FMCG sector poised for strong volume growth next year: report
Looks forward for a high single-digit growth, improvement in margin, says report
image for illustrative purpose
New Delhi: Expecting 2026 to be a 'favourable year', with policy tailwinds as tax reliefs and GST reforms, along with benign commodities, the Indian FMCG industry looks for a high single-digit volume growth, improvement in margins and comeback of the urban demand, which is a vector of growth.
Benign inflation will help expand gross margins, enabling companies to invest more in advertising, the lifeblood of FMCG (Fast-Moving Consumer Goods).
However, the companies also need to rethink their media strategies, as traditional media is losing relevance amid evolving consumer habits and preferences, driven by where, how, and how much time different age groups spend on media.
FMCG companies are also expected to invest in new technologies -- from automation and analytics to AI-driven demand forecasting, supply chain optimisation, and personalised consumer engagement and same-day and 10–30 minute Quick-Commerce deliveries are expected to be the critical pillar for omnichannel growth strategies.
"Digital-first, personalised, and performance-led platforms have gained prominence, while traditional mass media has gradually lost relevance and efficiency. This has required FMCG companies to rethink media mix, content formats, and engagement strategies to stay relevant and effective," Emami Vice Chairman & MD Harsha Vardhan Agarwal said.
The trend of premiumisation is expected to continue, but more selectively, with consumers continuing to prioritise quality, indulgence and wellness, and categories offering differentiated benefits expected to outperform.
"For the broader FMCG industry, 2026 is shaping up to be a more favourable year, supported by easing inflation, benign commodity trends, tax relief measures, higher government capex, and a more accommodative monetary stance. These factors collectively strengthen the outlook for consumption," he said.
He expects a "gradual recovery" in both rural and urban markets, continued premiumization, and further share gains for organized retail, e-commerce, D2C, and quick-commerce channels.
