The early arrival of monsoon rains has brought much-needed optimism to India’s FMCG sector. After a challenging FY25, industry leaders are hopeful that improving rural sentiment, driven by better farm incomes, will help offset the slow recovery in urban consumption and reignite demand in the ₹5-lakh crore market.
Tata Consumer Products is positioning itself for global expansion with a strong focus on India’s economic growth and evolving Gen Z preferences. By investing in health-oriented products, digital-first strategies, and regional market expansion, the company aims to emerge as a resilient player amid global uncertainties.
In a mixed earnings season, ITC stood out by posting higher profits despite sector-wide pressures such as muted urban demand and soaring input costs. While competitors like HUL and Nestlé India struggled in the fourth quarter, ITC’s performance suggests a strategic divergence worth watching.
Reliance Consumer Products is doubling down on India’s value-driven consumer base, eyeing deeper penetration into the kirana ecosystem. With an ambitious plan to serve 600 million shoppers, Reliance is offering better trade margins to strengthen its hold across the country’s fragmented retail network.
Meanwhile, retail sales in India showed a modest 4% year-on-year growth in April 2025, according to the Retailers Association of India. North and West India led this momentum, indicating regional variance in consumer confidence.
In brand news, The Lego Group made a colourful debut in Indian retail with its first certified store in Gurugram, and more locations in the pipeline — a sign of international brands growing bullish on Indian consumer potential.
Click on the headings below for insights on how these trends are shaping India’s retail landscape…
1. Early rains bring cheer to FMCG companies
An early onset of monsoon in India will have a positive impact on farm incomes and rural demand, top executives at some of the country’s leading fast-moving consumer goods (FMCG) companies have said. Coming at a time when urban demand is recovering slowly, the prospect of rural demand gaining momentum is a plus for the Rs 5-lakh crore domestic FMCG market, which has had a difficult FY25, executives said.
2. Tata Consumer bets on India’s growth and Gen Z tastes to power global FMCG ambitions
Amid global economic uncertainty, Tata Consumer Products is betting on a diversified strategy of digital innovation, health-focused product development and aggressive market expansion in India to drive its next phase of growth.
3. ITC bucks FMCG trend, posts higher profit
Its peers on the other hand, including Hindustan Unilever and Nestle India had reported weaker fourth quarter results due to continued subdued urban demand as well as a sharp and persistent uptick in input costs including palm oil, coffee among other.
4. Reliance targets 600 million Indian shoppers with kirana-led FMCG plan
Reliance Industries is focusing its fast-moving consumer goods (FMCG) strategy on India’s 600 million value-conscious consumers and aims to strengthen partnerships with local kirana stores by offering higher trade margins, said T Krishnakumar, Director of Reliance Consumer Products Ltd (RCPL).
5. India’s retail sales records 4% YoY growth in April 2025: RAI Survey
Retail sales in India experienced a 4% growth in April 2025 compared to the sales levels during the same period in April 2024, Retailers Association of India (RAI) said in its latest edition of its Retail Business Survey. Regional data shows that North and West India recorded the highest year-on-year growth at 6% and 5% respectively.
6. The Lego Group launches first certified-store in India
The Lego Group on Friday launched its first certified store in India at Ambience Mall, Gurugram, in collaboration with the Ample Group. The Gurugram store will be followed by a second launch at Bengaluru’s Brigade Orion Mall in June, with more stores planned across the country in the coming years.