Volume share of unbranded FMCG in India 2016, by type

The volume share of unbranded products in the FMCG sector in India was highest for chips with as much as 52 percent in 2016. Other salty snacks had a similar share of unbranded products in their portfolio.

 The Indian FMCG sector

Along with rising consumer spending, the FMCG sector is growing. Food retail, in particular, contributed to the revenue from sales of fast-moving- consumer goods. Although there was an almost equal share of FMCG retail between urban and rural areas, the latter drives the FMCG market growth. While most fast-moving- consumer goods are sold via traditional channels, the share of online sales has increased. This coincided with an expanding share of private labels in online retail.

 Branding in India

A high share of private label products across grocery retailers reveals that unbranded retail is characteristic of food retail. Accordingly, leading brands in the retail of chips like the PepsiCo-India-owned Lays lose out on market share, as customers opt for unbranded alternatives. Increasing trust and an eagerness to try new products have been the main triggers of this development. This is also reflected in the decreasing volume share of branded chips.