2022, a year that brought in the new normal that withstood the test of time with industries booming and numerous sectors witnessing major growth is approaching its end. According to the 32nd edition of the retail business survey conducted by the Retailers Association of India (RAI), retail businesses across India reported a 21 percent jump in sales in September 2022 compared to September 2019 or pre-pandemic levels.
Moreover, the FMCG market in India has witnessed significant growth this year. According to an IBEF report, the sector witnessed a growing FDI inflow amounting to a cumulative value of $20.11 billion from 2000-2022, out of which food processing accounted for a majority stake of 55.2 percent. In addition to this, the Centre’s production-linked incentive scheme has given companies an outlay of an additional $1.42 billion. Thus, the market is vast and quite expansive.
The growth spurt can be witnessed across a wide spectrum of Food and Beverage brands, here is a look at how these brands made their way through 2022 and are moving forward henceforth.
Reiterating the same, Manish Bandlish, Managing Director, Mother Dairy Fruit, and Vegetable Pvt. Ltd said, “This year we observed a phenomenal demand for milk and milk products across regions and for the entire year. Notably, ice creams saw a remarkable revival in the first half of the year, whereas the demand for various dairy products continued in the second half of the year, even after the festivities. The consumption trend remained persistent, with continued in-home consumption, enhanced out-of-home consumption, and preference for packaged foods going strong.”
He further added, “Apart from the consumer segment, the demand from the institutional segment also made a comeback. The year saw new products, markets, and experiences, both for the business as well as the consumers – we introduced a range of new products to expand our value-added dairy products portfolio in order to meet the ever-evolving needs of our consumers.”
On account of better demand this year, Mother Dairy anticipates robust growth over the last fiscal year and will continue to bring out the best-in-class products to entice consumption while creating new avenues for its farmers.
In 2022, PepsiCo India witnessed a seismic shift in omnichannel channel growth with sales significantly outpacing in-store growth across metro cities. In-home consumption remained strong while out-of-home and on-the-go consumption steadily rose in the post covid era.
Its product portfolio in foods and beverages are in high demand and the digital consumer category continues to expand with brands building value proposition in a socially networked world thereby significantly driving growth for PepsiCo India. PepsiCo India’s core focus continued to cater to the evolving consumer needs and provide them with positive choices by introducing new flavors and launching new products like Pepsi Black, Quaker Oats Muesli, and Lays Gourmet among others.
The company also continues to witness strong demand from rural India for some time now, for both our foods and beverage products. This is largely due to labor migration, increased digital penetration, and enhanced distribution of its portfolio and rural India switching from unbranded loose products to branded ones.
“As we move forward, the strategy will be to focus on product and consumer experience innovation, prioritizing profitable channels, diligently managing SKUs, and driving execution & productivity across the system. This decade is a decade of India and we are focused on building capabilities, availability, and expanding penetration while driving category innovation. With consumers making conscious choices, they are looking for brands that are contributing to the environment at large along with providing affordable products. Thus, our efforts on giving back to the society through focused initiatives as part of our ‘Winning with pep+’ philosophy will be heightened,” commented Ahmed ElSheikh, President, PepsiCo India.
2022 was a milestone year for the brand as it launched its first-ever brand campaign – ‘Yes Ka Time Aa Gaya’ featuring investor and brand ambassador Anushka Sharma. The brand states 2023 is going to be an exciting year as it is the UN-designated International Year of Millets. Additionally, with the Government's thrust on export, Wholsum Foods is confident that the market for millet-based products will only grow exponentially.
“2023 will also have us expand our international presence significantly. Slurrp Farm is already present in 15+ countries globally including the USA, Europe, UAE, and Singapore. We have seen stellar growth in these markets, and are committed to growing our presence in each of them by at least 30-40 percent in the next 12 months. With the launch of Millé, there is immense scope for us to build awareness and generate demand for millet-based products,” commented Meghana Narayan and Shauravi Malik, Co-Founders, Slurrp Farm.
