Premiumization is gaining ground in FMCG, i.e, the demand for costlier products across various categories is increasing, Mayank Shah said, adding that there has been a quantum shift in the consumption pattern of FMCG products.
Parle, the company famous for its globally consumed Parle-G biscuits, will not see a decline in the popularity of its Parle-G biscuits at the hand of premium cookies, said Mayank Shah, Category Head at Parle Products. Stating that the company’s Parle-G biscuit is a staple, he said that it will remain a household favourite despite the onslaught of premium products such as cookies and cream biscuits. “What we see panning out is that Parle-G is still consumed and the sales numbers are growing there; they will always be. It is a kind of staple and there are certain things which get into a staple. Glucose category biscuit still dominates,” Mayank Shah told Financial Express Online.
Premiumization is gaining ground in FMCG, i.e, the demand for costlier products across various categories is increasing, Mayank Shah said, adding that there has been a quantum shift in the consumption pattern of FMCG products. While two decades back, household used to consume only a single category product, they now are more willing to try out, and experiment in further categories, especially the higher end products.
“I am quoting a national survey here which was conducted annually. Most families … about two-thirds used to consume a single variety of biscuits which was invariably Glucose type. That was the solo consumption,” Mayank Shah told Financial Express Online. But today, that has changed and people are now consuming at least 3-4 categories of biscuits. This is majorly because of the rising income levels, affordability and betterment in the standards of living. However, that does not mean doom for its niche Parle-G.
The volumes of the consumption of various categories have grown up, of all the biscuits put together. “Given the premium variety, which is the relatively costlier variety, and the consumption of regular biscuits, both put together are giving a decent growth,” he added.
Parle has also borne the brunt of the ongoing consumer slowdown, but there are hopes of a quick revival with the promise of healthy monsoon and government efforts in tackling rural distress, Mayank Shah told Financial Express Online.