Business · Companies · 3 hrs ago
New consumer brands gain share in India's kirana stores
New-age consumer brands are gaining ground in India's neighbourhood kirana stores, which have long been dominated by established fast-moving consumer goods companies.
Their share reached 21.7% in the first half of FY27, up from 14.8% a year earlier, while legacy brands' share fell to 78.3%.
Many newer brands first grew through online sales, and wider access to online and modern retail channels is helping them reach more shoppers.
They often target urban consumers willing to pay more for premium products, including goods marketed as science-based or performance-focused.
Shoppers asking for these products have encouraged retailers to stock them, even when the products cost more.
But keeping products on shelves and building sales over time remain difficult for newer companies facing incumbents with deep physical distribution networks.
Established brands are responding to demand for premium products, while the longer-term challenge for newer brands is to sustain their growth in physical stores.
New-age consumer brands reached 21.7% of India’s kirana market in the first half of FY27, up from 14.8% a year earlier.
Legacy fast-moving consumer goods companies’ share fell to 78.3%, from 85.2%.
Changing consumer preferences and access to online and modern-trade channels are helping newer brands reach shoppers.
New brands face the challenge of sustaining physical distribution against established companies’ deep offline networks.
Established brands are adjusting their strategies as demand for premium products grows.
- Who
- New-age consumer brands and established fast-moving consumer goods companies.
- What
- New-age brands increased their share of India’s kirana market to 21.7% in the first half of FY27.
- When
- The first half of FY27; the comparison is with a year earlier.
- Where
- Kirana stores across India.
- Why
- Changing consumer preferences and greater access to online and modern-trade channels are helping newer brands expand.
This story does not have two clearly opposing sides.
New-age brands held 14.8% of the kirana market, while legacy players held 85.2%.
New-age brands’ share rose to 21.7%, while legacy players’ share fell to 78.3%.
D2C brands expanded their kirana footprint by 200 basis points across urban and rural markets.
- New-age brands’ market share
- 21.7% in the first half of FY27
- New-age brands’ earlier market share
- 14.8% a year earlier
- Legacy players’ market share
- 78.3% in the first half of FY27
- Kirana outlets tracked by Bizom
- 10 million
- Plum’s offline revenue share
- 30%
What people are saying
This is the first time in a long time that new players are creating a possibility of changing the market structure
Getting products into stores is relatively easy, sustaining distribution and building sales over time is harder
For new-age brands, the real test now lies in sustaining this massive physical distribution network against the deep offline reach of incumbents