Weekly FMCG update: Coca-Cola’s growth and AI investments

Coca-Cola’s Thums Up, Sprite on track to hit USD 2-billion in sales
Coca-Cola's carbonated brands, Thums Up and Sprite, are on track to reach USD two-billion in sales in India, with Maaza already joining the billion-dollar club in 2024. Sundeep Bajoria, VP of Coca-Cola India, told leading business portals that the company continues to aim for other brands to hit similar milestones soon.

India's retail market set to reach Rs 190-lakh crore by 2034
India's retail market is projected to reach over Rs 190-lakh crore by 2034, with growth driven by diverse consumer behaviours and demographics. Retailers need to recognise regional opportunities to succeed in both ‘Bharat’ and ‘India’. The market grew from Rs 35-lakh crore in 2014 to Rs 82-lakh crore in 2024, with an 8.9% annual growth. A report by the Boston Consulting Group (BCG) and Retailers Association of India (RAI) highlights this consumption growth trajectory.

FMCG companies invest in AI for personalised products
According to leading business portals, FMCG companies are making significant investments in artificial intelligence throughout their value chain to provide consumers with personalised, customised products. They are also harnessing AI for digital advertising and to refine their product offerings according to consumer demands.

Non-alcoholic beverage market expands rapidly
The non-alcoholic beverage (NAB) market in India is growing, led by brands like Sobriety Sips and Sober, which cater to consumers seeking alcohol-free options. Despite challenges, the market is thriving, especially among Gen Z and millennials. Sobriety Sips, launched in 2023, has sold over 3,500 bottles and served 30,000+ cocktails at events. The brand has seen 40% of revenue from product sales, with many repeat customers. Other brands, like Coolberg and Sober, are also gaining traction in this expanding market.

Non-food FMCG sees steady growth
Non-food FMCG products, such as skin creams and floor cleaners, have seen steady growth due to offers, new formats, and launches, while food items have experienced slower volume growth due to inflation. Kantar Worldpanel data reveals a 5.7% increase in personal care volumes in the December quarter, while food and beverage growth slowed to 4.7%.

Overall, FMCG growth improved slightly from 4.1% to 4.6%, though still below last year's 6.3%. Personal care and home care performed well, while food and beverages lagged.