Some of the main highlights of the progress VAHDAM made as a team include increased offline retail presence with VAHDAM now a part of over 2000 stores globally. Moreover, it was a part of the Oscar and Emmy Goody Bag, in 2022 and a part of the Koffee with Karan Hamper, Season 7.
The brand today serves over 4 million consumers, globally and launched the world’s first Turmeric Tea to popularize and raise awareness of the golden superfood. It also partnered with Nicole Scherzinger, an American singer-songwriter, and won over 20+ awards, globally.
The total outreach of TEAch Me, VAHDAM’s flagship CSR initiative today is over 16,000 children in over 90 tea estates and schools. On the sustainability front, in addition to being carbon-neutral and plastic-neutral, VAHDAM shifted from food-grade Nylon to plant-based pyramid tea bags
“VAHDAM plans to scale up the business in the next few years by increasing its Omni-channel presence in key markets, strengthening its presence in existing geographies, and expanding Indian holistic wellness in new categories," said Bala Sarda, Founder, VAHDAM India
Being a caffeine innovation brand, Rage Coffee has always been associated with the curation of a product range that supersedes the segment in superiority and originality; it has always been ahead of the conventional curve. The company’s popularity is driven by a strong community of customers who swear by the products offered by the company. The brand has swiftly scaled up to new territories and has launched innovative plant-based coffee products since its inception in 2018.
“As of now, Indian coffee is already heralded as one of the finest brews worldwide. The industry is only expected to ride this high-tide forward for the coming years with more focus on sustainable operations, consumer-centric design, and enhancing the quality of yields by embracing a combination of new technologies and advanced farming techniques,” stated Bharat Sethi, Founder and CEO, Rage Coffee.
He further added, “The last year has been very positive for us which also indicates a rising consumer trend towards innovative caffeine products. We are ending the year with a robust growth of 400 percent YoY and also with the launch of a new product category called Rage snacks including Coffee Peanut Bars, Caffeine Almond Bars, and Chocolate Oats Cookies. We aim to continually unlock growth avenues going forward.”
In 2022, the brand listed its products on all the major marketplaces and quick commerce platforms in India that sell grocery products and became the online market leader and Amazon's choice in the premium water category in the country on Amazon.in with the highest purchases and reviews on the platform in our category.
Moreover, it started global e-commerce in the USA with Amazon.com and Walmart.com and in the UAE with Amazon.ae and Noon.com
Therefore, the year made Evocus the most searched multifunctional water brand on Google in India, owing to its unique product and marketing strategies, it is now the most searched water in its category ranging from 100k to 1 million monthly searches on google in India.
“For 2023, we will be launching and selling Evocus black alkaline water online in France, Germany, the UK, Spain, Italy, Australia, Japan, and Saudi Arabia via our global E-commerce website and local marketplaces,” said Zulkarnain Shaikh, Head of Digital Marketing, Global E-Commerce, and PR.
To make this possible the brand is in the process of creating an infrastructure that supports seamless worldwide delivery. The infrastructure includes a multi-lingual website, local warehouses, shipping partners, OMS, WMS, and LMS, and international payment gateways.
The brand states to have an exhilarating year, raising $10 million in Series B from HUL and Fireside Ventures adding to the extremely eventful year.
Along with the Disney tie-up, also came the launch of other innovative categories like Slow Time release capsules, Fiber, Superfood Plant Protein, and the expansion of its Marine Collagen and melts collection.
“We can’t wait to build on this success in 2023 as we aim to put the brand on the global map. Our goal is to launch and extend the product categories, build a senior management team, and strengthen the expert channel network, along with strengthening R&D as well as achieve high retention numbers for growth," said Saurabh Kapoor, Co-Founder and CBO, Wellbeing Nutrition.
The year 2022 was favorable to the poultry sector as a whole. In India, the poultry industry produces and consumes 600 billion eggs and 6 million tonnes of chicken meat every year.
