Slowdown in sale of biscuits and cookies: A blip in rural consumption or premiumisation of eatables? -Himadri Buch

-Moneycontrol.com

The Rs 35,000 crore biscuit industry has several players, the top most being the Britannia and Parle, which accounts for 70 percent of the industry’s volume and revenues.

Subdued rural growth has begun to show up in the cookies category of eatables, especially your tea-table humble biscuit plates. Reports have emerged that the staple biscuits category like Parle-G has slowed down in rural demand, although similar pains are not visible in the premium category yet.

An intriguing question is whether this slowdown is a warning bell for the home foods category, or just a blip following a drop rural income.

On the surface of it, it seems to be more of a blip as GST (Good and Services Tax) of 18 percent on a Rs 5 staple biscuits pack is too steep for the bottom of pyramid customer, especially when rural incomes have shrunk.

The Rs 35,000 crore biscuit industry has several players, the topmost being the Britannia and Parle, which accounts for 70 percent of the industry’s volume and revenues.

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