Top 10 Predictions for FMCG in India in 2016

2015 was an interesting year for FMCG and services industries in India. Luxury goods, soft drinks and consumer foodservice benefitted the most from consumers’ increased discretionary spending. In contrast, tobacco and alcoholic drinks growth continued to be restricted due to stricter government regulations.

Additionally, the ban on Maggi redefined the food and safety regulations in India and impacted sales of other packaged foods, such as instant pasta.

With 2015 having drawn to a close, we have evaluated the trends that will shape FMCG and services industries in India in 2016.

Here are Euromonitor International’s top 10 predictions for FMCG in India:

  • Increasing discretionary spending among consumers will benefit childrenswear brands, with H&M Kids and US Polo Kids expanding their presence in the country by increasing their number of exclusive branded outlets.
  • Platinum will become a sought-after metal among men, while, for working women, it will be lighter designs in gold for officewear.
  • Instant noodles and instant pasta will see more new launches, with FSSAI guidelines becoming more defined.
  • Hair oils will make a comeback in consumers’ personal care kits as manufacturers introduce and promote value-added products.
  • Appliances like air purifiers and smart televisions will see double-digit volume growth, but will remain restricted to just a few metropolitan cities as they grow from a small base overall.
  • Mango will become the next big flavour in alcoholic drinks, with manufacturers and microbreweries introducing drinks in mango flavour.
  • Proximity payments using mobile phones will start to catch up in India.
  • Innovations in formats of consumer healthcare products will gain traction in 2016. Already we have seen Dabur introduce Hajmola Yoodley, a ready-to-drink format of its popular digestive remedies brand Hajmola.
  • Players such as Airbnb and Oyo Rooms will help to significantly expand travel accommodation options and make lodging more affordable.
  • All supermarkets will have mobile apps to make grocery shopping easier for consumers. Smaller retailers like Sangamdirect led the way by introducing mobile apps in 2015, the big ones will follow suit in 2016.