Social media reshapes world’s fastest-growing consumer market
Hello, I am Priyanka Salve, writing to you from Singapore.
Welcome to the latest edition “in india“ — your one-stop source for stories and developments from the world’s fastest-growing major economy.
Rising incomes and large population base make India a key market for global consumer-focused companies. But celebrity endorsements and wide distribution are no longer enough to attract customers. Viral social media videos are influencing consumer preferences and brands are responding.
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Social media influencers are heralding a major shift in India’s packaged food and beverage space by encouraging consumers to read labels, pushing big brands to produce healthier products or risk being replaced by new entrants.
One of the world’s largest packaged food and beverage companies, PepsiCoIt is the ultimate solution that responds to changing customer preferences.
“Today, more than 50% of our beverage portfolio in India consists of low-sugar or sugar-free offerings,” said Nitin Bhandari, vice president and general manager, beverages, PepsiCo in India, adding that the company aims to “scale low-sugar and sugar-free options to 90% of our beverage portfolio in India over time.”
PepsiCo collects consumer insights through engagement forums, social media and WhatsApp-based consumer loyalty platform PepGenie, Bhandari told CNBC in an email.
India’s per capita income is expected to increase in the next five years. The fastest growing among the top five Emerging markets for consumer products including China, Brazil, Mexico and Russia make this a priority for global consumer products companies, according to Bain & Company.
Global companies already dominate the world fastest growing major The report stated that the consumer market includes 20 product categories, from soft drinks and alcoholic beverages to salty snacks, detergents and baby diapers.
However, the Indian market opportunity comes with pressure to change strategy according to consumer preferences. Social media has also emerged as an important platform for public advocacy in India over the past few years, raising awareness about food safety and mislabelling.
Shamik Kumar, an experienced food safety expert who has worked with multinational companies in India, said brand trust based on celebrity endorsements has turned into “community-verified trust” due to social media influencers.
NEW DELHI, INDIA – 2025/09/27: The stand of Dabur Ltd, an Indian multinational consumer goods company, produces Ayurvedic products as well as other fast moving consumer goods (FMCG) during the exhibition.
Stick Pictures | Light Rocket | Getty Images
Social media phenomenon Revant Himatsingka, who uses Food Pharmer on social media, has millions of subscribers and is facing reactions from consumer companies, says that his content makes people read labels and as a result, companies produce better quality products.
Over the past few years, many brands, including Mondelez,owned by Bournvita and Dabur real fruit juiceIt has come under fire for its higher sugar content following viral videos on social media.
While Himatsingka was forced to remove the viral Bournvita clip, local media reported that the company reduced the sugar content in the product following growing public outcry.
Dabur told CNBC that it has been on track to reduce sugar in its juice offerings since 2018, reducing sugar by 21% by 2023.
“We are currently working on a further 20% reduction in sugar in the Real core beverage line,” a company spokesperson said in an email. The company is also developing low-sugar and zero-sugar varieties to appeal to sugar-conscious consumers.
Mondelez did not respond to CNBC’s request for comment.
India’s food safety regulator also issued notifications banning malt based drinks Like Bournvita using the “health drinks” brand and food companies making “100% juice” claims for drinks with added sugar.
Just last month, numerous videos on social media highlighted the sugar content in mango-based drinks, including Coca-Cola’s Mazaa. high sugar content drinks even reach the Indian parliament.
For a country with a population of around 100 million people living with diabetes and almost a quarter are classified as obeseCalls for healthier packaged food products resonate widely.
Social media focused brands
The strength of traditional consumer companies in India lies in their offline distribution reach and high advertising budgets.
But as online marketplaces According to experts, direct-to-consumer or D2C brands are on the rise in India, expanding delivery networks across the country and increasing levels of social media marketing.
As influencers raise awareness, people are reading the back of the pack to check ingredients, effectiveness and effects, said Yash Dholakia, partner at New Delhi-based venture capital firm Sauce.vc, adding that consumers are increasingly conscious of what they are paying for. This strengthens 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 it will replace traditional brands that are not evolving.
Leveraging the social media-amplified chorus for healthy food, Dholakia’s firm has also invested in a D2C initiative focused on healthy food and “rebuilding trust” in food by promoting 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 with a short, simple ingredient list, free of additives, that are easy to understand for regular consumers.
Several other D2C brands have emerged over the past few years leveraging social media to grow their footprint, building on demand for healthier food.
Viral social media content about food safety not only raises awareness but also offers alternatives, and it’s an issue that major consumer products companies will be watching closely.
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approaching
May 12: Consumer price index data for April.
May 14: Wholesale price index data for April.
