Silver lining: FMCG firms roll out tailored offerings for golden years

Affluent and health conscious, mature consumers are becoming selective about what they buy. Businesses are stepping up to meet their needs

With the realisation that those in the higher age brackets, with greater disposable income, are spending more on specialised products, India's fast-moving consumer goods (FMCG) companies are launching food items and skincare lines tailored to their needs. 

 

One of the country’s largest FMCG companies, Hindustan Unilever (HUL), for instance, offers both face creams and nutritional products for the older demographics. ITC, another key player, has also introduced products aimed at consumers over the age of 45.

 

“We have a range of products that meet the specific needs of maturing adults,” said an HUL spokesperson in an email response. “For example, Pond's has an Age Miracle range, and Lakmé has a Retinol Advanced Renewal range, both formulated for mature skin.” 

 

The company’s range under Horlicks, including Strength Plus and Diabetes Plus, too, has been designed to address the health challenges that come with ageing, the spokesperson added.

 

Earlier this year, ITC launched Right Shift – a brand of “nutrition-dense foods tailored for the specific needs of the 45+ cohort who are aspirational and have discerning needs”, said the company via email. Through this range, ITC aims to change perceptions of ageing and encourage consumers to embrace it. “...we want to enable them to look ahead, feel free, and explore more irrespective of age,” the company said. The range includes jagger oats cookies, roasted snacks, millet oats, upma mix, millet masala oats, multi-grain atta, and so on.

 

Experts attribute this trend to the rise of e-commerce, quick commerce, and direct-to-consumer (D2C) platforms, which have spurred demand in niche segments. 

 

“Thanks to e-commerce, specialised beauty platforms, and D2C, much more micro-segmentation is now possible,” said Angshuman Bhattacharya, EY India’s national leader for consumer products and retail. “This isn’t necessarily about building scale through traditional trade but through D2C channels, marketplaces, and quick commerce.”

 

Increasing affluence, he added, has driven the desire for more personalised solutions. Big companies are now looking at how to differentiate through specialisation and bespoke products, with personalisation being a major trend both in India and globally, he said. 

 

While these niche segments may take time to grow, companies, he added, are betting on them for future expansion, creating new legs of growth by micro-segmenting the market.

 

Anand Ramanathan, who leads the consumer products and retail sector for Deloitte in South Asia, highlighted that affluent households have been driving consumption and premiumisation across the consumer sector, particularly after the pandemic. Many affluent households, especially in urban India, have family members over the age of 45, so as the market matures, there will be more specialised offerings, he said.

 

While he acknowledged that India's affluent consumer base is growing, and it wields considerable spending power, Ravi Swarup, partner at Bain & Company India, also noted that the older demographic is more stable and selective in its brand choices. 

 

“The good thing is that they are digitally proficient,” he said. And while their share of e-commerce and quick commerce spending isn't growing as quickly as that of GenZ and millennial’s, there is still a fairly decent penetration in this segment, Swarup added.

 

As a result, both traditional pharmaceutical and FMCG companies are exploring opportunities in this space. While pharmaceutical companies have a head start in understanding treatment areas, FMCG companies excel in consumer insights and demand generation.

 

“Consumer health is an attractive space for both FMCG firms looking to expand into health and pharmaceutical companies seeking adjacent markets,” Swarup said.

 

The jury is out on who will dominate.

 

Specialised cart

 

> HUL: Offers both face creams and nutritional products for the older demographics. Pond's has an Age Miracle range, and Lakmé has a Retinol Advanced Renewal range. The company’s range under Horlicks, including Strength Plus and Diabetes Plus

  > ITC: Launched Right Shift – a brand of “nutrition-dense foods tailored for the specific needs of the 45+ cohort who are aspirational and have discerning needs 

> Big companies are now looking at how to differentiate through specialisation and bespoke products, with personalisation being a major trend both in India and globally   

ALSO READ PART I: Silver lining: How senior living market is redefining retirement in India