Kirana stores make room for new generation FMCG brands as they muscle past

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The Economic Times daily newspaper is available online now. Read Today's Paper Kirana stores make room for new generation FMCG brands as they muscle past legacy giantsBy Aanya Thakur & Sagar Malviya, ET BureauLast Updated: Oct 28, 2026, 05:30:00 AM ISTSynopsis

India's kirana market has seen new-age consumer brands expand their market share to nearly 22%. This increase has impacted the dominance of established fast-moving consumer goods companies. The shift is largely driven by changing consumer preferences and greater access to online channels. New brands face challenges in sustaining their physical distribution network against legacy players. Established brands are adjusting their strategies in response to growing demand for premium products.

Mumbai: New-age consumer brands have increased their share of India's kirana market to nearly 22%, eating into the dominance of established fast-moving consumer goods (FMCG) companies in neighbourhood stores that have long been the stronghold of legacy players.

The market share of such brands rose to 21.7% in the first half of FY27, from 14.8% a year earlier, while legacy players' share fell to 78.3% from 85.2%, according to exclusive data from retail intelligence platform Bizom, which tracks 10 million kirana outlets.

Also read: The big Gen Z market taking over how India spends, saves and strategises

"This is the first time in a long time that new players are creating a possibility of changing the market structure," said Tarun Arora, chief executive at health and nutrition brand Zydus Wellness.

Greater access to online and modern-trade channels is helping newer brands' reach, he said, adding that it is now important for established companies to understand changing preferences, rather than rely on past strengths.

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"Consumer attitudes and preferences are changing, which we see manifested more online. Part is being manifested offline also," said Shankar Prasad, chief executive of Plum Goodness.

Sustaining Momentum a Challenge

Plum began as a digital-first beauty brand and now gets 30% of its revenue from offline channels, with about 35,000 physical touchpoints. "For new-age brands, the real test now lies in sustaining this massive physical distribution network against the deep offline reach of incumbents," said Parth Sethi, growth officer at Bizom.

These startups have also changed the economics of brand building by targeting urban, premium consumers ready to pay more and launching products more rapidly, even if some fail. "Getting products into stores is relatively easy, sustaining distribution and building sales over time is harder," Arora said. "Higher retailer margins alone cannot secure shelf space, and initial trials do not guarantee lasting market share. Expanding into general trade remains expensive and time-consuming for digital-first companies."

New kids rock The gains mark a push beyond online channels, where many new-age brands built their businesses as direct-to-consumer (D2C) players. During the September quarter alone, D2C brands expanded their kirana footprint by 200 basis points across urban and rural markets. Established brands lost 1.9% of their urban kirana outlets but increased their rural store count by 2.3%.

"It's the same consumer who goes and looks for the kind of products that new-age brands typically are driving better, which is around more science-oriented, more performance-oriented, clinical-oriented approaches," said Prasad of Plum.

Also read: From kirana to currency: Small towns are scrambling for dollars

Retailers that were initially hesitant to stock higher-priced products have become more confident as consumers began asking for them, prompting a shift in allocation over the past two to three years, he said.

Brands such as Minimalist, Oziva, Beardo, Yoga Bar, Mother Sparsh, Plix, True Elements, Cosmix and 4700BC were acquired by the likes of Hindustan Unilever, Marico, Godrej Consumer and ITC. The Bizom data excludes several digital-first brands acquired by large FMCG companies and incorporated into their businesses, said Sethi, meaning the market-share gains of new-age brands could be even more significant if these were included.
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