After years of premium-focused launches, consumer goods makers in India are reviving entry-level products and smaller pack sizes to capture early signs of demand recovery in rural and lower-income markets. Companies including Emami and LG Electronics India are leading the pivot, introducing lower-priced offerings aimed at boosting volumes and expanding first-time customer adoption.
Industry executives say improving consumption trends—visible since December and supported by GST rate cuts on daily-use and discretionary items—are encouraging firms to sharpen their focus on affordability. Emami vice-chairman Mohan Goenka indicated the company will prioritise shampoo sachets and other small stock-keeping units across brands, including male grooming, to tap rural revival and target 8–9% growth in the coming quarters.
In consumer durables, LG Electronics India has re-entered the fixed-speed air-conditioner category after nearly a decade, launching models designed for first-time buyers. The move, according to sales and marketing co-head Sanjay Chitkara, is intended to drive volumes and widen the company’s customer base.
FMCG players are also expanding low-price packs across categories. Varun Beverages, the bottling partner of PepsiCo, recently introduced ₹10 beverage packs in select eastern markets, while Dabur rolled out multiple small-price drink packs ranging from ₹10 to ₹100. Meanwhile, Hindustan Unilever launched a ₹99 Surf Excel pack to attract first-time premium users, chief executive Priya Nair said. Colgate-Palmolive (India) has also introduced smaller packs within its premium whitening portfolio.
The renewed push toward affordability follows a prolonged slowdown in sales volumes caused first by the pandemic and later by inflation in essential goods, which had prompted companies to scale back entry-level launches. With macroeconomic indicators improving and GST reductions lowering product prices, executives now expect consumption growth to strengthen across both rural and urban markets in the coming quarters.