Smaller FMCG players in India growing faster than big FMCG companies: Report
This trend is mainly due to their quicker innovation and better product alignment with changing youth preferences.
The report stated "A quick comparison of growth trends across company sizes..... indicates that smaller FMCG players are outpacing larger peers".
The report mentioned that the ability of smaller companies to adapt faster and offer products that connect well with the younger generation has helped them take the lead.
A key reason behind this shift pointed out by the report is the rise of modern trade and e-commerce, including quick commerce, which now makes up around 20 per cent of the FMCG sector. These platforms have given new brands equal access to consumers, making the market more competitive.
On the other hand, large FMCG companies are seeing slower growth. One reason is the continuous price hikes they have made, which have affected the value-for-money perception among consumers.
Another challenge is their continued dependence on general trade, where traditional, broad-based products dominate. This has limited their ability to adapt to the fast-changing demands of consumers.
The report also said that while modern retail channels are growing well, there are still gaps in meeting the needs of new-age customers.
In particular, big supply chain players in e-commerce and modern trade are lagging behind quick commerce platforms in offering a wide variety of products, especially those from new and digital-first brands.
As more consumers shift to new platforms, the traditional strengths of large FMCG companies are weakening. These new platforms not only provide better consumer insights and engagement, but also push their own private label products.
Although the report highlighted that the growth outlook for the FMCG sector is improving, it also warned that established players must speed up their efforts, especially in product innovation, channel strategy, and staying relevant to today's consumers.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Times of Oman
10 hours ago
- Times of Oman
India adds 2.46 mn wireless subscribers in June 2025, led by urban growth
New Delhi: India's total wireless phone subscriber base, including mobile and 5G Fixed Wireless Access (FWA), rose to 1170.88 million at the end of June 2025, registering a monthly growth rate of 0.21 per cent, according to the latest data release by Telecom Regulatory Authority of India (TRAI). This marks an increase of 2.46 million subscribers from 1168.42 million recorded at the end of May 2025. The overall growth was driven primarily by urban areas, which saw an increase from 634.91 million to 637.87 million wireless subscribers -- a monthly growth rate of 0.47 per cent. In contrast, rural wireless subscriptions declined slightly from 533.51 million to 533.00 million, reflecting a -0.10 per cent drop, the TRAI said. The data shows that the wireless mobile segment alone added 2 million new subscribers during June 2025, rising from 1161.03 million in May to 1163.03 million in June -- a 0.17 per cent monthly growth rate. The TRAI data reveals that the urban mobile subscribers grew from 630.42 million to 633.14 million, a growth rate of 0.43 per cent, while rural mobile subscribers declined from 530.60 million to 529.88 million, marking a -0.14 per cent decline. India's overall wireless tele-density improved slightly from 82.63 per cent in May to 82.74 per cent in June. The urban wireless tele-density increased from 124.91 per cent to 125.31 per cent, while the rural tele-density fell from 58.90 per cent to 58.82 per cent. In the mobile segment specifically, the national wireless (mobile) tele-density rose from 82.10 per cent to 82.18 per cent. Urban mobile tele-density increased from 124.03 per cent to 124.38 per cent, while rural tele-density saw a drop from 58.58% to 58.48 per cent. As of June 30, 2025, private access service providers held a dominant 92.20 per cent share of the mobile wireless market. The public sector units (PSUs) -- BSNL and MTNL -- accounted for just 7.80 per cent. In terms of regional performance, all service areas except Assam, Mumbai, Punjab, Delhi, and Kolkata showed growth in mobile wireless subscriptions during June 2025. The number of 5G Fixed Wireless Access (FWA) subscribers rose from 7.40 million in May to 7.85 million in June 2025. Of these, 4.73 million were from urban areas and 3.12 million from rural India, reflecting the continued expansion of next-generation wireless internet services. As per the data, as of the end of June 2025, the urban areas accounted for 54.48 per cent of total wireless subscribers while rural areas made up 45.52 per cent.
