FMCG sector is is now coming back big putting the worst behind and looking forward to the New Year with hopefulness and confidence. The champion products of pandemic like food, personal care items, especially hand sanitizers and disinfectants — the industry has shown positive growth.
The sector is more confident going into 2021, having now mostly adopted digital medium for distribution and realigned product portfolio, such as ayurvedic preventive healthcare items tailored for the new normal. The pandemic also made the FMCG sector carve opportunities out of the crisis.
PepsiCo focus areas remain on prioritizing profitable channels, diligently managing SKUs (Stock-Keeping Units), further investing in digitization and driving execution to meet the ever-evolving consumer demand.
HUL will focus on competitive volume-led growth, absolute profit and cash delivery, said the spokesperson, adding that the company remains committed to “further strengthen its portfolio of brands through bigger and better innovations and unblinking defence of a strong market leadership position.
As the coronavirus pandemic brought to the fore the need for preventive healthcare, FMCG companies also focused on meeting heightened demand for ayurvedic products.
Ayurveda-based preventive healthcare and hygiene — both personal and household — are gaining prominence in the consumer mind space. People are now more inclined to prophylactic health remedies, especially immunity-boosting products. This trend would sustain, going forward. This pandemic has helped to create faith in Ayurveda and Yoga among the section which does not believe in it. This is an opportunity for us as people are now having faith in Ayurveda and traditional system.
One of the biggest outcomes of the COVID-19 pandemic is the acceleration in the adoption of digital medium by FMCG companies, not just for distribution but also for marketing and advertising. And another significant feature of this lockdown and post lockdown scenario is a tectonic shift towards online and e-commerce, a trend that is here to stay.
In these unprecedented times of the coronavirus pandemic, rural India has offered that much-needed beacon of hope. Also now another development that is working in favor of the FMCG sector going forward is the recovery of the urban market.
Going forward, the packaged food market in India which is about USD 35 billion is expected to be about USD 70 billion by 2025. This is possible with increasing penetration, increasing proclivity of consumers towards more credible, more transparent, trustworthy, and scientifically better modulated brands.
Now with the new normal companies would look up for more automation in factories or in distribution and this kind of challenge has really taught them to be future-ready for such challenges.