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India's FMCG Sector Set for 5% Growth Boost
6 Jan
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 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.
