Indian consumer preferences are changing:People are spending more on chocolate, coffee and instant food

Indian consumer preferences are changing. On one hand, people are spending more on chocolate, coffee and instant food, while on the other hand, they are reducing cigarette consumption due to price increases. In rural markets, Campa is rapidly gaining ground on the strength of low prices, while in premium markets, Coke and Pepsi maintain their hold. Systematics Research’s ‘Channel Check’ report indicates that this year, price, convenience and ‘value for money’ are becoming the biggest bases for shopping. 7 Indicators – Chocolate sales in North India are growing 4 times faster compared to Western and Eastern states 1. Campa’s Strong Hold in the 10 Rupee Market – Campa’s dominance in the 10 rupee cold drink segment is increasing in rural and semi-urban areas. The demand for this brand is growing at 40-50% annually. Its market share has reached 6-7%. 2. Demand for Coke-Pepsi in Premium Market – The demand for Coca-Cola and Pepsi’s carbonated drinks is growing at a rate of 10-20% annually. Distributors are not feeling a major impact of Campa in the premium market this year. 3. Maggi Demand Strong, Sales Increased by 20% – The demand for noodle brand Maggi is increasing in the country. Its sales in North India are growing by 15-20%. Along with the traditional masala flavor, other variants are proving helpful in boosting sales. 4. Clear signs of increased spending on chocolates – Chocolate sales in North India are growing by 35-40% this year. In the Western and Eastern regions too, demand for chocolates is growing in double digits (more than 10%). According to the report, in many markets, chocolates are selling more than tea. 5. Coffee becomes new preference replacing tea – Coffee sales in Northern and Eastern India are growing at an annual rate of 15-20% and in Western India at a rate of 7-8%. This is a sign of consumers shifting from tea to coffee. 6. Cigarette consumption started declining as prices increased – After prices increased by 25-35% in February-March, demand for cigarettes has decreased by 5-6%. People have now started smoking fewer cigarettes to save money. In such a situation, companies are introducing shorter length cigarettes to keep prices low. 7. Counterfeit cigarette business reaches 25% – According to the report, the market for illegal and counterfeit cigarettes in the country has reached 20-25%. This business is getting additional growth due to sharp increase in prices.