Did You Know: The Indian Summer and FMCG
PackMan has been observing what the stars whisper. The stars have revealed what the Indian FMCG sector has in store for the packaging fraternity.
11 May 2026 | By Jiya Somaiya
PackMan knows something you don't
Did You Know: FMCG companies are shrinking their packs
WhatPackaging? readers are aware that PackMan maintains many interests and hobbies. Over the summer months, PackMan has been stargazing. The stars have revealed that the inflationary landscape has left fast-moving consumer goods (FMCG) companies in a difficult position, forcing a shift toward calibrated price increases to protect shrinking margins. Crude oil-linked inflation and geopolitical disruptions are driving up the cost of raw materials and fuel. This has resulted in industry giants like HUL, Dabur, and Nestle bracing for a fresh round of hikes.
PackMan further overheard that to maintain sales volumes while managing cost pressures, FMCG companies are increasingly resorting to grammage reduction (or shrinkflation), particularly for popular low-unit-price points like the INR 5, INR 10, or INR 15 stock-keeping units (SKUs). By slightly reducing the weight of the product inside the pack while keeping the retail price constant, brands can absorb rising costs without alienating price-sensitive consumers.
Did You Know: The beverage industry is changing
Summer months call for thanda thanda F&B consumption. Well, this thanda thanda consumption is not new in India; however, there’s a new trend in town. PackMan is increasingly noticing how the beverage industry is undergoing a Go Zero transformation as consumer demand for low-sugar and zero-calorie drinks shifts from a niche trend to the new market baseline. Multinational giants like Coca-Cola and PepsiCo, aggressive start-ups, and celebrity-backed brands — all are now focusing on healthy, rather healthier formulations. Major players are reporting portfolio shifts; for instance, Coca-Cola India’s zero-sugar offerings now contribute double-digit sales figures, while PepsiCo’s leading bottler, Varun Beverages, saw low and no-sugar products account for 63% of its consolidated sales volume in the most recent quarter.
Did You Know: Britannia is standing on business
PackMan’s stargazing hours have revealed that Britannia Industries reported a strong financial performance for the final quarter of FY26, with consolidated net profit rising over 21% to reach INR 679.68-crore. Total revenue for the quarter grew by approximately 6.5% to INR 4,718.92-crore. This is considering the company navigated rising expenses and supply chain volatility. For the full financial year, Britannia’s profit surged by 16.5%, bringing the annual total to over INR 2,537-crore on an income of INR 19,375.62-crore.
The company’s growth was largely driven by its digital expansion and the success of its premium product mix. eCcommerce now accounts for 6% of Britannia’s domestic business, supported by online-exclusive launches. PackMan’s gyaani friend shared that despite these gains, the company’s growth slowed slightly in March due to international supply disruptions caused by the ongoing conflict in West Asia.
Did You Know: Dabur sees growth
The stars are favouring the FMCG giants, it seems. Dabur India, too, reported a strong finish to the 2025-26 financial year, with fourth-quarter consolidated net profit rising 16% to INR 362-crore. Despite navigating geopolitical tensions in the Middle East, the company’s consolidated revenue for the quarter grew by 7.3% to INR 3,038-crore.
The domestic market served as a major growth engine, with the Indian FMCG business expanding by 9.5% and recording healthy volume growth of 6%. Notably, rural demand continued to outpace urban consumption, although the growth gap between the two narrowed as the year progressed. For the packaging fraternity, this divergence is a clear signal of SKU proliferation; while rural markets demand high-volume production of low-unit packs (LUPs) and sachets, the urban recovery — driven by a 54% jump in quick commerce — demands family packs and premium, eCommerce-ready secondary shippers simultaneously.
Did You Know: Emami adds to cart
Emami has bolstered its digital-first ambitions by acquiring a 60% stake in IncNut Digital, the parent company of personalised skincare leaders Vedix and SkinKraft. The INR 321-crore deal marks the Kolkata-based FMCG major’s sixth direct-to-consumer (D2C) acquisition in recent years, following its recent takeover of Axiom Ayurveda. This strategic pivot aims to build a digital ecosystem spanning beauty, wellness, healthcare, and pet care, with the company targeting an INR 3,000-crore digital portfolio within the next five years.
The acquisition is centred on the rising consumer demand for hyper-personalisation in the beauty and wellness segments. Vedix offers Ayurvedic formulations tailored to individual needs, while SkinKraft provides science-led, dermatology-backed solutions. The deal structure includes performance-linked adjustments over the next 24 months, with Emami planning to acquire the remaining stake in IncNut over the next four-and-a-half years.
The stars whispered to PackMan about polymers, precision, and personalised pouches. Based on the whispers, here is what the Indian packaging fraternity needs to prepare for:
Addressing the elephant in the room (Shrinkflation)
As giants like HUL and Britannia resort to grammage reduction to combat inflation, the pressure falls squarely on form-fill-seal (FFS) machine accuracy. When an INR 10 biscuit pack drops by 5-grams, the packaging must be recalibrated to prevent slack fill (the presence of too much air), which consumers perceive as a value loss.
We will likely see a surge in demand for multi-head weighers and high-precision dosing systems that can handle smaller quantities at higher speeds without compromising seal integrity.
Zeroing in on the sugar
The Go Zero beverage boom is not just a formulation change, but also a chemical one. Sugar often acts as a preservative and provides mouthfeel stability. As brands move toward volatile natural sweeteners like Stevia and Monk Fruit, packaging must work harder. This means a shift toward higher-barrier PET preforms and opaque laminates that protect sensitive non-sugar ingredients from UV degradation.
Additionally, with Varun Beverages seeing a 63% volume jump in this segment, we can expect a massive order book for aseptic liquid packaging and specialised cold-chain secondary transit cases.
The death of the generic box
Emami’s acquisition of IncNut (Vedix and SkinKraft) signals the arrival of hyper-personalisation. For packaging solution and service providers, this means that the era of one million identical boxes is fading. We are entering the age of digital corrugation and short-run folding cartons.
D2C brands require unboxing experiences — think high-end tactile finishes, spot UV, and variable data printing (VDP) where every box might carry a different consumer's name or a bespoke Ayurvedic regimen.
The crude oil biz and buzz
With crude oil-linked inflation squeezing margins, the industry is at a crossroads regarding flexible packaging.
We are going to see a push toward downgauging (using thinner films) and mono-material laminates that are easier to recycle and often more cost-effective than complex multi-layer structures. Packaging procurement managers will hunt for yield improvement — getting more impressions out of every kilogram of plastic.
Pro-tip from PackMan
The Indian packaging industry must move from being a vendor to a solution partner. Whether it is helping Dabur navigate rural distribution with sturdier, low-cost secondary shippers or helping Emami scale its D2C aesthetics, the winners of 2026 will be those who can deliver premium looks at shrinkflation costs.