Times of Oman
10 hours ago
- Times of Oman
GCCs to contribute 2% to India's GDP and create 2.8 mn jobs by 2030: Report
New Delhi: Global Capability Centres (GCCs) are set to contribute 2 per cent of India's GDP and generate 2.8 million jobs by 2030, and are emerging as a key growth and employment generator, according to a report by ACCA (the Association of Chartered Certified Accountants). GCCs, also known as Global In-house Centers (GICs) or Captive Centers, are fully owned and integrated hubs established by multinational corporations in talent-rich locations to build value and intellectual property. They leverage global talent pools and technological advancements to enhance organizational capabilities and drive business transformation. With over 1700 GCCs in 2023-24, which is expected to rise to over 2200 by 2030, India has become the prominent destination for the MNCs to set up their centres. Highlighting the favourable factors, the report said that a skilled workforce, favourable government policies, and improving infrastructure fuel the growth of GCCs in India. In Financial Year 2024, GCCs generated approximately USD 64.6 billion in export revenue: a 40 per cent increase from USD 46 billion in FY23. The report added that about 20,000 global leadership roles are projected to be based in India by 2030. The growth of GCCs in India is most prominent in Tier-1 cities, with Bengaluru leading the pack with 487 centers (29 per cent of India's total). Hyderabad follows closely with 273 GCCs (16 per cent), while the NCR region hosts 272 centers. Mumbai, Pune, and Chennai also contribute significantly, accounting for 12 per cent, 11 per cent, and 10 per cent of the national total, respectively. This is a reflection of India's effort to establish itself as the world leader in housing Global Capability Centers (GCCs), with currently nearly 1,700 centers, over 53 per cent of the total 3,200 globally. GCCs have evolved from cost-saving units to strategic hubs driving innovation, operational efficiency, and business growth. GCCs are strategically located in countries like India, offering access to diverse talent pools, robust ecosystems, and favorable business environments. The report highlights that the finance roles in GCCs have shifted from doing basic transaction-focused accounting to creating value for the organisation through process improvement and cost transformation initiatives. Opportunities abound in business partnering, procurement, reporting, planning, and analysis. While entry-level roles focus on data analytics, financial planning and analysis (FP&A), and compliance management, mid-level roles are shifting to process improvements and driving transformation, the report added.
Times of Oman
10 hours ago
- Times of Oman
CEO pay in India averaged Rs 7.2 crore in FY24, MNCs offer higher salaries than Indian firms: Report
New Delhi: The average compensation for Chief Executive Officers (CEOs) in India's listed companies touched Rs 7.2 crore, growing at an annual rate of 9 per cent over the last decade, according to a report by executive search firm Resource Bridge. The report observed that Chief Financial Officers (CFOs), by comparison, drew an average of Rs 2.3 crore, with compensation levels rising 1.7 times over the same period. The report indicates that CEO compensation has doubled in the last 10 years, while CFO pay has registered a significant, though relatively moderate, growth. "CEO's compensation more than doubled, from Rs 3.3 crore in FY15, to Rs 7.2 crore in FY24 - a 9 per cent CAGR growth over a 10-year period," the report finds. Interestingly, CEOs in the manufacturing sector continue to command some of the highest pay packages, while CFOs in service-led industries have emerged as top earners among their peers. A notable regional disparity also comes through in the data as CEOs and CFOs in northern India command the highest compensation across the country, while those based in the east consistently earn the east. The trend holds across sectors and company sizes. Ownership structure also plays a decisive role in executive compensation. Multinational corporations, according to the report, continue to outpace Indian-owned firms in terms of pay at the top levels. Additionally, companies that cross critical turnover thresholds of Rs 5,000 crore, Rs 50,000 crore and Rs 1 lakh crore show a sharp upward inflexion in executive pay. The observation also shows a stark difference in pay between multinational firms and Indian firms. According to the report, multinational companies (MNCs) in India pay their employees about 10-11 per cent more than similar-sized Indian companies. The CEO Compensation Report 2025 and CFO Compensation Report 2025 are the outcome of a three-month analysis of annual reports from nearly 1,000 listed companies, coupled with open-source financial data in the public domain.
