India s neighborhood grocery stores, numbering around 12 million, experienced a slowdown in sales in the last quarter of 2023, while quick-commerce firms gained market share. Companies like Marico, Dabur, and Parle noted challenges in profitability and liquidity for traditional kirana stores. Quick-commerce platforms like Swiggy Instamart and Zomato-owned Blinkit have contributed significantly to FMCG sales, accounting for 30-50% of e-commerce sales for these companies.
The market research firm said it expects the industry to grow at between 4.5% and 6.5% in calendar year 2024. At the lower end, this would translate to less than half the 9.3% growth rate achieved in 2023.
Budget News: India's fast moving consumer goods companies are banking on the interim Budget's proposals to boost agricultural growth, rural economy, step up farmers' income and support infrastructure development to give a leg up to consumption - helping the sector that has been hit by a sluggish rural demand.
Budget 2024 Spiritual Tourism: Following Finance Minister Nirmala Sitharaman s encouragement for states to develop religious sites, companies anticipate a surge in demand in spiritual tourism. Executives plan to boost distribution, manufacturing, and stocking near these sites to meet potential demand. Consumer companies, including staples, groceries, and hospitality, aim to enhance distribution networks and increase marketing spends.
Companies are ensuring that the temple town is well stocked before an anticipated surge in visitors in the days following the inauguration of the Ram Temple on January 22.