Key Points
The phenomenon of downtrading, in which consumers switch from purchasing larger product sizes to smaller ones due to financial difficulties or rising prices, has intensified in the FMCG sector...
According to data from the retail intelligence platform Bizom, smaller product sizes have experienced a more rapid growth rate compared to medium or high-priced alternatives across most FMCG categories, TOI has reported..
In the past three quarters, soaps, detergents and tea have become cheaper due to falling commodity prices, allowing hundreds of small regional brands to nibble into Hindustan Unilever's market share in budget categories, ET has reported recently..
Regional FMCG brands are scaling up rapidly to give even tougher competition to national brands after outpacing them to post double-digit sales growth in the past two quarters with inflation cooling off, ET reported in September..
The growth of smaller brands is seen as a result of lowering inflation and waning of the pandemic when they could not compete with the FMCG giants due to rising raw material prices and supply problems..
