As GDP outpaced FMCG industry growth in the last decade, certain categories, including washing liquids, noodles, biscuits and cookies, breakfast cereals, and floor cleaners, bucked the trend. Strong rural focus and innovations helped these categories garner high volume growth, according to an analysis by Kantar.

Washing liquids emerged as the fastest-growing category in terms of volume growth in the last decade, the insights and research firm noted.

Star performers

Overall, Kantar identified 14 categories as “star” performers that are witnessing growth in consumption and have recorded volume growth that was at least 1.5 times the GDP growth in the past decade (2014 vs. 2023). In the food sector, star categories include noodles, sauces and ketchups, biscuits and cookies, bottled soft drinks, breakfast cereals, and spices. Besides washing liquids, non-food categories that have surpassed GDP growth rates by at least 1.5 times include floor cleaners, toilet cleaners, utensil cleaners, hair wash, sanitary products, rubs and balms, and insecticides.

Chasers

Meanwhile, Kantar’s analysis listed skin creams, toilet soaps, milk food drinks, tooth paste, talcum powder, vermicelli, and deodorants as “chasers.” Volume growth in these categories was at par or under 1.5 times the GDP growth rates.

Exceptional growth rates in rural regions, successful product launches, and innovation are among the factors that enabled “Star” categories to garner strong volume growth during this period.

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Rural growth

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, which has seen the entry of new players in the past decade. In addition, it has seen considerable flavour innovations, with the latest being the Korean flavour 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 ₹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.”

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