NielsenIQ (NIQ), has released its latest Shopper Trends Report,whichsheds light on the key forces reshaping the retail landscapein the FMCG sector. With economic challenges and shifting preferences, shoppers are adapting quickly to rising food prices, new shopping channels, and product category innovations. 

Commenting on the emerging shopper trends, Mitesh Dabrai, Executive Director – Consumer & Marketing Insights at NIQ in India stated,"Shoppers today are more discerning, price-conscious, and channel-agnostic than ever before. The doubling of quick commerce usage signals an urgent need for FMCG brands to prioritize convenience and speed, while simultaneously addressing value perceptions.”  

“With 87% of shoppers feeling the impact of rising food prices, businesses must focus on strategic pricing and promotions to maintain shopper loyalty. The growing interest in premium private labels, with 67% of shoppers seeking out these options, presents a unique opportunity for brands to elevate their offerings. FMCG leaders need to lean into innovation and multi-channel strategies to stay competitive and meet the evolving expectations of today’s shopper," Mitesh added.  

Indian Shoppers Embrace Quick Commerce 

Quick commerce has indeed emerged as a pivotal growth driver in grocery shopping. According to the NIQ Shopper Trends 2024 Report, 31% of Indian shoppers now rely on quick commerce for their main grocery needs, while 39% use it for top-up purchases. Among the popular categories, 42% of shoppers use quick commerce for Ready-to-Eat meals, and 45% for Salty Snacks.  

Changing Channel Dynamics: More Visits, More Opportunities 

Shopping frequency has increased across channels, with more frequent visits to both Modern Trade and online platforms. The report notes a surge in grocery store visits for main shopping with32% of Indian shoppers visiting weekly in 2024 (vs 12% in 2023) and 24% for top-up shopping (vs 18% in 2023). 

Increasingly, shoppers are using online platforms not only for fill-in shopping but also for their monthly purchases, with both types of shopping seeing an uptick across all trade types.E-commerce platforms are also becoming a go-to for essential staples, with 60% of shoppers in India turning to online platforms for these purchases.  

Notably, promotions continue to influence store and brand choices, with 40% of Modern Trade shoppers switching stores based on promotional offers.Impulse buying is significantly influenced by Modern Trade, with 47% of shoppers showing a preference, and Online channels, which attract 35% of shoppers. 

The Rise of Multichannel Shopping Behavior 

As shoppers increasingly embrace multichannel shopping, 20% of offline shoppers also turn to online stores for their grocery needs. This behavior is particularly evident in metropolitan areas, where online platforms are used more for main shopping.  

Non-metro shoppers are leaning towards using online stores for top-ups. The report indicates a noticeable increase in quick commerce visits, especially for urgent, immediate needs. 

Price Sensitivity and Shopper Strategies 

With 87% of shoppers feeling the impact of rising food prices, shoppers are adopting various strategies to manage their budgets. Many are purchasing smaller quantities or shifting to lower-priced stores. Staples, fresh foods, and snacks are among the categories most affected by price sensitivity. Even in non-food categories such as laundry and dental care products, shoppers are adopting similar cost-saving behaviors. 

Private Label Growth and Product Innovation 

The report also points to a growing interest in premium private labels, with 67% of shoppers seeking out these options, particularly in categories like carbonated soft drinks, staples, and biscuits. Additionally, 1 in 2 Gen X shoppers are looking for new product innovations, especially in categories like edible oils and dairy, driven by health trends and sustainability concerns. 

Sustainability and Local Manufacturing Prioritization 

Shoppers, particularly Gen Z and Boomers, are increasingly prioritizing eco-friendly and locally manufactured products. This trend reflects a broader shopper movement towards sustainability, with many opting for energy-efficient products and domestic brands. 

Looking Ahead: Opportunities for FMCG Brands 

The 2024 NIQ Shopper Trends Report emphasizes the importance of convenience, innovation, and value in capturing shopper loyalty. While price sensitivity and promotions remain important, the rise of quick commerce, multichannel shopping, and a growing interest in premium private labels signal new growth opportunities for FMCG brands. Retailers and manufacturers must continue adapting to these shifts by offering innovative, convenient solutions to meet evolving shopper expectations.