Reports
FMCG
Consumption patterns across Tier 1, Tier 2, and Tier 3 markets
The Indian FMCG sector in 2024-25 is undergoing a structural shift, with volume growth (6.5%) becoming the dominant driver of expansion, reflecting a strong recovery in consumer demand.
This growth is geographically inverted: Rural markets now lead with 7.7% volume growth, nearly doubling the urban rate. Tier 2 cities are the "Sweet Spot," exhibiting the highest consumption volume per household. While metros face saturation, Tier 2 and Tier 3 markets are leveraging digital access for aspirational e-commerce.
FMCG
Competitive whitespace in FMCG brands in India
The Indian Ready-to-Eat (RTE) market is set for 16.4% CAGR growth despite a significant consumer trust deficit regarding freshness and preservatives, and intense competition from established brands.
The key strategy is targeting Rural Health-Conscious and Tier-2 Aspirants with mid-premium products that balance local flavors and modern convenience.
-
Technical Core: Investment in Non-Thermal Preservation (HPP) for clean-label products and IoT sensors for verifiable cold chain resilience.
-
Design/Data Core: A Direct-to-Consumer (D2C) platform with superior UI/UX to drive high-margin habitual sales.
Success hinges on overcoming competitive price erosion by investing 15–25% of revenue in brand-building.