India’s retail and FMCG landscape continues to shift as early signs point to recovery ahead. FMCG volume growth remained uneven in Q2FY26, but analysts expect a clearer revival over the next two to three quarters, supported by GST 2.0 reforms, easing inflation, interest rate cuts and a favourable monsoon.
October already reflected this momentum, with both urban and rural markets seeing improved demand and stronger traction in dairy, personal care and branded essentials. Quick commerce continues to expand, yet household baskets remain dominated by legacy FMCG giants. At the same time, brands are being pushed to focus on salience over differentiation as consumers reward consistency, authenticity and experience-led value.
Beyond the metros, rising incomes and infrastructure upgrades are driving a surge in retail development across Tier II and III cities. Meanwhile, creator-led shopping is emerging as a powerful force shaping what consumers buy and how businesses grow.
Click on the headings below for insights on how these trends are shaping India’s retail landscape…
1. FMCG Volume Recovery Likely In Next 2-3 Quarters, Says Report
Highlighting that the fast-moving consumer goods (FMCG) topline growth remained mixed in the second quarter of the current financial year (Q2FY26), a report has stated that the volume recovery is likely to be seen in the next two to three quarters. A report by Axis Direct revealed that a pick-up is expected only from the second half of FY26 on account of recent goods and services tax (GST) 2.0 reforms, easing inflation, interest rate cut and above-normal monsoon.
2. Demand for FMCG revives in October on GST boost
Urban growth (6.3%) saw a sharp revival, narrowing the gap with rural growth (7.1%). Key categories like dairy (18.6%) and personal care (11.8%) led the surge, with experts predicting a structural shift from unbranded to branded consumption due to tax rationalization.
3. FMCG giants dominate q-comm baskets
Quick commerce may be adding delivery speed, but it isn’t changing who controls the household basket. New platform data shows that traditional FMCG players — not digital-first brands — continue to command the bulk of consumer spending on daily-use staples across apps such as Blinkit, despite an explosion of choice.
4. FMCG brands must shift focus from differentiation to salience to crack rural India: Kantar
India’s brand landscape in 2025 is defined by a widening performance gap: overall brand value grew a modest 6 percent, yet the fastest-rising brands surged by 42 percent. In a year of softened growth, consumers have become more selective, rewarding brands that deliver either immersive experiences or long-term consistency as experience-driven value, AI-enabled usability, and authenticity are emerging as the biggest drivers of brand trust.
5. How rising incomes, infra push are fueling retail expansion in Tier II, Tier III cities
India’s retail boom is no longer confined to metros as smaller cities are rapidly rising as the new growth drivers for the country’s retail real estate sector. According to Cushman & Wakefield's Q3 2025 Retail Market Beat, leasing volumes in Tier II and Tier III cities have surged this year, signalling strong retailer confidence and shifting consumer behaviour. It projects India's real estate market could touch $10 trillion by 2047, with a major share of future retail development expected in these smaller cities.
6. India’s shopping spree now runs on the people you follow, influencing choices & business
India is embracing shopping from friends and favourite personalities. Creators are now unofficial personal shoppers, influencing millions. Major digital platforms are investing heavily in this creator-led commerce. This trend is boosting sales and creating new income streams for influencers across the country.