|
|
|
You can get e-magazine links on WhatsApp. Click here
|
|
|
|
|
|
ITC’s packaged foods growth slows as market share pressures mount
|
|
Friday, 16 January, 2026, 12 : 00 PM [IST]
|
|
Our Bureau, Mumbai
|
ITC Ltd’s much-touted growth story in the packaged foods segment is showing signs of strain. The diversified conglomerate — better known as India’s largest cigarette maker — had pitched its foods business as a core growth engine to investors, but recent market data suggests performance has lagged behind expectations.
Once one of the fastest-growing packaged food companies in India — with decade-long compounded annual growth around 13% — ITC’s food business has slowed considerably. Over the past three years, growth has tapered to approximately 7.7%, while market share in key categories such as biscuits, western snacks and juices has either stagnated or declined, industry data shows.
According to NielsenIQ figures ITC’s share in the biscuits category — the largest segment in packaged foods — has remained flat at roughly 8% by value and 9% by volume. In western snacks, its value share dipped to about 11% in the year ending September 2025 from 13% two years earlier, and its juice and nectar portfolio under the B-Natural brand saw a sharp erosion in value share.
In response, ITC has emphasised that traditional syndicated surveys may not fully capture sales through newer and rapidly growing channels. A company spokesperson said alternate channels now contribute about 30% of its FMCG sales, with digital-first brands such as Yogabar, Prasuma, Meatigo and 24 Mantra reportedly clocking an annual run rate of around Rs 1,100 crore. ITC is also investing in innovation, premiumisation and value-accretive acquisitions to revitalise its food portfolio.
Analysts note that ITC’s broad diversification — spanning staples to snacks — has made it difficult to capture incremental share in fiercely competitive categories dominated by specialised rivals. As the company works to balance its reduced reliance on cigarettes with stronger FMCG credentials, the coming quarters will be crucial for its packaged foods strategy.
|
|
|
|
|
|
|
|
|
|