Weekly FMCG Update: Energy drinks surge, Apple expands, margins tighten

Energy drinks become the new cola for Indian consumers
Energy drinks are now mainstream in India, with consumption rising from under 20-million litres in 2018 to over 570-million litres in 2023. Affordable PET bottles and cans, such as PepsiCo’s Sting and Coca-Cola’s Charged by Thums Up, are fuelling mass appeal across urban and rural areas. The category is expected to surpass 600-million litres this year, signalling massive packaging and distribution growth.

Distributors to act against FMCG firms over deep eCommerce discounts
India’s apex distributors' body, the All India Consumer Products Distributors Federation (AICPDF), plans a non-cooperation movement against FMCG companies offering heavy discounts online. They argue that such pricing on quick commerce and eCommerce platforms harms general trade. Firms that fail to respond to the call for fairer practices may see their products dropped from offline shelves, intensifying the offline-online pricing debate in the sector.

Apple eyes USD 40-billion in iPhone production from India by FY26
Apple aims to ramp up iPhone production in India to USD 40-billion by FY26, doubling its export value to USD 35-billion. The move would enable Apple to meet a majority of US demand and all local demand from Indian plants.

Tequila gains favour as India’s gin boom slows
Agave-based spirits such as tequila and mezcal saw a 36% rise in volume in 2024, far outpacing gin, which inched up by just 1%. Though whisky continues to lead the market, tequila has carved out a strong niche in upscale cocktail culture. With brands like Don Julio and Patron growing their footprint in India, younger drinkers are increasingly exploring premium and novel spirit options.

Marico counts on consumption revival for stronger FY26 margins
Marico is projecting strong performance in FY26, anticipating double-digit growth in both revenue and profit as demand picks up and margins improve, particularly in its food and digital-first segments. Although the March quarter saw some margin pressure, the company remains confident. Analysts have raised earnings forecasts by 5–9% for the next two years, pointing to better cost management and a more robust sales outlook.

Godrej Consumer returns to profit but margin concerns remain
Godrej Consumer Products posted a profit before tax of INR 670-crore in Q4 FY25 but faced shrinking margins amid higher input costs and subdued urban demand. Adjusted net profit declined 25% year-on-year, with gross margins dropping by 360 basis points. Rising palm oil prices and increased advertising expenses have added to cost pressures, prompting investor concerns about the company’s profitability outlook.