Exploring Consumer Reach Points (CRPs) in FMCG Brands

In the dynamic world of Fast-Moving Consumer Goods (FMCG), understanding and analyzing consumer reach points (CRPs) is crucial. CRPs are a measure of consumer activity, reflecting the frequency and actual purchases made by consumers in a given year. The latest data from Kantar’s ‘Brand Footprint’ India report reveals intriguing insights into the CRPs of FMCG brands in 2023.

The CRPs of FMCG brands witnessed a modest 7% growth to reach 115 billion in 2023. This growth trajectory reflects the consumption patterns in the economy and the sector’s overall slowdown. Despite this, CRPs have increased by almost 33% over the last five years, showcasing the resilience of the industry.

Broken down by sectors, the report highlights a mixed bag of performances. While food, holding the largest share in the FMCG space at 37%, remained relatively stable, sectors like homecare, health and beauty, and beverages faced challenges. Dairy emerged as the standout, experiencing a modest 2% growth in CRPs.

K Ramakrishnan, the managing director of Kantar’s Worldpanel division, emphasizes the significance of consumer choice as a barometer of brand strength. He notes that as consumers make more purchase trips, their options and preferences evolve, leading to an uptick in CRPs. Kantar’s Brand Footprint report, now in its 12th edition, offers a comprehensive ranking of the most chosen FMCG brands globally.

In 2023, Parle, a prominent player in biscuits and confectionery, retained its top spot on the CRP chart for the 12th consecutive year. Other notable brands like Britannia, Amul, Clinic Plus, and Tata Consumer Products followed closely. Parle’s success can be attributed to its expanding reach and competitive pricing strategies.

On a global scale, Coca Cola leads the pack of most chosen brands, with Colgate, Maggi, and Knorr in tow. In the realm of out-of-home consumption, Britannia claimed the top position, with Haldiram’s, Cadbury, and Balaji trailing behind. Domestic snacking giants like Haldiram’s and Balaji have shown significant growth in CRPs, reflecting evolving consumer preferences.

Overall, the FMCG sector has maintained a steady growth rate of 3.3% over the past two decades, although it lags behind GDP growth. This highlights the sector’s enduring relevance in consumers’ lives. The report also introduces Femcare as a new entrant, with Whisper and Stayfree making a mark in the top 100 brands list.

As FMCG brands navigate a dynamic market landscape, understanding and leveraging CRPs are key to sustaining growth and captivating consumer interest. Kantar’s insightful data sheds light on the evolving consumer behavior and preferences that shape the FMCG industry’s trajectory.