Sachetisation Remains Critical For Unlocking Rural Demand, Says Report
Companies Consumer FMCG

Sachetisation Remains Critical For Unlocking Rural Demand, Says Report

The report notes that compact formats offer affordability and encourage first-time trials across categories such as personal care, food and household care

Emphasising that price-sensitive rural and semi-urban India relies on sachets and small packs as a core access strategy, a report has highlighted that sachetisation remains critical for unlocking rural demand, enhancing brand reach and maintaining competitiveness in India’s value-driven markets.

A report by Deloitte-Federation of Indian Chambers of Commerce and Industry (Ficci) noted that these compact formats offer affordability and encourage first-time trials across categories such as personal care, food and household care.

“In Q4 2024, rural FMCG volumes grew 9.9 per cent, with small packs expanding at twice the rate of large packs. Smaller FMCG companies are driving this trend effectively, growing volumes by 11.9 per cent in Q1 2025,” the report explained.

While unit growth dipped in Q2 and Q3 of 2024, the sector rebounded sharply in Q4 2024 and Q1 2025, reflecting the renewed traction of small-pack strategies during festive and pre-summer consumption cycles. Notably, unit growth has outpaced volume growth in 2025 Q1, underscoring that more units of smaller sizes are being purchased, a clear indicator of sachet-driven buying behaviour, the report added.

The report explained that this trend is especially pronounced in categories such as shampoos, detergents, biscuits and instant foods, where sachets and mini-packs dominate shelf space in kirana stores. Brands that have adapted to this shift are better able to penetrate rural markets, build habit loops and drive repeat consumption, it said.

With access to digital tools and a growing understanding of personal needs, consumers increasingly seek products designed just for them, it emphasised, while adding that this is particularly evident in categories such as skincare, nutrition and supplements, where users are interested in solutions customised to their skin type, age group, or lifestyle

Leave a Reply

Discover more from BW Retail World

Subscribe now to keep reading and get access to the full archive.

Continue reading