FMCG will continue to grow but there will be a shift from mass to niche brands: Anand Ramanathan, Deloitte India

economictimes.indiatimes.com:

Anand Ramanathan, Partner, Consumer Industry Leader, Consulting, Deloitte India, says “we are seeing green shoots in rural India and retail today in India is still about two-thirds of it is food and groceries. So, food will be one of those big categories. But beyond that, while the overall retail market is expected to double by 2030, we have some categories like luxury, for example, which will grow at about 5x. We will have e-commerce grow at about 4x compared to the overall market at about 2x and hence these will be categories or segments that will grow faster than the rest of the market.”


One of the key points which caught my attention from your latest write-up is that upcoming elections could actually inject a lot more liquidity in the hands of people, especially in tier II, tier III and the rural side and that could boost sales of consumer items. What category of consumption are we talking about here and what is your hypothesis?
Anand Ramanathan: Yes, indeed, we will see high retail growth in 2024. We expect it to be about 10% to 13% and this is largely driven by an uptick in rural demand too. Urban demand had picked up, but we are seeing green shoots in rural India and retail today in India is still about two-thirds of it is food and groceries. So, food will be one of those big categories.

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But beyond that, if I were to look at other categories, while the overall retail market is expected to double by 2030, we have some categories like luxury, for example, which