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Patanjali sees urban sales decline as rural growth shrinks

today Aug 5, 2019
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The Ayurvedic fast-moving consumer goods business Patanjali has seen its urban sales decrease and rural sales continue to grow, but at a reduced rate, as more brands capitalise on India’s growing natural products market, according to a recent study.

Patanjali is witnessing reduced growth as other brands capitalise on India’s growing naturals market - Patanjali- Facebook

According to the WPP-owned international consumer research firm Kantar Worldpanel, Patanjali’s urban sales decreased by 2.7% during the 12 month period that ended in April 2019, compared to 21.1% growth a year before.

The business did see rural sales continue to grow in the same time period, but at the much reduced rate of 15.7% compared 45.2% a year earlier. 

Kantar Worldpanel pegged the urban natural products market growth at 3.5% for the 12 months and the rate was unchanged from the year before.

In rural areas, the research firm found that growth had increased from 4.4% to 5% during the same time period. This shows that other businesses are benefitting from growth in the market. 

"The natural segment is driven not just by core natural brands, but also ones introducing some natural ingredients in their products," said K Ramakrishnan, Kantar Worldpanel’s managing director, as reported by ET Bureau.

"It has helped incrementally build the parent brand, which may not be in the natural space at all." 

Big brands are noticing the growing natural products market, especially in the beauty and personal care segments.

Large brands including L'Oreal, Hindustan Unilever, Colgate, and Dabur have all launched natural product lines in the hair care and beauty product categories and witnessed subsequent growth. 

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