Price sensitivity and cost-saving strategies

Despite a slowdown in FMCG price growth, 87% of surveyed Indian shoppers believe food prices are still on the rise. To cope with this, shoppers are adopting cost-saving strategies such as buying smaller quantities or switching to lower-priced stores. This trend is prevalent across both food and non-food categories, including fresh foods, laundry, and dental care products. 

Increased store visits and promotional influence

Shoppers are making more frequent visits to grocery stores for both main and top-up shopping. Weekly main shopping trips surged from 12% in 2023 to 32% in 2024. Promotions play a crucial role in attracting shoppers, particularly in Modern Trade, where 40% of surveyed Indian shoppers switch stores for better deals. However, brand loyalty remains strong, with only a small percentage of shoppers switching brands due to promotions. 

Rising demand for innovation and premium private labels 

Indian shoppers are increasingly seeking innovative products in categories such as edible oils, dairy, and biscuits. Private labels are gaining popularity, with 67% of surveyed Indian shoppers preferring premium store brands, especially in food categories like carbonated soft drinks, staples, and chocolates. This shift reflects a growing preference for premium offerings in the grocery segment.

Multichannel shopping behavior and quick commerce

The rise of quick commerce and multichannel shopping is a defining trend in 2024. Shoppers are doubling their use of online platforms for both top-up and monthly shopping. Around 20% of surveyed offline shoppers are now turning to online stores, with metro city shoppers favoring online platforms for monthly purchases. Non-metro shoppers, on the other hand, focus on grocery top-ups. 

Sustainability and Conscious Consumerism

Shoppers are also demonstrating a growing interest in energy-efficient and locally produced products. Both Gen Z and Boomers are prioritizing sustainable and domestically made goods, highlighting a broader shift toward conscious consumerism in India. Retailers need to cater to these values to stay relevant.

Adapting to a complex retail environment

In summary, modern shoppers are adapting to rising prices through strategic behaviors, favoring promotions and store selection while seeking innovation and premium options. Retailers must adapt to the complex needs of modern shoppers. From leveraging promotions and embracing innovation to expanding multichannel strategies, brands must stay agile to succeed in India’s fast-changing grocery market.