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India is witnessing a surge in the number of nuclear families. As per data from Kantar, nearly 50 per cent of all households in India are nuclear (1-4 members). These families are typically more liberal with spends and are driving the premiumisation trends in the FMCG sector.
According to Kantar data, at the all-India level, 50 per cent of the 318 million households were nuclear in 2022, up from 37 per cent of households in 2008. In the southern region, nearly 69 per cent of households are nuclear (50 per cent in 2008). In the northern and eastern regions, the share of nuclear families was 38 per cent and 45 per cent, respectively, in 2022. In the west, it is 49 per cent.
“About three-fourth of the incremental households in India over the past 14 years are nuclear,” Kantar noted in its Consumer Connections 2023 research.
The insights and research firm stated that such families tend to spend on additional categories such as home hygiene, snacking and beverages beyond essentials. “Nuclear families tend to shop 21 categories compared to 20 categories by joint families,” it added.
The nuclear families are also driving the premiumisation trend in categories such as toilet soaps, toothpaste, tea, detergent bars and washing powders. “Nuclear families show more affinity to premium formats in these categories such as handwash, fabric care liquids, dishwash liquid, bodywash, conditioner bottles and shampoo bottles,” the Kantar report added.
The report noted that nuclear and joint families tend to have similar socio-economic profiles. “Nuclear families are liberal in their consumptions and spends. Nuclearisation of family is leading to premiumisation of FMCG in India,” it added.
K Ramakrishnan, Managing Director-South Asia, Worldpanel Division at Kantar, said, “The Indian household size is shrinking. Joint families used to dominate in 2008 but now the ratio of joint families and nuclear families has become equal, which is a big change.” He added that while their affluence maybe similar to joint families, nuclear families tend to be better educated and have a higher proportion of working female members.
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