The brand noticed that the consumption pattern of consumers has slowly shifted from food security to nutritional security with an increased awareness of protein consumption. This year, chicken continued to remain the preferred choice of meat amongst consumers despite having the same protein value as fish and mutton, resulting in an overall boost in the Agro-food industry.
The increase in Per Capita income has been a major influence in increased meat purchases across regions. More hotels, restaurants, and cafes (HORECA) have developed leading to heightened demand for meat products. With these factors playing a key role, the sector has witnessed poultry companies operating at near-full capacity in 2022.
“Post the pandemic, we have also seen a steadfast acceptance and preference towards processed meat opening up more avenues for growth in this sector. Safety and Hygiene play a key role and the consumer's global exposure has influenced the consumption of processed meat,” said B. Soundararajan, Chairman, Suguna Group.
He added, “All in all, we anticipate considerable breakthroughs in the poultry industry, as well as increased consumption and adaptability of processed meat in India by 2023.”
Post its funding in March 2022 by Elara India, the brand moved toward the expansion of its product portfolio, launching new cities, investing in tech innovations, and omnichannel presence.
Launching its RTE-RTC range of products, including its spreads and deli meats, PescaLive, the world's first virtual live market for fresh seafood and meat, was launched in June. The tech property reinforces our commitment and passion for freshness and quality.
2023 will continue to be action-packed with a more vast bouquet of its RTCs hitting the market, while the brand aims to expand geographically and have its upgraded tech stack launch early next year.
“Overall, we are already seeing 25 percent month-on-month growth, triggered by new product categories, geographical expansion, and multiple platforms, including our own platforms, Quick Commerce, HoReCa, and other omnichannel,” Sangram Sawant, Founder, Pescafresh.
Talking about future trends, at Pescafresh, the brand will continue to invest in quality, research, and technology to amplify its position in the market.
The Baker's Dozen
Keeping up with the trend, The Baker’s Dozen too collaborated with influencers across India to amplify its product range and gain maximum traffic on social media. Changing its narrative from a bootstrapped brand to a funded brand, it announced it's first fundraise of $5 million with Fireside Ventures which accelerated its growth and helped enter the international market with Dubai and Qatar.
With the international expansion, it further opened 3 new stores across Chennai and Delhi to expand its reach in Tier I and II cities, also launching its products in Goa through Magsons and expanding the product portfolio.
Having grown 5X in the last two years, fast becoming the preferred national bakery brand across e-commerce and Q-commerce marketplaces, servicing over 3 lakh orders month on month.
“Our mission for the next year is to become the default bakery partner for a household across all meals starting from breakfast to post-dinner cravings. With the aim of reaching Rs 200 crore ARR by FY24, and making The Baker’s Dozen India’s fastest-growing D2C bakery brand, we are looking at expanding to 100 brand stores and 1000 retail touchpoints across multiple geographies in the country,” commented Sneh Jain, Co-Founder and Managing Director, The Baker's Dozen.
In the year 2022, Pansari Group witnessed 27 percent growth, talking about innovation it introduced a new product line Indimix - a range of pre-mix products that are easy to cook and help the customers to eat healthy in the comfort of their homes while indulging their taste buds.
“We have recently entered the HORECA segment and cater to all the dry seasoning and masalas for this segment but next in line is our plan to launch gravies and syrups. The Pansari group is currently considering expanding its business in the western and southern regions of India. In no time, our brand will have a well-established supply chain network for our retail operations across India. Our company is expanding very rapidly and our goal is to expand our business globally,” said Shammi Agarwal, Director, Pansari Group.
In recent years we have seen that the FMCG sector is moving towards more online presence and brands are making more region-specific offerings and this trend is going to stay. Even though offline shopping will be available customers will still prefer online shopping as there will be more choices available to select from.
Moreover, people are now concerned about what they buy and what they consume. Ready-to-consume food segments have suddenly witnessed a swelling demand in the last couple of years. People now look forward to products that are accessible and easy to prepare. ‘Good for you’ indulgence will be a key bakery habit developing in the future.