India FMCG Market

India FMCG Market 2024, Size and Share:

The India FMCG market size was valued at USD 245.39 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 1,108.48 Billion by 2033, exhibiting a CAGR of 17.33% from 2025-2033. Maharashtra dominates the India FMCG market share, driven by its large urban population, high disposable income levels, extensive retail network, robust infrastructure, and strong demand for packaged goods.

The India FMCG market growth is driven by rapid urbanization and rising disposable incomes, particularly in urban and semi-urban areas. As more consumers adopt modern lifestyles, the demand for convenience-driven products like packaged foods, beverages, and personal care items is surging. Moreover, the expanding organized retail and e-commerce platforms are providing easy access to FMCG (fast-moving consumer goods) products, driving the market demand. Additionally, government initiatives such as rural electrification and the development of infrastructure are increasing the demand for low-cost, high-quality FMCG goods, which is supporting the market growth. For instance, the Production-Linked Incentive Scheme for the Food Processing Industry (PLISFPI) has allocated Rs. 10,900 crore (approximately USD 1.3 billion) to boost production and exports in the sector. Additionally, the growing demand for branded products driven by shifting consumer preferences is playing a key role in the market's growth.

Concurrently, ongoing technological advancements and digitalization are revolutionizing the FMCG sector, enabling companies to target diverse demographics effectively. In addition, the rise of direct-to-consumer (D2C) channels, supported by internet penetration and smartphone usage, is providing an impetus to the market. Furthermore, increasing awareness of health and wellness has fueled the demand for organic and natural products, driving the market forward. For instance, the advancements in e-commerce have played a crucial role in the expansion of the FMCG market, as well as providing better connectivity between urban and rural markets. Global players entering the market and investing in localization strategies are enhancing competition and innovation, which is boosting the market demand. Apart from this, favorable government policies, including GST and agricultural reforms, have streamlined operations, thereby propelling the market forward.

India FMCG Market Trends:

Rising Demand for Health and Wellness Products

Awareness about health and the health-conscious lifestyle is one of the major trends in the India FMCG market demand. Customers are demanding healthier products like organic foods, natural products for body use, and low-sugar products. The target of health consciousness concerning immunity, nutrition, and sustainability is creating demand for healthier products such as fortified food items and ayurvedic products. Manufacturers in the FMCG sector have been adapting to these changes through diversification of their product offerings and modification of their product’s ingredients. This trend is also making customers demand more environmentally friendly packaging solutions, including information about them, which is fostering the market growth.

Growth of E-Commerce and Digital Platforms

The rapid growth of e-commerce is reshaping the India FMCG market outlook. For example, the Open Network for Digital Commerce (ONDC) seeks to liberalize e-commerce or make it more competitive, open, fair, innovative, and free from the dominance of specific platforms. In addition, consumers are moving to online stores due to the convenience and availability of various products in internet stores. Large-scale FMCG firms are adopting digital initiatives at a large scale to personalize offerings and improve client satisfaction through data analytics and artificial intelligence (AI). The D2C channels have also allowed small brands to cut through intermediaries and reach out to customers directly. It is also underlined by the constant expansion of digital payment systems and hyper-local delivery networks to make online shopping even more convenient, thereby catalyzing the market growth.

Shift Toward Premiumization and Niche Products

The India FMCG market trends are transforming due to the rising disposable incomes, as they are allowing Indian consumers to show a preference for premium and niche FMCG products. Products like gourmet food, luxury skincare, fine alcoholic and non-alcoholic beverages are fast growing and preferred by the urban and the millennial. This trend has been influenced by a desire for improved standards of living, globalization, and the growing acceptance of the cost of quality and differentiation. FMCG companies are leveraging on this opportunity by making new products of higher price category and emphasizing branding and product descriptions. For instance, Unilever stated that India is one of its focuses because of potential growth in consumption and economic growth in the next few years. Currently, the company is organized into four large divisions consisting of 30 strategic brands in 24 countries, the firm wants to strengthen its operations in India. Also, specific positions such as vegan, gluten-free, or cruelty-free products are developing since consumers value such products differently now, aiding in the market expansion.

India FMCG Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the India FMCG market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized based on product type, demographics, and sales channel.

Analysis by Product Type:

• Food and Beverages 
  • Juices and Drinks
  • Tea and Coffee
  • Fresh Food
  • Others
• Personal Care and Cosmetics 
  • Body Care
  • Hair Care
  • Oral Care
  • Skin Care
  • Baby Care
• Health Care 
  • Feminine Care
  • Over the Counter (OTC)
  • Others
• Home Care 
  • Cleaning Products
  • Fragrance
  • Others
• Others

The food and beverages (F&B) sector is the largest segment of the FMCG market in India, fueled by changing consumer preferences and increasing disposable incomes. Higher consumption of processed foods, new-generation convenience foods, and ready-to-eat (RTE) foods from the urban and semi-urban areas has fueled the market growth. Organic, fortified, and functional beverages are also other important factors that are being fueled by health-conscious consumers. This segment is further backed by the growth of organized retailing, e-tailing, and rural markets. Moreover, improvements in the knowledge of nutrition and food hygiene along with product diversification have established F&B as a major and most active category in the Indian FMCG sector, thus impelling the market growth.

