Refined oil consumer packs and packaged atta have registered strong double-digit growth rates over a five-year period according to the ACNielsen India retail audit. Refined oil consumer packs have grown by 27 per cent and packaged atta by a similar 25 per cent in terms of compounded annual growth rates.
The list of fastest growing FMCG segment above Rs 500 crore over a five-year period is populated with other food categories like non-refined oils, namkins and biscuits. The tail end of the list includes chocolates, beverages and vanaspati consumer packs, each with a long-term growth rate of seven per cent.
These trends are testament to the aggressive rise of commodity branding that has been aided by the lowering cost of technology, the proliferation of regional media and the rise of aggressive regional players making foray into categories where the barriers to entry are low. This, combined with the increasing contribution of urban India to the FMCG market and rising need for these products by consumers who value convenience, are the key contributory factors.
In the short term too, the categories that have posted strong long-term positive performances have maintained their momentum. Namkins have grown by 30 per cent year-on-year while refined oil, non-refined oil and biscuits have clocked healthy double-digit growth rates.