Indians put booze over bath

NEW DELHI: Indian consumers spend more on spirits and beer than they do on laundry and bath products, with oral care products lagging even further behind. A comparison of per capita consumption of FMCG products in the BRIC (Brazil, Russia, India and China) nations by JP Morgan shows that while India’s per capita consumption of bath products is higher than China, the country trails other emerging markets in overall FMCG consumption.

Globally, the highest FMCG product consumption is witnessed in case of packaged food and the BRIC countries are no exception. In comparison to their Brazilian, Chinese and Russian counterparts however, Indian consumers spend an abysmally small portion of their income on packaged foods.

With rising consumer spends, FMCG companies expect India’s per capita consumption of FMCG products, currently the lowest among similar markets, to rise significantly. “With the economy buoyant and consumer spending power on the rise, the FMCG share of the consumer’s wallet is expected to increase significantly.

The Indian market has a strong potential for further penetration and increased consumption and opportunity is opening up across the pyramid of consumers from top to bottom,” says an HLL spokesperson.

In terms of BRIC nations’ FMCG consumption, next to packaged food are spirits for Russia, China and India. For the Brazilians, however, it is haircare products which are consumed next to packaged food and ahead of beer.

Interestingly, oral care comes low on the list of consumer spends in these four emerging markets, with Russian consumers spending the least on oral care out of the ten FMCG categories. Chinese consumers, however, spend more on their toothpastes and toothbrush than their soaps and shower gels.

While bath products is the only FMCG category where India’s consumption is more than another BRIC country — China, Indian consumers also use more bath products than skincare and haircare products, unlike other developing markets.

Consumption of FMCG in general and personal care in particular will see a multi-fold increase with the growth of organized retail and sachet-like experiments.

“A wider distribution network with higher rural penetration and lower priced private labels offered by the likes of Reliance and Wal-Mart will boost FMCG consumption,” says retail consultancy Technopak Advisors’ chairman Arvind Singhal.