Indian Economy News

India leads Asia-Pacific in terms of major consumer goods manufacturers

  • IBEF
  • November 7, 2023

According to the management commentary released by several of the largest global consumer goods companies after their earnings, the Indian market performed better in the last quarter than the rest of Asia Pacific, including China.

In the July-September quarter, a number of these corporations—including Mondelez International, PepsiCo, Coca-Cola, Pernod Ricard, Colgate-Palmolive, Unilever, Levis Strauss & Co., Yum! Brands, Honeywell International, and AO Smith—reported robust double-digit growth in their India operations. Additionally, India's performance was among the best for these multinationals in all emerging economies. Strong trends of product premiumisation indicate that big alcohol beverage companies Pernod Ricard and Budweiser Brewing Company expect their India business to drive their global statistics this fiscal year. Apple and Coca-Cola reported their strongest sales and volume performance in several years.

The Chairman and Chief Executive of Modelez, the snacking giant, Mr. Dirk Van de Put, the consumer demand in India in the last quarter was at a four-year high.

Mr. James Quincey, the Chairman and Chief Executive Officer (CEO) of Coca-Cola, stated that the company is witnessing "strong consumer demand in Latin America, India, and certain regions of Central and Southeast Asia." However, in China and Africa, consumer confidence in spending has not yet fully recovered.

The resurgence of optimism amongst multinational conglomerates in the consumer goods sector coincides with industry trackers indicating better demand month-over-month in India with moderating inflation across product categories, including fast-moving consumer goods, groceries, consumer electronics, and mobile phones.

October, the opening month of the current quarter, saw a significant improvement in demand, according to industry officials, driven by higher premiumisation and festive spending.

Budweiser Brewing Company APAC, one of the biggest beer businesses in Asia Pacific, reported last quarter's strong double-digit increase in premium and super premium portfolios in India, which supported strong double-digit growth in overall sales.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.