Embracing The Festive Surge: FMCG Brands Innovate For Consumer Needs

As the festive season unfolds in India, excitement fills the air. Homes are adorned with decorations, and the scent of traditional delicacies wafts through the streets. This vibrant time not only brings joy but also drives a significant surge in consumer demand, especially for Fast-Moving Consumer Goods (FMCG). With cultural celebrations and family gatherings in focus, many brands witness a considerable boost in sales.

Recent market research indicates that the festive period can account for as much as 30% to 40% of annual revenue for many companies, reflecting the deep-rooted connection between festivities and consumer spending. As shoppers stock up on essentials and indulgences alike, the FMCG sector gears up to meet this seasonal wave of enthusiasm. In recent years, this trend has evolved, with a notable shift towards healthier and more convenient food options, as families aim to celebrate without compromising their well-being.

The Organic World (TOW), part of the Bengaluru-based Nimida Group and India’s leading responsible retailer known for its health-focused, clean-label products, reports a notable sales uptick during this period. "During the festive season, we typically experience a sales increase of around 5-7 per cent. This growth reflects the increased demand for festive essentials, particularly healthier choices," shared Gaurav Manchanda, Founder & Director, The Organic World. “Our worry-free, wholesome curated groceries align perfectly with the festive spirit of giving and celebrating in a healthier way.”

When it comes to distribution channels, TOW has recognised the importance of quick commerce. "While our brick-and-mortar stores remain the primary sales drivers, we've noticed a significant uptick in q-commerce. Platforms like Instamart have seen strong demand for our WellBe snacks, which are free of maida and palm oil," he added. “Amazon's festival sales have also been crucial for our plant-powered cleaners, while our own website continues to contribute to steady growth as customers increasingly choose to shop directly with us.”

As for product demand, TOW highlights that sweets, dry fruits, snacks, and desi cow ghee are particularly sought after. "Gifting hampers are also a major sales driver, with consumers showing interest in both readymade and personalised options," he noted.

iD Fresh Foods also experiences a significant boost during the festive season, reporting sales increases ranging from 30 to 50 per cent. "This uptick can be attributed to heightened demand for fresh and convenient food options," explains Rajat Diwaker, India CEO of iD Fresh. “Our products, which emphasise homemade quality, empower consumers to prepare traditional dishes easily, thereby reducing reliance on external food sources.”

Quick commerce platforms play a vital role in iD Fresh's growth strategy. "Approximately one-third of our sales during the festive season come from platforms like Swiggy, Big Basket, and Instamart," stated Diwaker. "The convenience of quick delivery significantly enhances our sales, especially as consumers prioritize quality and convenience during this time.", he concludes.

MK Agrotech, parent company of leading edible oil brand, Sunpure, also sees a marked increase in sales during the festive months. "Our data indicates that the second half of the year, particularly from September to November, contributes significantly to our business—around 50 per cent of our total revenue during this period,” Sridhar Vaidyanathan, Chief Operating Officer, MK Agrotech shared.

The brand’s growth is further supported by e-commerce. "Platforms such as Flipkart, Amazon, Zepto, and Blinkit are driving most of our sales during this festive season," he added. In terms of product demand, MK Agrotech highlights regional preferences, with sunflower oil, groundnut oil, rice bran oil, and jaggery powder seeing the highest sales in Southern India.

As FMCG brands continue to adapt to changing consumer preferences, their strategies for catering to festive demand are evolving. By leveraging both traditional and digital channels, these brands are not only meeting consumer needs but also reinforcing their market positions during this critical period.