The latest Kantar FMCG pulse report reveals that more than half of Indian households have significantly increased their consumption of bottled soft drinks over the past two years. The annual penetration of these beverages exceeded 50% in the fiscal year 2024, with the trend likely to continue its upward trajectory as temperatures rise.
The report highlights a notable expansion in the consumption of bottled soft drinks, with the average household increasing its intake by 250 ml in the last two years. The category experienced a massive 41% growth in household reach in the moving annual total (MAT) up to March 2023 and continued to grow by 19% in the following year. As the summer heats up, this growth is expected to persist.
Consumers are now purchasing FMCG products more frequently, averaging 156 shopping trips annually, which translates to a shopping activity every 56 hours. Despite this increased frequency, the average value of shopping baskets has decreased, suggesting a shift towards maintaining existing pack sizes rather than buying in larger quantities. The report indicates a potential trend towards consumers opting for slightly larger packs in the near future.
Groceries remain the largest expenditure for households, accounting for over 24% of quarterly expenses. The report acknowledges that while inflation has eased, some segments of the market still experience economic stress. Nevertheless, consumer optimism remains strong, buoying the overall consumption narrative in India.
With the intensifying heat, the demand for bottled soft drinks is anticipated to rise further. The report underscores the resilience of the Indian consumer market, driven by a combination of increasing product penetration and positive consumer sentiment despite economic challenges.