India's FMCG sector likely to see 5% volume growth in coming months

The Indian fast-moving consumer goods (FMCG) sector is expected to see a 5 per cent volume growth in the coming few months as inflation remains low and consumer confidence starts to make a comeback, market researcher Worldpanel by Numerator (formerly Kantar) said in its latest December 2025 FMCG Pulse.

 

“The country’s GDP (gross domestic product) expectations have been revised upward. Inflation is low, and food inflation is negative; many manufacturers are passing on these benefits to the shoppers. With macroeconomic indicators being strong and FMCG also seeing an uptick correspondingly, we expect the coming quarters to strongly build on the momentum,” said the report.

 

After nearly 18 months of lukewarm performance, the FMCG sector registered a volume growth of 5.3 per cent in the August-October period of 2025. This is the best growth registered since the quarter ending April 2024, and is at least a percentage point higher than the 4.2 per cent growth seen in the same period of 2024, the report stated.

 

However, FMCG annual-level growth for MAT (moving annual total) October 2025 remained behind the previous year’s growth – 4.2 per cent against 4.9 per cent.

 

“The late turnaround means that 2025 FMCG will remain behind 2024 FMCG by a distance,” said K Ramakrishnan, managing director - South Asia at Worldpanel by Numerator.

 

Meanwhile, as prices ease, shoppers are expected to increase trips while continuing to add more premium categories and brands.

 

According to the report, India was shopping 139 times for FMCG products before Covid. This number went down to 130 during the first year of the pandemic. Since then, it has risen to 157 in 2024 and 2025. It is important to note that shoppers are paying an additional ₹10 every trip due to price hikes across key essential categories.

 

Further, the cuts in goods and service tax (GST) rates are expected to reduce the gap between branded and unbranded products.

 

“With macro tailwinds aligning and consumer confidence rebounding, India’s FMCG sector is not just poised for recovery, it is gearing up for a decisive leap into sustained, value-driven growth,” the report added.

 

New categories see growth

 

The December Pulse report further pointed out that this year categories have seen a slower adoption rate. “While last year 16 categories added at least 1 per cent penetration point, this year only 12 categories managed to do so,” it said.

 

To be sure, penetration simply means household reach.

 

One of the fastest-growing categories is hair crème. While in 2023, the category had a penetration of 21 per cent, in the last two years, it has added over 10 per cent penetration points. The other such category is noodles, having added 9 per cent penetration points in the last two years, and are now 77 per cent penetrated, or have reached two-thirds of the country.