India’s retail and FMCG landscape is entering the festive quarter with renewed energy and cautious optimism. The season has triggered a sharp rise in demand across key categories, from oils and dairy to beverages and quick-service dining, as consumers blend traditional celebrations with modern lifestyles. Yet, the industry faced temporary turbulence through September due to the rollout of the new GST slabs, which disrupted trade and supply chains. While FMCG majors reported muted quarterly performance, they remain optimistic about stronger growth in the second half of FY26.
Adding to the positive sentiment, retail inflation eased to an eight-year low of 1.54% in September, leaving scope for another rate cut by the RBI. Meanwhile, the FSSAI’s forward-looking agenda places innovation and trust at the core of India’s evolving food retail ecosystem. On the digital front, a Kearney–Amazon Pay report predicts India’s digital payments could surpass $7 trillion by 2030, reflecting the rise of “Aspirational India.”
Click on the headings below for insights on how these trends are shaping India’s retail landscape…
1. Festive Season Drives FMCG Boom in India: Surge In Demand For Oils, Dairy And Beverages
As India enters its vibrant festive season, the country’s kitchens, dining tables, and social gatherings come alive with renewed energy and with them, the demand for fast-moving consumer goods (FMCG) surges across categories. From cooking oils to dairy, beverages, and even quick-service dining, brands are witnessing a sharp increase in consumption driven by both tradition and evolving lifestyles.
2. FMCG firms witness trade disruption in September, hopeful of growth in second half of FY26
Leading FMCG firms like HUL, Dabur, and Marico saw trade disruptions in September. New GST slabs caused consumers to delay purchases. This impacted revenue in the second quarter. Companies anticipate demand recovery and improved sentiment in the coming months. Lower duties are expected to boost affordability and consumption across markets.
3. GST reset: Supply chain woes hit FMCG business in Q2
FMCG companies have flagged slowdown in sales and impact on profitability in the Sept quarter as markets prepared for the new GST regime, leading to temporary disruptions in supply chain. Distributors and retailers stopped taking new orders to avoid stocking up shelves with products carrying old price tags while consumers deferred purchases to avail the benefits of lower taxes which kicked in from Sept 22.
4. India's retail inflation slows to eight-year low in September, leaving room for rate cut
India's annual retail inflation slowed to an eight-year low of 1.54% in September, government data showed on Monday, as food prices eased, leaving room for the central bank to cut rates one more time when it meets in December. Retail inflation was below a Reuters poll of 1.7% and the lowest since June 2017, when it stood at 1.46%.
5. Building Trust, Driving Innovation: FSSAI’s vision for the future of food retail in India
India's food sector is transforming. FSSAI CEO Rajit Punhani envisions a future built on trust, transparency, and innovation. He highlights the convergence of retail, foodservice, and technology. Consumer demands for personalization and purpose are rising. Digital supply chains and traceability are becoming crucial. FSSAI aims to foster responsible innovation. Retailers and startups can build brands through consumer confidence and loyalty.
6. 'Aspirational India' drives up retail digital payments, says report
India’s digital payments are projected to surpass $7 trillion by 2030, fuelled by aspirational consumers, financial-inclusion initiatives, and ecosystem growth, says a Kearney–Amazon Pay report. UPI remains the main entry point, while credit cards and BNPL options dominate higher-value spends. The study of 6,000 consumers across 120 cities also found the gender gap narrowing, with 89 per cent of women preferring digital modes for online shopping.