When is India's FMCG sector expected to grow by 5%?

India's FMCG sector is expected to achieve 5% volume growth in the early months of 2026.

What factors are driving growth in India's FMCG market?

Growth is driven by low inflation, positive GDP expectations, and improving consumer confidence.

Has consumer confidence returned to India's FMCG market?

Yes, the RBI's Consumer Confidence Index indicates a return of consumer confidence in India.

Home / Business and Economy / India's FMCG Sector Set for 5% Growth Boost

India's FMCG Sector Set for 5% Growth Boost

6 Jan

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Summary

FMCG sector expects 5% volume growth in early 2026.
Low inflation and rising GDP expectations lift demand.
Consumer confidence shows signs of returning.

India's FMCG Sector Set for 5% Growth Boost

India's FMCG sector is anticipating a significant volume growth of 5% within the initial months of 2026. This optimistic forecast is underpinned by a confluence of strong macroeconomic indicators, including sustained low inflation and revised upward expectations for the nation's Gross Domestic Product (GDP).

The Worldpanel's December FMCG Pulse report highlights that the positive economic climate is translating into increased demand. Many manufacturers are actively passing on the benefits of reduced inflation to consumers. Concurrently, the Reserve Bank of India's (RBI) Consumer Confidence Index signals a notable return of consumer confidence, a crucial element for sustained market growth.

This anticipated growth follows a period of slower performance, with FMCG having registered a 5.3% growth in the quarter concluding October 2025, marking the best performance in several quarters. However, the moving annual turnover for 2025 is expected to trail behind 2024's figures, and a stagnation in the average number of shopping trips for FMCG products has been observed.