQ (NIQ) highlights India's dominant position as the only market in the Asia-Pacific region consistently achieving double-digit growth in the FMCG, and tech and consumer durables (T&D) sectors, media reports said.
According to the report, this growth is the result of the resilience and evolving preferences of Indian consumers.
The report, titled “Full View of Modern Trade Retail Trends”, released on August 21, emphasizes the significance of modern retail as a key growth driver, particularly through premiumisation.
It also notes that 41 percent of urban Indian shoppers surveyed research products online before purchasing them in-store.
Despite inflationary pressures, modern trade has remained resilient, with double-digit volume growth persisting despite price fluctuations.
According to NIQ data, comparing March 2024 to March 2023, FMCG sales in modern trade increased by 2 percent in urban India, while T&D sales grew by 4 percent.
Additionally, the report underscores the importance of festivals as major contributors to modern retail, accounting for 20 percent of incremental sales in FMCG and 60 percent in T&D.
“Non-food categories, in particular, grow 1.8 times faster than food during these periods, driven by deep discounts and consumer preference for non-essentials. Key categories such as toothpaste, soap, and washing powder lead the charge, clocking 20 to 30 percent incremental sales on big days,” the report noted.
Another key driver for modern trade is the premium-plus price segment, which accounts for nearly 40 percent of FMCG sales and 30 percent of T&D sales.
“Many new product launches in modern trade are in the premium-plus space, reflecting growing consumer willingness to pay up to 2X the average price for superior benefits and features,” said Sonika Gupta, Executive Director, Customer Success – India, at NIQ.
The report states that brands should consider optimizing their offerings in the premium-plus segment to stay competitive and meet consumer expectations.
It also highlighted the growing popularity of smaller packs, which are expanding at twice the rate of larger packs, and the increasing presence of private labels and smaller players in the market.
These factors are intensifying competition in modern trade, with shelves now holding over 78,000 items, according to Gupta.
“This trend is evident across both food and non-food categories, offering brands the opportunity to optimise their existing assortment for higher ROI, while also innovating with smaller packs to encourage consumer trials,” she added.
Private labels are expanding 1.5 times faster than large manufacturers, and small players are responsible for 70 percent of new launches in modern trade, focusing on natural ingredients and luxury pricing that exceeds the category average by more than 200 times.
Additionally, the T&D segment is introducing innovative features that cater to modern consumer preferences.
The report emphasizes that, due to increasing competition and innovation, marketers need to stay vigilant as consumers are increasingly drawn to new brands offering unique benefits and advanced features.
“To stay competitive, businesses must strategically optimise their product assortment, ensuring enhanced visibility and maximising ROI from the modern trade channel. That way, brands can effectively leverage the channel's consistent double-digit growth and secure a stronger foothold in this evolving market,” the NIQ report concluded.
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