Business · Companies · 3 hrs ago

New consumer brands gain share in India's kirana stores

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.

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What people are saying

Tarun AroraChief executive of Zydus Wellness
This is the first time in a long time that new players are creating a possibility of changing the market structure
via Economic Times
Getting products into stores is relatively easy, sustaining distribution and building sales over time is harder
via Economic Times
Parth SethiGrowth officer at Bizom
For new-age brands, the real test now lies in sustaining this massive physical distribution network against the deep offline reach of incumbents
via Economic Times