The Season Of Festivals: Understanding The FMCG Terrain

The month of fun and frolic is almost over; the festive season has drawn to a close. As with every year, this festive season saw the exchange of gifts, exhibitions of glittering lights and munching on a wide variety of snacks and sweets. The festive season offers an opportunity for different sweets and snack brands to cash in on the increased demand and offer a wide range of products, hampers and discounts. The considerable uptick in demand allows brands to drive up sales and rope in new customers, which is directly translated into increased sales and revenue. 

There has been a 49% increase in online sales during the festive season, a 10% growth over the 39% seen in 2023, according to a report by logistics intelligence platform ‘Clickpost’. This growth has been primarily fueled by increase in demand in tier 2 and tier 3 cities. Different brands offer a spate of discounts and prepare hampers that are the perfect gift for the season. These hampers, curated specifically for the season, have seen robust sales across different brands. 

Speaking on the increased demand, Mr. Rajesh Garg, Managing Director, Priniti Foods had the following to say, “The season witnesses the launch of multiple new sweets and snacks to cater to the rising demand. Beyond new launches, gifting hampers are introduced by many brands. Delicious sweets and appetising snacks are specially curated into hampers that are perfect for gifting during the festive season. For us  though, we intend to use this period to further penetrate the tier 3 and tier 4 cities. We definitely want to increase our consumer base and diversify into previously untapped markets.  For brands, the festive season presents an opportunity to draw in new customers and add to the celebrations through delectable offerings, hampers and discounts. This is the period of joy and mirth, and we want to add to it with our delicious offerings.”

Beyond hampers and discounts, many brands also launch new products and ranges to coincide with the increased demand. A lot of brands also introduce themed products that align with the different festivals celebrated across the country during this period. This allows for customers to be more discerning about the products that they purchase, and a wider variety of options also ensures that a brand is catering to different demands and demographics. 

Speaking on the new products and different offerings, Mr. Neeraj Agrawal, Director, Haldiram’s Foods Inte­rnational Pvt Ltd had the following insight to offer, “At Haldiram’s, upholding the rich cultural and culinary heritage of India is of paramount importance. Therefore, every festive season we introduce a host of new products and offer discounts and curate delicious hampers that can be gifted. The recently concluded Ganesh Chaturthi presented an ideal timing to introduce a new line of modaks. For the subsequent, widely celebrated festivals such as Navratri and Diwali, the brand has launched an exciting new range of burfees in a diverse selection that features flavours such as Cashew Caramel, Coconut Jaggery and Gulkand Dryfruit and Caramel Peda. Additionally, the collection features ladoos in delightful varieties such as Cashew Crunchy, Hazelnut Crunchy and Pistachio Chocolate. Similarly, we have also launched a new range of tinned sweets and gift hampers, for the perfect festive gift.”

The celebrations of these festivals have a long and storied history that is entwined with the social fabric of the country. Over time, different brands and companies have successfully tapped into the festivities and have developed an economic model of sorts that has seen them reap considerable dividends. As the festive season draws to a close, the brands are wrapping up their offers for the year. 2025 would be another year of the same.