The traditional ways are getting replaced in Indiaand so are the food habits and consumption methods. The recent study shows that Fast Moving Consumer Goods (FMCG) sector is largely influenced by food and house hold goods. This is due to the rising incomes and changing household spending patterns of the people in the country.
A drastic shift is seen towards pre-packaged foods and increase in sale of household products. The pre-packaged foods especially break-fast cereals are getting popular. The traditional and customary food habits today are getting replaced by pre-packaged foods inIndia and this is the primary reason behind its growth.
Ask someone about his breakfast inIndia, it would be Dosas or chapatti’s earlier. Today it is getting replaced by cornflakes and the breakfast is complete with that. When it comes to household products it is going to be booming.
The research study” Convergence with Divergence” analyzed the household spending in countries likeChina,India,TurkeyandSouth Africa. The results reveal that these companies will change in a great way when it comes to household goods compared to theUSand theUK. The study also says that consumer spending in these growing markets is expected to reach between 7.7 per cent and 15.2 per cent. It shows Indian market will grow over 13 per cent between 2013 and 2016.
The rich countries of the world are still managing the economic fall-out in 2008 but the emerging markets are seeing a significant rise in their incomes. This is providing FMCG businesses opportunities to enter new markets. The Indian household market is expected to grow to an amazing level with its brand loyalty to those companies that have invested in large scale distribution.
It is also expected that the total expenditure inIndiawill grow by 12 per cent. There will be a mixed growth among categories, says the study. Personal care and beauty care will remain dominant while food service remains stagnant and clothing sector volatile.
The key findings of the report are:
- Growth in laundry detergents in Chinadue to growth in Washing Machines.
- Food Market will boom in Mexico.
- South African market will see a huge sale in drinks and coffee.
- Sun Cream market will see a heavy growth in Turkey with more people opting for Sunbath.
- InUKit’s chocolate and small treats that will see big growth.
- US will see a boom in soft drinks market, alongside alcohol market.
Understanding market conditions are important for any key business before investment and the findings will prove helpful for marketers.
