Personal Care Products Trump Food in Indian Retail Stores

Personal Care Products Trump Food in Indian Retail Stores

Indians are more likely to find more personal care products than food in a store these days.

Data from market research firm Nielsen discloses that on the list of the top five  CPG (FMCG in India)  product categories, only biscuits find a place. Shampoos occupy the first place with maximum market penetration at 79%.

Distribution of categories has undergone a transformation in the last 15 years. Consumers have access to 8.8 million outlets across India, and shampoo is available in 80 per cent of those shops, says D Shivakumar, chairman and CEO, PepsiCo India. Skin creams are in the top 10 distributed list while packaged tea, which was the most distributed category a few decades ago, is now out of the top 10.


Changing Consumption Pattern
Source TOI Rural

However, these equations could change. Distribution of salty snacks has increased from 58% to 64% while noodles, which has still not broken into the top-ten list, has seen an increase in penetration from 38% to 42%. Branded items are slowly gaining wider reach versus non-branded items, and daily-use, low-unit price, easy-to-sell items via wholesale are in demand.

Nielsen predicts that India’s FMCG industry will grow from $37 billion in 2013 to $49 billion by 2016. However, the rise of e-commerce may bring about several new models which may evolve over the next few years.



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