Over 50% Of Indian Households Embrace Soft Drinks As Summer Heats Up: Report

Over the last two years, the average household has increased its consumption of bottled soft drinks by 250 ml, reflecting a notable shift in consumer preferences towards these beverages

The report states, "With the intensifying summer, the category is likely to continue its growth this year, too"

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The average consumption of bottled soft drinks in Indian households has risen steadily over the past two years, surpassing an annual penetration rate of 50 per cent in FY24, according to a recent report by Kantar FMCG Pulse. The report further indicates that this trend is anticipated to grow, particularly with the onset of the more intense summer season.

Over the last two years, the average household has increased its consumption of bottled soft drinks by 250 ml, reflecting a notable shift in consumer preferences towards these beverages.

Furthermore, according to the report, fabric softeners, traditionally viewed as a premium laundry product, are now found in one out of every four households across the country.

In addition, washing liquids, a premium laundry product launched by leading FMCG companies, exceeded the 100,000-tonne milestone in FY24. These trends were highlighted as "record-breaking" in the report.

The bottled soft drink category showed significant growth with a 41 per cent increase in household penetration in MAT (moving annual total) in March 2023 and continued to expand, adding more households with a 19 per cent growth in MAT in March 2024.

The report states, "With the intensifying summer, the category is likely to continue its growth this year, too."

Regarding consumption, the report indicated that consumers now purchase FMCG products 156 times a year, either online or offline, averaging once every 56 hours. However, it also noted a decrease in the average basket value, as shoppers are buying fewer items per transaction compared to previous purchasing habits.

"The frequency and the pack trends indicate that shoppers are no longer reducing their pack sizes, but holding on to the ones they are buying. In other words, we are very likely at the juncture where we see shoppers buying slightly bigger packs from now on," it reads.

Discretionary premium-end categories like washing liquids and indulgent products such as bottled soft drinks have shown exceptional performance. Despite this, groceries remain the largest household expenditure, comprising more than 24 per cent of total quarterly expenses, according to the report. 

Additionally, the report underscored that while inflation may have moderated to manageable levels, its impact continues to be felt by consumers.

"The worst of inflation is behind us, however, there are pockets of the market that are still under some stress...the shopper is looking at the future with great optimism, even those who are under stress, and this optimism has been the flag bearer of the Indian consumption story for long now," the report highlights.