In the past decade, specific product categories such as washing liquids, noodles, biscuits and cookies, breakfast cereals, and floor cleaners defied the overall trend as they experienced significant volume growth, even surpassing the growth of the FMCG industry. Kantar’s analysis attributes this success to a robust emphasis on rural markets and innovative strategies within these categories.
The insights and research firm observed that washing liquids achieved the highest volume growth among product categories in the past decade.
In a comprehensive analysis, Kantar has identified 14 categories as “star” performers that have demonstrated consumption growth, with volume increases exceeding 1.5 times the GDP growth over the past decade (2014 vs. 2023). Among the notable star categories in the food sector are noodles, sauces and ketchups, biscuits and cookies, bottled soft drinks, breakfast cereals, and spices. In addition to washing liquids, non-food categories such as floor cleaners, toilet cleaners, utensil cleaners, hair wash, sanitary products, rubs and balms, and insecticides have also surpassed GDP growth rates by at least 1.5 times.
In the meantime, according to Kantar’s analysis, skin creams, toilet soaps, milk food drinks, toothpaste, talcum powder, vermicelli, and deodorants were categorized as “chasers.” The volume growth in these product categories either matched or fell below 1.5 times the GDP growth rates.
During this period, robust volume growth in “Star” categories was fueled by exceptional expansion in rural regions, effective product launches, and innovative strategies.
K Ramakrishnan, Managing Director, South Asia, Kantar Worldpanel, said, “When you look at a 15-year window, the growth rate of FMCG has always lagged the GDP growth. However, there are some categories that are exceptions to this trend. What sets these winning categories tends to be their rural growth, the extent and success of their innovations, the relationship with the growth in consumers wealth and disposable income, and the ability to ride on policy actions by the government like Swachh Bharat, etc.”
For instance, the Noodles category, over the past decade, has not only seen the entry of new players but has also undergone significant flavor innovations, the most recent being influenced by the Korean flavor trend.
On the growth journey of the biscuits and cookies segment, Mayank Shah, Senior Category Head, Parle Products, said, “The category offers a wide range of assortments, from sweet and savoury to functional benefits. The category is so versatile that it straddles various consumption occasions. Starting at INR 100 per kg, biscuits are the most affordable offering that has a longer shelf life and has been made available in the remotest parts of the country.”