Analysis by Demographics:

• Urban
• Rural

The urban segment dominates the India FMCG market share, driven by higher disposable incomes, changing lifestyles, and increased consumption of branded and premium products. The consumers in the urban areas have a convenience motive hence the packaged foods, personal care products, and home care products’ demand. The expansion of modern trade and e-tailing has also added more convenience to FMCG products in urban markets. Also, awareness of global trends and the increase in the importance of the health and wellness market necessitate further differentiation and development of the market. This segment continues to be a strong growth driver and has a strong contribution to the growth of the India FMCG market.

Analysis by Sales Channel:

• Online
• Offline

The offline segment is the largest distribution channel in India FMCG market, driven by the extensive reach of traditional retail formats such as kirana stores, supermarkets, and hypermarkets. These channels dominate due to their ease of access, personalized customer relations, and already existing coverage of both the urban and rural markets. Supermarkets and hypermarkets especially in urban areas play a vital role in this regard as they provide consumers a full package of FMCG products in one place. Neighborhood stores are trusted and convenient stores for people, which also support this segment’s longevity. Apart from this, e-commerce is a new-age factor in the Indian FMCG market, but the offline platform is still relevant to meet consumer requirements, which is fueling the market demand.

Regional Analysis:

• Maharashtra
• Tamil Nadu
• Uttar Pradesh
• Gujarat
• Karnataka
• West Bengal
• Rajasthan
• Andhra Pradesh
• Telangana
• Madhya Pradesh
• Delhi NCR
• Punjab
• Haryana
• Others

Maharashtra is the largest region in India FMCG market, driven by its thriving urban centers like Mumbai, Pune, and Nagpur, which have high purchasing power and a large consumer base. The state’s robust retail infrastructure, including supermarkets, hypermarkets, and traditional retail outlets, facilitates the widespread distribution of FMCG products. For instance, quick commerce applications have emerged as an important source of revenue for FMCG firms, accounting for around 35% of their e-commerce sales. Maharashtra’s growing middle class, coupled with rising disposable incomes and changing lifestyles, is fueling demand for both premium and essential goods. Additionally, the state’s well-established manufacturing base and strong presence of multinational and local FMCG companies contribute significantly to its dominance in the market.

Competitive Landscape:

The competitive landscape of the global India FMCG market is marked by intense competition among both multinational and local companies. Global players dominate key sectors such as food and beverages, personal care, and home products, leveraging their extensive distribution networks, established brand value, and the ability to scale operations across India’s varied regions. On the other hand, local companies maintain a strong foothold by offering products tailored to Indian consumer preferences, particularly in health-conscious categories. The growth of e-commerce has also introduced new dynamics, enabling smaller, direct-to-consumer brands to challenge larger players. Innovation, strategic pricing, and customer loyalty are critical to staying competitive in this fast-evolving market, with companies continuously adapting to demand for convenience, premium offerings, and sustainable solutions. As urbanization accelerates and the middle class expands, competition in the FMCG market continues to grow stronger.

The report provides a comprehensive analysis of the competitive landscape in the India FMCG market with detailed profiles of all major companies, including:

• AB InBev India (Anheuser-Busch InBev SA/NV)
• Amul
• Asian Paints Ltd.
• Britannia Industries Limited
• Coca-Cola India (The Coca-Cola Company)
• Colgate Palmolive (India) Ltd (Colgate-Palmolive Company)
• Dabur Ltd.
• Godrej Consumer Products Limited
• Hindustan Unilever Limited (Unilever Plc)
• ITC Limited
• Marico Limited
• Nestlé India Limited (Nestlé S.A.)
• Patanjali Ayurved Limited
• PepsiCo (India) Holdings Pvt. Ltd. (PepsiCo Inc.)
• Procter & Gamble Hygiene and Health Care Limited (The Procter &Gamble Company)

Latest News and Developments:

• In December 2024, Jubilant Bhartia Group entered into a deal to acquire a 40% controlling stake in the HCCB, the biggest bottler of Coca-Cola in the Indian market. This step also marks a new foray for Jubilant Bhartia in the high-growth beverages segment of India.
• In August 2024, ITC Limited introduced a new brand of organic tea targeting health-conscious customers in the market. This initiative is designed to target the extensive market of around 10 million households.
• In February 2024, ITC Limited declared to acquire 47% of the stake in Prataap Snacks, which is the company behind the famous Yellow Diamond Chips. This is a strategic move that will see ITC strengthen its position in the FMCG market in India.
• In September 2023, PepsiCo (India) unveiled new products in the Indian region including ‘Kurkure Chaat Fills’ that are intended to capture the desi Indian palate to increase its market share in this locale.

India FMCG Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the India FMCG market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the India FMCG market.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the India FMCG industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.