As the Indian summer heats up, so does the pace of retail innovation. From cold beverages to frozen snacks, consumers nationwide are experiencing a dramatic shift in availability and pricing, driven not by tradition but by algorithms.
A new report by Sciative Solutions reveals how Artificial Intelligence (AI) is revolutionising the fast-moving consumer goods (FMCG) and quick commerce sectors in India.
Seasonal Demand Triggers Massive Product Expansion
According to the report, there was a 50% surge in FMCG product listings from the pre-summer to the peak summer season. Packaged foods and cold beverages led the trend with an 80% increase in listings, driven by rising temperatures, school holidays, outdoor events, and a growing preference for light, ready-to-consume items.
Consumers are increasingly opting for snacks, juices, and chilled drinks to combat the heat—prompting brands to rapidly expand their offerings. “AI is enabling brands to not just respond, but proactively lead in rapidly evolving market conditions,” noted Vijeta Soni, Co-founder & CEO, of Sciative Solutions.
Hyperlocal Pricing Gains Momentum
The report finds that 60% of FMCG products are priced differently across India’s pin codes, with 30% of items seeing price changes within a single day. Categories like Ice Cream, Frozen Foods, and Dairy are most affected, as their perishability and delivery sensitivity require dynamic, localized pricing strategies.
“We are witnessing the arrival of precision commerce at scale,” said Dr. Anshu Jalora, Founder & Managing Director of Sciative Solutions. “AI is turning retail complexity into a competitive advantage by aligning decisions with real-time consumer behaviour, demand, and stock dynamics.”
Quick Commerce Emerges as a Summer Catalyst
About 30% of brands either launched or expanded their quick commerce presence during the summer. Frozen foods and beverages experienced price hikes of 16% and 15%, respectively, driven by logistics costs and consumers’ willingness to pay for convenience.
The study also highlights the role of real-time competitor monitoring, which uncovered frequent price shifts across platforms, making responsive pricing strategies a critical component for success.
Kombucha: A Case Study in Premium Strategy
Among the standout insights is the 150% rise in Kombucha listings, achieved without discounts. Instead, AI tools helped brands target wellness-focused consumers and maintain premium pricing, proving that data-driven strategies can replace traditional penetration tactics.
AI as a Strategic Imperative
With consumer behaviour becoming more regional and seasonal, the report concludes that AI is no longer just a helpful tool—it’s a strategic necessity for FMCG brands navigating India’s dynamic digital retail environment.