Fast-moving consumer goods (FMCG) companies are shifting their focus to the growing middle class, emphasizing innovation and premium products to drive growth. Brands like Dabur and Nestle are targeting this segment to expand their market share and increase margins.
Hindustan Unilever has relaunched its Vim and Ponds brands to match evolving consumer trends, while Parle Products is pushing low-unit packs of premium products to encourage trial and adoption. The middle class’s increasing disposable incomes and growing aspiration for better products are driving this trend.
According to Akshay D’souza, chief of growth and insights at Bizom, “the middle-class segment is key for companies to drive consumption at scale for high-margin categories.” The segment’s willingness to try new products and seek better choices is nudging companies to innovate and premiumize.
The growth of e-commerce has also enabled better brand discovery by consumers, broadening their shift to branded products. FMCG companies are expected to widen their product portfolios and focus on regionalization to cater to localized preferences.
Key Highlights:
- FMCG companies are targeting the growing middle class with premium products.
- Brands like Dabur and Nestle are driving innovation and premiumization.
- Hindustan Unilever has relaunched Vim and Ponds to match evolving trends.
- Parle Products is pushing low-unit packs of premium products.
- E-commerce expansion is enabling better brand discovery and adoption.