Digital commerce & AI-driven personalization drove FMCG in 2024: Prashant Parameswaran

As we conclude another year, it is essential to reflect on the key developments, challenges, and achievements that have shaped different sectors throughout the past 12 months. The year 2024 has been marked by dynamic shifts, rapid innovation, and the continued adaptation to both external factors and emerging trends.

Adgully’s annual feature – REWIND – revisits different sectors and identifies the key developments as well gauges the long-term impacts of those developments. We speak to a cross-section of industry leaders to bring a 360-degree view of the industry landscape, the growth trends, financial performance, disruptions, innovations, challenges and more.

In this REWIND 2024 article, Prashant Parameswaran, President, Tata Soulfull (Tata Consumer Products), recaps the key developments and trends that shaped the FMCG sector in 2024, especially in the area of wider adoption of millet as part of people’s shift towards healthier, more sustainable food choices.

Overview of FMCG sector in 2024

The year 2024 was a transformative one for both the Indian economy and the FMCG sector, driven by resilience, innovation, and a collective effort to align with evolving consumer demands. One of the most defining moments for the sector was the global recognition of millets, marking India’s role as a leader in sustainable food systems. The spotlight on millets offered the FMCG industry a unique opportunity to cater to the rising demand for healthier, more sustainable food choices.

At Soulfull, a brand from the house of Tata Consumer Products, we capitalized on this momentum, positioning ourselves at the forefront of the millet revolution. By introducing innovative millet-based products, we successfully combined traditional nutrition with modern convenience, catering to the health-conscious consumer who increasingly seeks products that are nutrient-rich, minimally processed, and culturally rooted. We also saw accelerated growth fueled by digital adoption and government support, although the need for continuous innovation in a competitive and evolving regulatory landscape remains paramount for long-term success.

Key trends that shaped the FMCG sector in 2024

The millet revolution defined 2024, with India taking a leadership role through the G20 presidency, highlighting millets as a sustainable superfood. This growing awareness significantly influenced the FMCG sector, especially in the health and wellness categories, where consumers increasingly demanded products that aligned with their health-conscious values. At Tata Soulfull, we embraced this trend by introducing millet-based innovations that blend traditional flavors with modern dietary preferences.

In addition to the millet shift, digital commerce and AI-driven personalization became pivotal in shaping industry practices. Companies increasingly leveraged these technologies to create more personalized experiences for consumers. Eco-conscious operations, driven by the need for sustainability, also became a central theme. Furthermore, the growing popularity of regional and hyper-local products underscored the importance of cultural authenticity, reinforcing the need to offer products that cater to local tastes and preferences.

Soulfull’s Milestones and Achievements in 2024

At Soulfull, 2024 was a year of significant milestones. We experienced high double-digit business growth across our entire portfolio, thanks to our continued investment in millet-focused marketing and innovation. A highlight of the year was our Millet Mandi initiative, launched in collaboration with India’s leading retailer. This program was designed to boost category awareness and educate consumers about the nutritional benefits of millets. We also took our millet education efforts to the grassroots level through the “Desh ke Millets” School Contact Program, reaching over 1 lakh students across the country.

Our product offerings expanded significantly, with the launch of Tata Soulfull Corn Flakes+, Tata Soulfull No Maida Rusk, and Tata Soulfull Masala Muesli. These products reflect our commitment to providing wholesome, better-for-you options that resonate with Indian taste preferences. Through strategic digital campaigns and partnerships, we strengthened our brand’s presence and reaffirmed our leadership in the better-for-you food segment.

Looking Ahead to 2025: Anticipated Trends and Innovations

As we look to 2025, we anticipate the millet category to experience accelerated growth, driven by increasing consumer awareness of both the nutritional and environmental benefits of millets. Government initiatives will further propel the demand for clean-label, plant-based foods. Technology will continue to play a crucial role, enabling brands to deliver highly personalized experiences through AI-driven insights. Additionally, regional products will continue to gain traction as consumers embrace diverse, culturally rooted food choices.

Sustainability will remain a dominant theme, with brands focusing on circular economies and carbon-neutral practices. At Tata Soulfull, we are prepared to lead the way with millet-focused innovations, continuing our commitment to sustainability and engaging consumers through meaningful, value-driven marketing.

Tata Soulfull’s Focus and Expectations from 2025

In 2025, we aim to further our mission of making millets a mainstream choice for Indian consumers. Building on the success of 2024, we will continue investing in millet marketing and consumer education, ensuring that the next generation of consumers understands the value of millets. Our product portfolio will continue to evolve with new, innovative offerings that cater to the growing demand for healthier, wholesome food options.

We will also deepen our digital presence, particularly targeting younger demographics, and enhance sustainability efforts throughout our supply chain. Our goal is to strengthen partnerships with both retail and e-commerce platforms to ensure greater accessibility for consumers across the country. We envision Tata Soulfull becoming a household name, synonymous with wholesome, millet-based offerings, making millets accessible and affordable to the masses.

Challenges and Opportunities in 2025

While the millet category presents significant opportunities, there are challenges that need to be addressed. Rising consumer awareness and government support for sustainable food options will fuel growth in the category. However, challenges such as regulatory changes, intense competition in the health food segment, and fluctuating commodity prices remain. Educating consumers about the benefits of millets and dispelling common misconceptions will be crucial to overcoming these challenges.

With increased digital penetration and data-driven marketing, we are well-positioned to navigate these headwinds and seize the emerging opportunities in the coming year. At Tata Soulfull, we are committed to leveraging our strengths in innovation, marketing, and sustainability to continue growing and driving the millet revolution forward.

The year 2024 has been a defining one for Tata Soulfull, the FMCG sector, and the Indian economy. With a focus on resilience, sustainability, and innovation, we are ready to lead the way into 2025. The millet revolution is far from over, and as we continue to innovate and expand, we aim to make millets a staple in every Indian household, promoting better health and sustainability for generations to come.

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