5 C
London
Monday, December 5, 2022

Small packaging forces consumers to shop more often, leading to an increase in FMCG brand purchase frequency: Kantar report

Must read

These companies are the top 10 employers in India according to the Hurun List 2022

These companies are the top 10 employers in India according to the Hurun List 2022

Broadway actor Quentin Lee dies of colon cancer at the age of 34

Broadway actor Quentin Lee died of colon cancer on Tuesday morning.Lee is best known for his portrayal of the phantom in Andrew Lloyd Webber's...

Collaborate with Aerospace Corp, Antaris, Orbital Reef and Space Systems Command during TC Sessions: Space • londonbusinessblog.com

As we prepare to launch our third TC Sessions: Space conference next week on December 6 in Los Angeles, we are still feeling the...

Why drone delivery is a utopia – and what you need to know about the government’s plans

In early November, the Commonwealth Department of Infrastructure invited public comment on proposed Australia-wide “drone delivery guidelines” it is quietly developing with industry stakeholders. A...
Shreya Christinahttps://londonbusinessblog.com
Shreya has been with londonbusinessblog.com for 3 years, writing copy for client websites, blog posts, EDMs and other mediums to engage readers and encourage action. By collaborating with clients, our SEO manager and the wider londonbusinessblog.com team, Shreya seeks to understand an audience before creating memorable, persuasive copy.

  • Rising retail inflation has made it difficult for Indian consumers to make a living.
  • Not only have they shelved their big life plans, but consumers are also switching to smaller products and less popular brands to cope with high inflationary pressures.
  • They leave behind their old habits of buying their ration in bulk.
  • According to Kantar’s recent report, consumers are buying smaller packages, which quickly run out and lead to high purchase frequency for FMCG brands.

Inflationary pressures have pushed Indian consumers to switch to smaller packaging. But soon the packaging runs out and consumers have to visit supermarkets again to refill the ration. As a result, the purchase frequency of Fast Moving Consumer Goods (FMCG) products has increased.

According to data analytics firm Kantar, India’s FMCG brands witnessed a massive jump in their Consumer Reach Points (CRPs), which take into account a brand’s reach in the country, overall penetration and purchase frequency.

The report predicts that with high inflation this year, purchase frequency and brand penetration are expected to grow even further.

“As consumers face inflation trends, they tend to switch to smaller packs, but buy more often to meet their overall requirements. This results in an improved frequency,” said K. Ramakrishnan, Managing Director-South Asia, Worldpanel Division at Kantar.

Established brands that quickly read the market and launched smaller packaging were able to make a leap forward. According to Kantar, the bigger the brand, the faster the growth they see.

As a result, FMCG giants with a penetration level of more than 61% grew the fastest, growing more than 8% in 2021 compared to 2020.

“This year, as consumers flocked to the market after tightening conditions over the past year, the frequency has increased significantly, which is reflected in the leaps most brands took in their CRPs. That’s why bigger brands always have an advantage,” says Ramakrishnan.

Over the past decade, Parle Products has been untamable in terms of reach, penetration and purchase frequency. This year again, Parle was in first place with CRPs of 6,531 million and a growth of 14%.

Ramakrishnan told why Parle continues to hold the top position despite high inflation, saying, “One of the things that works for them [winner brands such as Parle] is that they reach a large number of people that’s why their distribution works for them as they build their penetration. Second is packplay – they stick to Rs 2 pack and Rs 5 pack which helps in growth significantly. So the lower the pack, the more frequency, so growth in CRPs.”

After Parle, Amul, Britannia, Clinic Plus and Tata Consumer Products scored highly on CRPs.

Newer FMCG brands are gaining popularity in India

Newcomers such as candy and snack maker Haldiram and cookie and confectionery maker Anmol joined the multi-billion dollar CRP club, improving their reach and penetration in the country by leaps and bounds.

Many regional brands also witnessed an increase in CRPs, such as spice brands like Rajesh and Rakesh.

In the dairy industry, Kerala’s Milma, Karnataka’s Nandini milk and Telangana’s Vijaya also made it onto the list.

Growth is driven by food, drink and hair care

By 2021, 70% of FMCG brands saw an improvement in their CRPs from 2020 — a jump of 56%. This growth was driven by food, health & beauty and beverage brands.

Beverage brands grew by 18% in 2021, followed by food by 15% and health and beauty by 7%.

Nescafe registered 19% CRP growth within beverage brands, followed by Boost at 15%.

Some snack brands grew more than 30%, with Balaji growing 49%, followed by Kurkure at 45% and Bingo at 37%.

Brand Footprint India’s Top 10 Most Chosen FMCG Brands in 2021:

2021 Rank 2020 Rank Brand CRP (Mn)
1 1 Parle products 6531
2 2 amul 5561
3 3 Britannia 5370
4 4 Clinic Plus 4506
5 5 Tata Consumer Products 2723
6 6 Ghadi 2315
7 7 Nandin 2278
8 8 Colgate 2134
9 9 aavin 2024
10 10 lifebuoy 1896

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest article

These companies are the top 10 employers in India according to the Hurun List 2022

These companies are the top 10 employers in India according to the Hurun List 2022

Broadway actor Quentin Lee dies of colon cancer at the age of 34

Broadway actor Quentin Lee died of colon cancer on Tuesday morning.Lee is best known for his portrayal of the phantom in Andrew Lloyd Webber's...

Collaborate with Aerospace Corp, Antaris, Orbital Reef and Space Systems Command during TC Sessions: Space • londonbusinessblog.com

As we prepare to launch our third TC Sessions: Space conference next week on December 6 in Los Angeles, we are still feeling the...

Why drone delivery is a utopia – and what you need to know about the government’s plans

In early November, the Commonwealth Department of Infrastructure invited public comment on proposed Australia-wide “drone delivery guidelines” it is quietly developing with industry stakeholders. A...

How to activate and align your values ​​when you are under pressure

Opinions expressed by londonbusinessblog.com contributors are their own. In times of high pressure, ambitious core values ​​can seem completely impractical. Who has time to...