Summer-centric products sizzle as heatwaves persist across country

Beverage major Coca-Cola also reported a spike in demand across its portfolio

With heatwave persisting in most parts of the country, fast-moving consumer goods (FMCG) companies continue to report a sharp increase in the sales of summer-centric products like ice-creams and cold beverages.

“With soaring temperatures and the ongoing heat wave conditions in the northern region, there has been a significant increase in the demand for all summer-centric products, including ice-creams, dairy beverages, and curd. These categories are witnessing an uptick in the demand by over 40 per cent,” said Manish Bandlish, managing director, Mother Dairy.

Beverage major Coca-Cola is also seeing a spike in demand across its portfolio.

“With the summer season at its peak, the Indian beverage market has significantly gained momentum, and our brands have been witnessing consistent growth in terms of sales. With this, we expect to remain bullish in our sparkling, hydration, and juice segments,” said a spokesperson for the company.

The maker of Sprite and Thumbs Up is continuously scaling up distribution “through traditional as well as newer emerging channels,” to address the demand surge, the spokesperson added.

Many have also modified their existing products to suit the customers’ needs. Home-grown FMCG company Dabur India has forayed into the ready-to-drink glucose category, with the launch of 'Dabur GlucoPlus-C Instant Energy Drink' in a PET bottle.

“With the heatwave conditions intensifying across east, north, and central India, we are witnessing growing demand for our summer-centric products, particularly the glucose portfolio. We have already built inventory for the same, both at the retail and stockist end, to meet this growing demand,” said Anhsul Gupta, sales head at Dabur India.

According to the data sourced from market research firm Kantar, FMCG companies have been reporting strong volume growth since the summer set in.

“The typical summer categories are seeing strong numbers. Bottled soft drinks, including carbonated soft drinks, juices, ready-to-drink tea, and milk-based beverages, have witnessed robust growth,” K Ramakrishnan, managing director, south Asia, Kantar Worldpanel, told Business Standard.

Juice and juice-based drinks saw volume growing by 22 per cent in February-March-April (FMA) '24 compared to the same quarter last year, and 19 per cent compared to the same month last year.

Milk-based drinks are also on the rise, with 55 per cent volume growth year-on-year for the FMA '24 quarter and 37 per cent compared to the same month last year.

Carbonated drinks also continued their upward trajectory, growing by 19 per cent in April 2024 compared to April 2023. Ice-creams and kulfi sales have skyrocketed in April this year, experiencing a 56 per cent volume growth compared to April 2023, at the overall level.

Durables like air conditioners and coolers, too, have witnessed a surge in demand.

“Sales of air conditioners have skyrocketed this season. People are even willing to buy ACs on MRP this year, which is a first as customers generally seek some discounts. We are also seeing, for the first time, demand emerge from cities like Bengaluru and Pune,” a top official at a leading electronics company told Business Standard.

Restaurants in the national capital are also seeing rising demand for their curated summer menus.

“While footfall remains low in the afternoon, we are seeing our curated summer cocktail and mocktail menu become a favourite among patrons who dine out in the evening. Sales of beverages have doubled in the past few weeks,” said Payal Verma, director at Khan Market’s Blue Door Café.

Ashish Ahuja, director at Pebble Street Café in New Friends Colony, echoed similar sentiments.

“We usually do 20-30 per cent more sales in the summer months as people are looking to spend time in air-conditioned places. While afternoons are slow, we start seeing crowds in the evening. We have also noticed a clear shift towards consumption of beer from hard liquor among patrons,” he added.