PepsiCo, Unilever and multinational packaged goods corporations are shifting from China to India as a key expansion market, following an asymmetric recovery in China. While the Indian economy is the fastest developing among major emerging markets, those corporations are introducing new flavors and length variants to their products. to satisfy the varied tastes of India’s vast population and the untapped rural market.
According to Brian Jacobsen, lead economist at Annex Wealth Management, the shift from China to India is a strategic move to take advantage of demographic and economic trends.
“The last decade has been focused on promoting China, but the next decade will be focused on promoting India,” he told Reuters. “You have to go through where the demographic and economic situation takes you. »
Large consumer goods corporations operating in India are very futuristic about customer spending prospects in the coming quarters. All of these companies are hoping for higher government spending, a favorable monsoon season and a rebound in personal consumption to drive growth in the sector.
This is expected to increase the combined market share of the five largest multinational corporations: Coca-Cola, P.
Its overall market share in China is expected to decline to 4. 30% in 2023 from 4. 37% in 2022, according to the data.
“China has gone through a prolonged era of COVID
India’s urban and rural segments have seen growth, but the rural sector is doing a little better, he said.
Consumer goods corporations have also pumped cash into India with launches such as PepsiCo’s Kurkure Chaat Fills, Coca-Cola’s packaging innovations to extend the shelf life of its products, and Nestle’s plans to launch its premium Nespresso coffee logo by the end of the year.
As a result, Coca-Cola’s family penetration in India rose to 24% during the 12 months ending in June, PepsiCo’s to 12. 7%, Nestle’s to 6. 7% and Reckitt’s to about 3. 8%, according to Kantar data.
Mondelez International is partnering with cookie logo Lotus Biscoff to sell its products and plans to launch new Oreo package formats this month. The company recorded single-digit growth in the chocolate category in India in the second quarter.
Coca-Cola also recorded double-digit volume growth in India, while Unilever recorded a sequential improvement in the country. PepsiCo’s Africa, Middle East and South Asia region saw an uptick, and the company expects India to be the “big expansion space” there. .
The effects contrast with the moderate volume expansion in the region last year for most of those companies. On the other hand, China has noted weak demand.
Nestle, maker of KitKat, reported a decline in overall sales in the Greater China region in the recent quarter, saying overall confidence from the economy and customers there was “clearly weaker than expected. “
With the contribution of the agencies.