Hello, I am Priyanka Salve, writing to you from Singapore.
Welcome to the latest version of “inside india“ – Your one-stop destination for stories and developments from the world’s fastest growing major economy.
Rising incomes and large population base make India a prime market for global consumer-focused companies. But now, celebrity endorsement and wide distribution are not enough to attract customers. Viral social media videos are influencing consumer preferences – and brands are responding.
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big story
Social media influencers are sparking massive change in India’s packaged food and beverages sector as they urge consumers to read labels, pushing big brands to create healthier products or risk being replaced by new entrants.
One of the world’s largest packaged food and beverage companies, PepsiCoThe latest to respond to changing customer preferences.
“Today, more than 50% of our beverage portfolio in India includes low- to no-sugar options,” said Nitin Bhandari, vice president and general manager of beverages, PepsiCo India. He said the company aims to “over time include low- and no-sugar options in 90% of our beverages portfolio in India.”
Bhandari told CNBC in an email that PepsiCo gathers consumer insights through engagement forums, social media, as well as its WhatsApp-based consumer loyalty platform, PepGenie.
India’s per capita income is expected to increase in the next five years grow at the highest rate in the top five According to Bain & Company, emerging markets for consumer products include China, Brazil, Mexico and Russia, making it a priority for global consumer products companies.
Global companies already dominate the world fastest growing major The report said the consumer market spans 20 product categories ranging from soft drinks and spirits to salty snacks, detergents and diapers.
However, the opportunities in the Indian market come with pressure to build strategies based on consumer preferences. And social media has emerged as a major platform for public advocacy over the years, increasing awareness about food safety and mislabeling in India.
Shamik Kumar, a veteran food safety expert who has worked with multinational companies in India, said celebrity endorsement-driven brand trust has shifted to “community-verified trust” due to social media influencers.
New Delhi, India – 2025/09/27: The stall of Dabur Limited, an Indian multinational consumer goods company that manufactures ayurvedic products as well as other fast-moving consumer goods (FMCG), is seen during the exhibition.
Sopa Images | LightRocket | getty images
Social media influencer Rewant Himatsingka, known as Food Farmer on social media, has millions of subscribers and has faced backlash from consumer companies, saying his content encourages people to read labels and, as a result, companies are making better quality products.
Over the years, many brands including Mondelez-Owned by Bournvita and Dabur’s real fruit juiceFollowing a viral video on social media, it has faced criticism for high sugar content.
According to local media reports, Himatsingka had to remove its viral Bournvita clip after a growing public outcry, but the company reduced the sugar content in its offering.
Dabur told CNBC that it has been on track to reduce sugar in its juice offerings since 2018 and has committed to reducing sugar by 21% by 2023.
“We are currently working on an additional 20% sugar reduction across the Real Core beverage range,” a company spokesperson said in an email. The company is also developing low-sugar and zero-sugar variants to cater to the needs of consumers who are conscious of their sugar intake.
Mondelez did not respond to CNBC’s request for comment.
The Indian Food Safety Regulator has also issued a notice and banned malt based beverages Such as Bournvita using “health drink” branding and food companies making “100% fruit juice” claims for beverages with no added sugar.
Just last month, several videos on social media pointed out the sugar content in mango-based drinks, including Coca-Cola’s Maaza. high sugar content Beverages are also reaching the Indian Parliament.
For a country of about 100 million people suffering from diabetes and approximately A quarter are classified as obeseThe demand for healthier packaged food products resonates with a wide audience.
social media driven brand
The strength of traditional consumer companies in India lies in their offline distribution reach and high advertising budgets.
But as an online marketplace According to experts, expand their delivery network across the country and social media marketing playground, direct-to-consumer or D2C brands are on the rise in India.
As influencers are increasing awareness, people are reading the back of the pack to check the ingredients, efficacy and impact, said Yash Dholakia, partner at New Delhi-based venture capital firm Sauce.vc, adding that consumers are becoming more aware of what they are paying for. This is giving a boost to D2C brands.
“This is a huge lever on which the personal care and food brands of the future will be built,” he said, adding that traditional brands that do not thrive will be replaced.
Taking advantage of the social media-amplified chorus for healthy eating, Dholakia’s firm has also invested in a D2C startup focusing on healthy eating, and “rebuilding trust” in food by boosting consumer awareness through social media platforms.
Himatsingka has also launched his own packaged food brand, which he says comes with “clean label products”. These are products that have short, simple ingredient lists that are easy for regular consumers to understand and are free from additives.
Many other D2C brands have emerged over the past few years, capitalizing on the growing demand for healthy food and leveraging social media to expand their reach.
Viral social media content related to food safety is not only creating awareness but also providing alternatives, and this is something that large consumer product companies will be keeping a close eye on.
need to know
India, the world’s third-largest carbon dioxide emitter, is burning more coal
Energy supply disruptions due to Iran war and nationwide heat wave Demand for dirty fuel increased in India. Its coal-fired power output rose to 164.9 average gigawatts in April from 160.7 average gigawatts last year, according to data shared by S&P Global Energy.
India’s Modi tightens political grip with historic victory in state elections
Indian Prime Minister Narendra Modi’s Bharatiya Janata Party scored a historic election victory in West Bengal on Monday, strengthening its hold on power as the country grapples with economic challenges and an urgent need for reforms.
Digital lender Onemi’s IPO was subscribed 9.5 times
OneMi Technology Solutions’ IPO issue worth ₹9.2 billion ($97 million) was oversubscribed With keen interest from institutional investors. The company offers unsecured loans to customers, most of whom earn less than $1,000 per month. more than this 98% of loans disbursed are unsecuredAccording to the IPO filing.
is coming
May 12: Consumer price index data for April.
May 14: Wholesale price index data for April.
