Kantar Worldpanel reports uneven FMCG growth

Kantar Worldpanel’s June 2025 edition of the FMCG Pulse report shows that despite positive economic indicators, fast-moving consumer goods (FMCG) growth in India has slowed.

While food inflation dropped from nearly 11% in October 2024 to 2.7% by March 2025, and GDP growth for Q4 FY 2024-25 is expected to reach 7.0%, FMCG growth remains subdued. The consumer confidence index rose to 95.5 from 93.7 in January, and the future expectation index also improved.

FMCG growth by manufacturer type

FMCG purchases for in-home consumption in Q1 2025 grew at 3.5%, the slowest since Q4 2022. The same quarter in 2024 saw growth of 5.5%. For the year ending March 2025, growth stood at 4.2%, compared to 6.6% the year prior.
Urban India outpaced rural areas, with 4.4% growth versus 2.7% in rural areas. This trend continued for the third consecutive quarter. At the annual level, urban growth remained ahead at 4.4%, compared to rural’s 4%.

Within urban markets, unbranded products grew at 8.4%, while listed companies grew at just 2.1% and the rest of the branded market at 3.8%. In rural India, listed brands grew at 5.1%, while unbranded products rose only 2.3%. The report attributes rural growth in listed brands to their stronger distribution and loyalty networks.

Digital shopping has not significantly changed market shares, but mobile-based advertising is influencing urban shoppers’ perceptions of packaging and branding. These shoppers are becoming more brand agnostic and value quality, aesthetics, and story more than price. Despite a shift toward unbranded products, the price per kilogram of FMCG has risen by INR 8 year-on-year.

Out-of-home (OOH) and in-home data combined show category growth at 2.4% in urban areas. Biscuits declined in OOH but grew modestly in-home. Carbonated and milk-based drinks performed better in-home, while juice drinks grew more in OOH.

Washing liquids grew 2.7 times since FY23, adding 24 million households. Ready-to-cook mixes also doubled in volume, while ready-to-eat foods lost half their volume in two years. Breakfast cereals grew, except cornflakes, which declined due to low innovation and shifting preferences.

Shopping trips have stabilised at 156 per household per year, with average pack sizes increasing by 15 grams. This, along with premiumisation, may signal stronger urban growth ahead, with rural recovery possible in the latter half of the year.