Expect to see a lot of collaborations & consolidations in the FMCG sector: Divyesh Panchal

The start of a new year is seen as bringing in new operational efficiencies, stronger strategies, a far greater emphasis on building deep bonds with various stakeholders and consumers. In keeping with the current market ecosystem, technology and a human approach are seen as going hand in hand.

As 2023 kicks off, Adgully has approached key industry leaders to Crystal Gaze into 2023, as part of our annual Trending Now series, to highlight the major trends and developments that they see dominating the industry in the year ahead.

Divyesh Panchal, Founder, and CEO, D2P Consultancy, speaks about some key trends dominating the FMCG industry, the major push towards healthy and mindful snacking, collaborations and consolidations expected in the FMCG sector, and more.

Key trends that will dominate the FMCG industry in 2023

Many of the trends that seemed futuristic 5 years ago have taken the front seat in the food FMCG space presently.

Talking about protein, the whole narrative has changed drastically, which is amazing for a protein-deficient country like India. All kinds of brands, be it dairy or non-dairy, have some or other kind of high protein product in their portfolio.

The plant-based industry is booming, you will find a vegan alternative for almost any non-vegan product, something which was extremely rare 6 years ago.

When it comes to the snack industry, there’s a lot happening here too. Everything that you see is trying to be snackified, so you’ll find a lot of food products in portion-controlled, small, and accessible packaging.

Additionally, clean label brands are becoming increasingly popular. No sugar, no carbs, no fat, high protein, etc., is usually what the clean label brands play on.

I’ve also noticed that instead of providing a one-product-fits-all solution, the industry is moving towards making products dominated with one particular nutrient, vitamin, or macro.

Major expectations

In the years to come, I expect to see a lot of collaborations and consolidations in the FMCG sector. This means that the kind of funding and money that will be pumped in will be more thoughtful.

The entrepreneurs would be starting up fresh as they’ll have to stick around for a minimum of 7-8 years, given the complex nature of doing an FMCG business in India.

A lot of the big and established players will be trying new trends and keeping up with consumer expectations. We’ll see a lot of innovations from the existing players as well.

Focus areas for D2P Consultancy in 2023

As far as our consultancy is concerned, we see digital marketing strategies driving business for us through the content that we post on Instagram and LinkedIn. We receive a great number of inquiries related to our services. So yes, we’ll be investing a significant amount of time and effort into solidifying our digital presence.

This past year has truly been a huge learning curve for us as we’re still figuring the kind of content that works and that doesn’t, but yes, I believe digital marketing is surely going to help us reach new clients and grow.