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Emerging Demand And Disruption In Indian FMCG

Emerging Demand And Disruption In Indian FMCG

May 28, 2025 4 min read Consumer Discretionary
Emerging Demand And Disruption In Indian FMCG

Q1. Could you start by giving us a brief overview of your professional background, particularly focusing on your expertise in the industry?

I have over 17 years of experience in the FMCG industry. Over the years, I’ve worked with companies like Ferrero India, McCain Foods, Hell Energy, and Lindt. My primary strengths lie in managing distribution, expanding into new markets, and building robust sales teams. I’ve worked across general trade, modern trade, and e-commerce channels — mostly in North India. I’ve handled product launches, market penetration, and trade marketing, and I enjoy solving on-ground problems and building growth strategies that work.


Q2. Are there specific regions or segments where your products are gaining traction faster than expected?

Yes, definitely. I’ve seen strong and faster-than-expected growth in Tier 2 and Tier 3 towns, especially in North and East India. Consumers there are becoming more open to trying premium or healthier products, particularly in snacks and beverages. Improved retail infrastructure and digital influence are also helping brands like ours reach and engage with this audience better than before.


Q3. How is competitive intensity evolving in your category – are incumbents dominating, or are smaller, more agile players gaining market share?

Big players still dominate because of their reach and brand recognition, but there’s no doubt that smaller, newer brands are making their presence felt. Startups and D2C brands are moving quickly, innovating rapidly, and utilizing digital platforms to capture attention. In categories such as healthy snacking, energy drinks, and premium chocolates, some of these agile players are growing rapidly and presenting established brands with serious competition.


Q4. Which untapped or underpenetrated markets do you see as having high potential for future growth?

Markets in rural and semi-urban areas of UP, Bihar, Chhattisgarh, and Jharkhand have huge potential — especially for affordable health, wellness, and hygiene products. Additionally, the HORECA segment (hotels, restaurants, and cafes) is an area where I see growth opportunities, particularly for frozen foods and ready-to-use beverage solutions. With the right distribution model and pricing strategy, these markets can be long-term growth drivers.

 

Q5. How are you leveraging AI to analyze consumer behavior and anticipate demand trends in real-time?

Honestly, AI is still gaining momentum in the Indian FMCG sector. However, we utilize AI-enabled tools for tasks such as demand forecasting, inventory planning, and route optimization. We also track consumer behavior through POS data, social media trends, and digital tools to understand what’s working and plan better. It’s a mix of traditional experience and modern tools now.


Q6. According to you, do customers prioritize new, innovative products over established ones, or do they stick to familiar options with proven value?

It depends on the product category. In daily-use items like oils or staples, people usually stick to familiar, trusted brands. However, in categories such as beverages, chocolates, and snacks, many customers — especially the younger crowd — are open to trying new things. If a product is innovative, healthy, or offers something unique, it quickly captures attention. That’s where branding and packaging also play a key role.


Q7. If you were an investor looking at companies within the space, what critical question would you pose to their senior management?

I’d ask them, “How quickly can your company adapt to changing market trends and consumer needs, especially at the regional level?”
In today’s market, agility is crucial. Consumer behavior is changing rapidly, and companies must be flexible and responsive. If they can’t do that, it’s challenging to stay ahead — no matter how big the brand is.
 


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