Did You Know: What’s up with FMCG in February

Did You Know: FMCG tarot cards reveal the Ace of Pentacles 
PackMan has begun reading tarot cards as a hobby; as it turns out, this helps in reducing one’s screentime. As per PackMan’s tarot card reading for the Indian FMCG sector, it’s a green light for growth. The sector is experiencing volume recovery following the GST 2.0 reform as the effects of the reform reach the retail level. As kirana stores worked to clear older inventory, new product packs featuring lower price points or increased grammage hit the shelves, sparking a volume turnaround after several subdued quarters.

It seems the Ace of Pentacles card is extending to rural India. Leading executives are now prioritising rural markets, where the GST rationalisation is expected to double growth rates from 4-5% to 8-9%. Furthermore, the increased affordability is driving a shift in consumer behaviour: for instance, Marico reported that shoppers are moving away from unbranded or loose food items toward packaged goods, while the personal care segment is seeing a shift from mass-market products toward more aspirational, premium brands.

Did You Know: Britannia’s profits surge
Bringing in the Ace of Pentacles’ energy, Britannia Industries has reported a 17.14% increase in consolidated net profit, reaching INR 682-crore for the third quarter of FY26. The company navigated a stabilisation phase following the GST 2.0 reforms, which slashed taxes on biscuits from 18% to 5%. PackMan noted that while October served as a transition month for the industry, Britannia saw a growth spurt of 12% in November and December, driven by the rollout of new product packs featuring increased grammage and restored coinage price points (INR 5 and 10).

Did You Know: FMCG giants are at the ICC Men’s T20 World Cup
As an avid cricket fan, not only is PackMan at cricket stadiums, but so are FMCG brands. Wonder what they are doing at the stadiums? Well, marked by the Ace of Pentacles growth, major Indian consumer goods manufacturers are scaling their marketing operations. 

As the inflationary pressure on raw materials eases, companies are shifting recovered gross margins into advertising and promotional budgets. This reinvestment is timed to capitalise on a projected surge in consumer demand driven by the summer season and high-reach media events (no points for guessing), like the T20 World Cup.

PackMan notes that the financial pivot is supported by agricultural commodities such as wheat and maize, which have seen price drops of 11% and 17% respectively, while beverage inputs like cocoa and coffee have plummeted by up to 48%. Furthermore, a 7% sequential dip in milk prices has resulted in balancing bottom-line expansion with high-decibel brand building. Our in-house gyaani told PackMan that Dabur intends to reinvest the majority of its margin gains into advertising, retaining only about a quarter for operating margin growth.
 
Did You Know: If HUL is packing profits?
Hindustan Unilever Limited (HUL) reported a 121% surge in consolidated net profit to INR 6,603-crore for the third quarter of FY26. However, as per PackMan’s readings, this jump was almost entirely due to a one-time exceptional gain of INR 4,611-crore following the demerger of its ice cream business, Kwality Wall’s.

Our in-house gyaani shares that stripping away these one-offs, the company’s core actually saw a 30% decline in net profit to INR 2,118-crore, as margins were weighed down by an INR 5,760-crore loss related to new labour codes and intense competitive pressure.

Despite the bottom-line volatility, HUL showed signs of demand recovery with an underlying volume growth of 4% and a 6% rise in revenue to INR 16,441-crore. 

The company is leaning into premiumisation, with the beauty and wellbeing segment leading the charge at 11% growth. This period also marked a portfolio cleanup: HUL moved to acquire 100% of the health brand OZiva while exiting its underperforming joint venture in Wellbeing Nutrition.

Did You Know: FMCG giants step foot in the healthy food market
PackMan has been noticing a trend. First, Marico signed to acquire 60% stake in Cosmix Wellness,  a digital-first functional wellness brand at an equity valuation of INR 373-crore. The brand offers protein powders, superfood blends, and functional foods like plant-protein pancake mixes and plant-protein bars. 

Second, Reliance Consumer Products (RCPL) has acquired Chennai-based Southern Health Foods for INR 156-crore. The deal integrates the flagship Manna brand into Reliance’s portfolio, providing RCPL with a product line encompassing millet-based staples, health mixes, oats, and specialised baby foods. 

The move, according to PackMan, reflects a broader 2026 industry trend where FMCG giants acquire players to satisfy rising consumer demand for healthy food. 

PackMan unpacks what this means for the packaging industry
Packaging professionals, here is your tarot reading by amateur tarot-reader, yours truly, PackMan: The resurgence of the Indian FMCG sector is set to trigger a technical transformation within the packaging industry. As volume recovery accelerates due to GST 2.0 and cooling inflation, packaging manufacturers are likely to see an increase in demand for high-speed, automated production lines. 

The tarot cards further reveal that the industry is pivoting toward Form-Fill-Seal (FFS) technology that can handle the influx of low-unit-price (LUP) packs, such as the INR 5 and 10 biscuits from Britannia or personal care sachets from HUL. Technically, this requires machinery capable of higher throughput rates while maintaining airtight seals for the increased grammage now offered to consumers.

As brands like Marico and Reliance Consumer Products acquire health-focused players like Cosmix and Manna, the packaging brief has evolved from basic containment to high-performance protection. These products, often rich in millets and superfoods, are sensitive to moisture and oxidation, necessitating a technical move toward high-barrier flexible laminates with low moisture vapour transmission rates. 

The industry is embracing a premiumisation aesthetic, where matte finishes, spot varnishes, and metallic foils are being used on secondary packaging to help brands stand out in the competitive urban and quick-commerce landscapes.