A report, titled ‘Full View of Modern Trade Retail Trends’ by consumer research firm NielsenIQ (NIQ), released in August, says,”India emerges as the only market consistently delivering double-digit growth in both the FMCG and tech & durables sectors, underscoring the resilience and evolving preferences of Indian consumers.”
The key points from this report are summarized below:
1. Market Performance
India has a dominant position in the Asia Pacific region in modern trade sales. (Modern Trade is the Indian term for Big Box retailing)
– In March 2024, modern trade channels saw a 2% growth CPG sales and a 4% growth in tech & durables sales.
2. Consumer Behavior
– 41% of urban Indian shoppers research products online but purchase in-store.
– 40% of FMCG sales are in the premium-plus price segment
– 30% of tech & durables sales are in the premium-plus price segment
– Consumers are willing to pay up to twice the average price for superior benefits and features.
3. Festive Season Impact
– Festivals are crucial for sales, the biggest being Diwali in the Fall
– Contribute 20% of incremental FMCG sales
– Contribute 60% of incremental tech & durables sales
– Non-food categories grow 1.8 times faster than food during these periods.
– Key categories such as toothpaste, soap, and washing powder see 20-30% increase in sales during peak periods.
4. Market Dynamics
– Modern trade is becoming more competitive, with shelves now accommodating over 78,000 items.
– Private labels are growing 50 percent faster than large manufacturers.
– Small players are driving 70% of new launches, focusing on natural ingredients and luxury pricing.
– Smaller pack sizes are growing at double the rate of large packs.
5. Future Outlook
– Brands are advised to optimize their offerings in the premium segment.
– Marketers should remain vigilant regarding consumer preferences for innovative features and unique benefits.
– Despite the growth of online channels, modern trade remains a preferred shopping method.
The report highlights India’s unique retail landscape, characterized by resilient consumer spending, a strong preference for premium products, and a dynamic modern trade ecosystem.
Last updated: December 26th, 2025
