India’s FMCG and retail sector continues to show resilience despite a challenging macroeconomic backdrop. Goldman Sachs has identified FY27 as potentially the strongest year for FMCG growth since FY23, driven by steady demand for consumer staples and the ability of larger players to gain market share through scale and operating efficiencies. This optimism is echoed across the industry, where demand for everyday essentials and personal care products remains stable despite geopolitical tensions, inflationary pressures and supply chain uncertainties.
At the same time, companies are adapting to rising input and logistics costs linked to the Iran conflict by increasing prices, reducing pack sizes and tightening operational spending. Marico’s expansion into coconut-based beauty products highlights how brands are seeking growth through innovation and natural ingredient-led offerings aimed at mass-market consumers. Meanwhile, distributors are urging FMCG companies to improve margins to sustain rural supply networks, warning of potential stock disruptions. In parallel, advertising investments are rapidly shifting towards quick-commerce platforms, which are emerging as powerful retail media channels that influence discovery, conversion and purchase within a single ecosystem.
Click on the headings below for insights on how these trends are shaping India’s retail landscape…
1. Goldman Sachs sees FY27 as best year for FMCG growth since FY23, bets on consumer staples
Arnab Mitra, India Consumer Analyst at Goldman Sachs, said consumer staples are likely to outperform small-ticket discretionary categories as inflation pressures household budgets. The brokerage also expects larger FMCG companies to gain market share and benefit from operating leverage despite concerns over crude oil prices and monsoon conditions.
Despite geopolitical turmoil and inflation, domestic consumption of essentials and personal care products remains resilient. Company executives express optimism for demand sustenance but advise a cautious approach for the next two to three quarters due to ongoing inflationary pressures and supply chain disruptions.
3. Inside Marico's plan to win India's 80-90 crore consumers with a coconut-powered beauty ecosystem
Marico is making a major growth move by creating a coconut-based beauty range for millions of Indian consumers. The company has launched Parachute Advansed Protein Shampoo, entering the large shampoo market. This strategy targets the vast majority of India's population, aiming to deepen its presence beyond hair oils. The company believes in the growing consumer preference for natural ingredients.
4. India Inc hikes prices, shrinks packs as Iran war squeezes margins
Indian businesses face mounting pressure from soaring oil, freight, and insurance costs. Companies are increasing prices and reducing product sizes to protect profits. Many are also cutting operational expenses like advertising and travel. Supply chains are being reconfigured to manage disruptions.
5. 'Give us margin support or risk rural stockouts': Distributors warn India's FMCG giants
FMCG distributors are asking major brands for better margins, saying rising costs have made rural distribution less profitable. They warn that without additional support, rural markets could face stock shortages and supply disruptions.
6. Quick commerce ad revenue to hit ₹4,900 crore as FMCG funnel collapses
FMCG ad spending is shifting closer to the point of purchase: quick-commerce apps like Blinkit, Zepto, and Instamart are becoming media channels, not just delivery platforms. Brands are using retail-media data to drive discovery, conversion, and measurement in one loop, while mass media still builds broader brand awareness.
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