Leading FMCG players witnessed strong growth momentum in alternative distribution channels which includes quick commerce, e-commerce and modern trade. In recent quarters, FMCG players have been reporting strong acceleration in sales in the overall e-commerce channel led by quick-commerce platforms.
As per quarterly update for Q2FY27, AWL Agribusiness indicated that alternate channel, consisting of modern trade, quick-commerce and e-commerce, delivered “double-digit growth”. “Within food & FMCG, key categories continued to gain traction across e-commerce and quick commerce, collectively delivering 40 per cent year-on-year growth. AWL has established a meaningful presence across these channels, with average market shares of over 10 per cent in Atta, over 25 per cent in Besan, over 40 per cent in Soya Nuggets, and around 15–20 per cent across Sugar, Suji and Poha,” the company added. It also said that execution metrics such as product fill rate and customer retention saw improvement during the quarter, supported by better assortment and availability.
In a BSE filing, Dabur India noted that “emerging channels comprising e-commerce and quick commerce are expected to report “strong growth momentum” in Q2FY27, led by its continued investments and focus on an omni-channel distribution approach. “Modern trade continues to grow at double digits. General trade continued to grow across both urban and rural markets, with rural continuing to outpace urban, led by continued efforts under Project Saksham,” the company added.
Honasa Consumer Ltd, known for brands such as Mamaearth, also noted in its Q2 update that the online channel witnessed “continued growth” momentum during the quarter. It added that general trade and modern trade channels are also expected to post strong growth on the back of its focus on garnering deeper offline distribution.
According to estimates by NielsenIQ, the overall e-commerce channel’s share grew to 7 per cent of pan-India FMCG sales in the June quarter. E-commerce channel share of FMCG sales in the top eight metros was pegged at 21 per cent. At the same time in the top 52 metros, the online channel’s share of industry sales was estimated at 21 per cent in the June quarter.