India’s FMCG sector is entering 2026 with cautious confidence after a period of uneven consumption and structural resets. Supported by income tax relief, GST reforms, easing inflation and softer commodity prices, industry leaders are betting on a return to high single-digit volume growth, gradual margin recovery and a long-awaited revival in urban demand. While consumption has stabilised following the GST reset, growth remains uneven across categories and price points, prompting companies to recalibrate portfolios and channel strategies.
Policy remains a key focus area. Ahead of the Union Budget, FMCG leaders are pushing for measures that strengthen disposable incomes, revive rural spending, rationalise GST structures and support domestic manufacturing, while reducing compliance complexity and input cost volatility. At the same time, legacy players are accelerating their shift towards direct-to-consumer brands to capture premium, niche and digital-first demand, reflecting changing consumer tastes.
Consolidation is also picking up pace. Reliance Consumer’s acquisition of global personal care brands and Godrej Industries’ active hunt for consumer-facing deals underline growing ambition. With lessons from a weather-hit summer behind them, companies are now reworking production, inventory and marketing plans to ensure demand stays resilient through 2026.
Click on the headings below for insights on how these trends are shaping India’s retail landscape…
1. FMCG Sector Bets on High-Single-Digit Growth, Margin Recovery in 2026
As the Indian FMCG sector navigates a period of recalibration after years of uneven consumption, industry leaders are entering 2026 with renewed optimism. Backed by supportive policy measures such as income tax relief, GST reforms, benign commodity prices, and easing inflation, the sector is eyeing a return to high single-digit volume growth, improved margins, and a long-awaited revival in urban demand.
2. Inside FMCG’s Budget Wishlist: Consumption, Costs And Capability
With consumption showing early signs of recovery but margins still under pressure, India’s fast-moving consumer goods (FMCG) sector is looking at the upcoming Union Budget as a critical lever to sustain demand and improve cost competitiveness. Industry leaders are calling for measures that boost disposable incomes, revive rural spending, rationalise goods and services tax (GST) structures and support domestic manufacturing, even as they seek policy clarity to manage input volatility and ease the compliance burden.
3. FMCG demand stabilises after GST reset, but recovery remains uneven
Consumption in India’s fast-moving consumer goods (FMCG) sector has continued to grow through November and December, but the nature of growth has changed after the rollout of goods and services tax (GST) 2.0, according to industry data shared by market trackers.
4. FMCG’s old guard turns to D2C as consumer tastes shift
India’s traditional FMCG companies are increasingly acquiring and investing in direct-to-consumer (D2C) brands to stay relevant as consumer preferences move toward niche, premium, and online-first products. Legacy players are using these deals to diversify beyond slow-growing core categories and tap faster-expanding segments.
5. Reliance Consumer acquires global rights of Brylcreem, Toni & Guy, Badedas
Reliance Consumer Products Ltd (RCPL), the FMCG arm of Reliance Industries, has secured global rights to international personal care and beauty brands including Brylcreem, Toni & Guy, Badedas (and related portfolio), aiming to expand their presence in India and overseas. The company plans to grow these heritage brands as part of its broader push into the personal care market alongside robust FMCG revenue growth.
6. Godrej Industries looking for acquisitions in consumer sector: Nadir Godrej
Godrej Industries is actively scouting acquisitions in the consumer goods and animal feed sectors, even as high valuations make deals challenging, according to Chairman Nadir Godrej at the World Economic Forum in Davos. Dealmaking in India’s consumer market has surged recently, and Godrej is positioning to capture growth opportunities despite competitive pricing.
7. Consumer goods companies making sure sales don't cool off this summer
After a rain-washed 2025 summer that more than halved season-dependent product sales, Indian consumer goods companies are revamping strategies - adjusting production cycles, managing inventories better, and shifting marketing timelines - to capture stronger demand in the 2026 summer season. They’re also broadening product mixes and spreading advertising spends earlier to hedge against weather volatility and avoid stock pile-ups.
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