The FMCG sector in 2024 has undergone remarkable change with startups driving innovation and quick commerce redefining consumer behaviour. As digital-first strategies take precedence, this transformation signals a new era where agility and consumer-centricity are no longer optional but imperative.
Saugata Gupta, Managing Director and CEO of Marico., shared his insights on LinkedIn on the evolving landscape, emphasising the need for innovation and consumer-centric approaches.
"Quick grocery deliveries are the future," Gupta remarked, noting that such services now make up 35 per cent of online FMCG sales—double from the previous year. "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."
Here are the five trends reshaping the FMCG sector:
1. Quick Commerce Gains Traction
Gupta highlighted that quick commerce is revolutionising consumer habits, with indulgent snacks and beverages seeing a surge in demand. "It’s about meeting customers exactly where they are," he said, underscoring the convenience factor driving this growth.
2. Shifting Consumption Patterns
While urban consumption faced temporary slowdowns, rural India displayed steady growth, driven by rising incomes. "Even with food inflation challenges, premium products have thrived among middle-class consumers," Gupta shared. Brands adapted by introducing innovative formats and affordable packaging to cater to these trends.
3. Sustainability Becomes a Priority
Eco-friendly packaging and bio-based production are on the rise, supported by the new BioE3 Policy. Gupta praised the integration of traditional processes with modern solutions, saying, "This is a trend I hope to see grow in 2025."
4. Digital Transformation Takes Center Stage
While 75 per cent of FMCG brands prioritised digital initiatives, only 12 per cent felt equipped to manage supply chain complexities. Gupta pointed out the increasing importance of robust tech integration to overcome these hurdles.
5. Mobile-First Strategies Dominate
With India’s ecommerce FMCG market expected to hit USD100- USD105 billion by FY25, mobile-first strategies emerged as a game-changer. "Brands that effectively combine traditional efficiency with digital agility will lead the future of FMCG," Gupta noted.
As the sector embraces these changes, Gupta emphasised the importance of balancing innovation with affordability. "My hope for 2025 is that the sector continues to advance while ensuring everyday essentials remain accessible and budget-friendly for consumers," he concluded.
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