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India to be 5th largest FMCG market by 2025: EY Report

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Country's long term consumption story seems to be intact as India is expected to be the fifth-largest consumer products market in the world by 2025 with a size of $262 billion, according to an EY India report.

India to be 5th largest FMCG market by 2025: EY Report
Country's long term consumption story seems to be intact as India is expected to be the fifth-largest consumer products market in the world by 2025 with a size of $262 billion, according to an EY India report.
According to the report, a robust ecosystem along with a favourable demographic is expected to drive growth in India’s consumer retail sector.
Rapid changes in technology, the emergence of ecommerce and social media is pushing incumbents to tweak their strategy to stay relevant. "Companies need to be agile and keep consumers at the centre of the heart. Companies need to deliver products that consumers really want," said Pinakiranjan Mishra, Partner and National Leader - Consumer Product & Retail, EY India.
Consumer goods companies have started personalising both digital and product strategies to cater to the target audience. "Mondelez is consumer obsessed and we have built a digital strategy to understand consumers better. Our digital strategy is focused on how to maximize return on investment on media investments,” said Sanjay Gurubaxani, CIO - Asia, Middle East and Africa, Mondelez. The chocolate and snacking giant also does personalisation in its gifting portfolio.
With the advertising pie shifting beyond the conventional mediums, brands are now engaging with consumers across multimedia platforms. Social media is certainly one such platform. Up to 60 percent consumers across age groups said that social media was an important influencing factor to try a new brand, according to the EY India survey on consumer insights.
Based on such consumer insights and trends, FMCG companies are happy to invest in these areas of interest. For instance, to cater to the trend towards health and wellness, FMCG companies have launched products with less sugar, salt and fat.
In a bid to align themselves with sustainability goals, companies like Hindustan Unilever has launched detergent that reduces the amount of water required to rinse clothes. "Companies need to innovate more, experiment more and learn faster. In this way, scale up the innovation and build on the same learning," said Zaved Akhtar, VP, Digital Transformation and Growth - South Asia, Hindustan Unilever.
Partnering with start-ups in the ‘emerging’ consumer domains could help larger FMCG companies stay relevant to consumers. Owing to their sharp focus on consumers, start-ups are able to build nimble organisations with better turnaround time. Building in innovation in the overall business model for large consumer giants could be a good way to stay relevant to consumers, say experts.
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