Bottled Soft Drinks See 50% Demand Surge In Sweltering India
Groceries remain the largest household expense, making up over 24% of quarterly expenditures.
The consumption of bottled soft drinks among Indian households has surged in the past two years, surpassing an annual penetration rate of 50% in financial year 2024, according to a Kantar FMCG pulse report. The average household's soft-drink consumption has increased by 250 ml over this period, and this trend is expected to continue.
The bottled soft drink category experienced a significant 41% household growth in the moving annual total for March 2023 and expanded by 19% in the MAT March 2024. The report anticipates continued growth in this category due to the hot weather.
Consumers are now shopping for fast-moving consumer goods 156 times a year, approximately every 56 hours, through both online and offline channels. Despite this frequency, the average basket value has decreased as shoppers are not buying as many packs as before.
Groceries remain the largest household expense, making up over 24% of quarterly expenditures. The report also noted that while inflation has slowed to acceptable levels, its impact is still felt by consumers.
Fabric softeners, considered a premium laundry item, are now used in one out of every four households in India. Washing liquids, another premium product, exceeded 1 lakh tonnes in consumption in the last fiscal, marking a record-breaking trend.
Shoppers are not downsizing their pack sizes but are maintaining or slightly increasing them. Premium-end discretionary categories like washing liquids and indulgent products, such as bottled soft drinks, have performed exceptionally well.
The report concludes that although some market segments remain under stress, the overall sentiment among consumers is optimistic. This optimism continues to drive the Indian consumption story forward, even in challenging times.
(With inputs from PTI)
