Jammu Tawi: NielsenIQ (NIQ), the world’s leading consumer intelligence company, has released its report titled “Elevating Value – Navigating Premiumization Trends in India,” which highlights the growing importance of premium brands across the FMCG and Tech & Durables industries.
The report indicates that premium brands in FMCG are consistently growing approximately twice as fast as their non-premium counterparts. Similar trends are observed in the Tech & Durables sector, driven by increasing income levels, urbanization, smartphone penetration, and a more aspirational consumer base.
Notably, smaller manufacturers or emerging brands in this space are registering faster growth in premium and luxury products compared to larger industry players.
“We are observing an increasing convergence of aspirational consumer preferences with higher disposable incomes, as well as the presence and access to premium products. This shift is driven by digital platforms, contributing to nearly half of the sales. Market mix, channel diversity, and new entrants will further drive the adoption of premiumization in the future.” said Roosevelt Dsouza, Commercial Head – India, NielsenIQ.
The report reveals that nearly half of all sales on digital platforms come from premium brands. Modern trade is also thriving, growing at twice the rate of traditional channels, with metro cities contributing significantly, while Tier 1 and 2 cities emerge as the fastest-growing markets, reflecting rising aspirations and greater availability of premium brands.
South Zone, organized retail channels, and metro cities are leading the charge in premiumization, though growth is accelerating across all regions.
NIQ’s report also notes that the growth in premium FMCG is more organic than price-driven, with consumption volumes rising at almost twice the pace of price increases. Home care and processed foods have seen particularly strong growth, with consumers gravitating towards premium brands in these categories.
This volume-led growth reflects a shift towards higher-quality products, especially in segments like personal care and home care, where wellness and health-focused products are gaining traction. South Zone has the highest proportion of premium brand sales, while West and East are growing the fastest.
According to NIQ Mid-Year Consumer Outlook Report, more than 70% urban Indian consumers are willing to pay a premium for a product that will last longer before it needs to be replaced. Indian consumers prioritize spending more on at-home experiences to save on outdoor dining and entertainment expenses.
