It is no wonder that the relationship between brands and customers is similar to that of plants and honey bees, and what symbiotically connects them both is the process of pollination, or in this case, marketing!
Talking of marketing, it is the FMCG sector which for years has been renowned for its hefty yet conscious advertising spends, making it the backbone of Indian advertising indeed. And amongst these FMCG majors in the country is the parent company of Parachute, Saffola, Hair & Care, Nihar Naturals, Mediker, Coco Soul, Livon, Beardo, Just Herbs, True Elements and much more- Marico.
According to erstwhile ASCI Chairman and Marico’s Managing Director and CEO, Saugata Gupta, what drove the Indian brandland in 2024 was mobile-first strategies, which in the FMCG space truly emerged as the game-changer.
In fact, the impact of the same was such that he expects the country’s e-commerce FMCG market to hit $100B-105 billion by the end of next fiscal year, i.e.- April 31, 2026.
Taking to LinkedIn, he mentioned, “10-minute delivery, premium experiences, and sustainability on the rise- 2024 was the year #FMCG brands raced to meet customers exactly where they were.”
According to him, the following developments highlighted the FMCG companies year in 2024:
- Going digital
Brands rushed to go digital, but challenges remained. While 75% made digital a priority, only 12% felt prepared for supply chain complexities.
To him, this showed a deeper need for tech integration going forward.
- Changing consumption pattern
Urban consumption slowed, but it’s a short-term issue. Rural India is growing steadily, with rising incomes driving the demand. Even with the challenges of food inflation, premium products continued to thrive among the middle class consumers.
People chose high-quality, health-focused products. Brands adapted with innovative formats and affordable sizes.
- Quick Commerce picked up the pace
The channels are undergoing tremendous transformation with the consumer shifts that the industry is witnessing. Quick grocery deliveries are the future! They make up 35% of online FMCG sales—double than last year! With more people staying in, indulgent snacks and beverages saw a rise in demand.
- Sustainability met innovation
Eco-friendly packaging and bio-based production is with, especially with the new BioE3 Policy coming in. Seeing traditional processes paired with modern solutions is a trend I hope to see grow in 2025.
- Mobile-first strategies drove the market
Mobile-first strategies became the game-changer in our industry, with India’s e-commerce FMCG market expected to hit $100B-$105B by FY25.
That being said, on a forward looking note for 2025, Gupta mentioned that he expects the sector builds on the above advancements while ensuring that everyday essentials remain accessible and budget-friendly for consumers.
“The transformation of the FMCG industry represents more than a channel shift – it’s a fundamental redesign of how consumer goods companies create and deliver value,” he expressed.
Furthermore, he also elaborated that the future of FMCG belongs not to the largest or the most digital companies, but to those that can most effectively combine the efficiency of traditional operations with the agility and consumer-centricity of digital-first brands.
“For me, it is about creating meaningful and personalized experiences that truly connect with the consumers. On that note, wishing everyone a wonderful new year and a lot more successes for those looking to expand in these markets!” he concluded.
